Benefit in Kind
Are you missing out on the many generous tax-free benefits of gift-giving? Tangible gifts are tax-free under Revenue’s Small Benefits Exemption and their Long Service Awards Allowance.
Small Benefits
Exemption
Revenue currently allows up to two non-cash benefits per employee, per annum, up to €1000. PAYE, PRSI, USC need not be applied to the benefit.
From 2025, the Small Benefit Allowance will increase from €1000 to €1,500 per annum, per employee. Additionally, employers can provide up to five non-cash benefits (including gifts), up to a cumulative maximum value of €1500 per employee, per annum. This increases the flexibility for employers to recognise and reward their employees throughout the year, and in a tax-efficient manner.
Long Service
Awards Allowance
Revenue also offers generous tax relief on Long Service Awards, ONLY when the awards take the form of tangible gifts. PAYE, PRSI or USC need not be applied to the benefit. The allowance is €50 for each year of service, starting at 20 years and every five years after that.
This represents up to 57% savings over long service awards made in the form of cash or vouchers.
Revenue rules on Long Service Awards
Circumstances in which awards for long service are not taxed:
The award is made to mark long service of not less than 20 years
The award is tangible (that is, not vouchers, bonds or cash)
The cost is not more than €50 for each year of service
No similar award has been made to the employee within the previous 5 years.
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