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€500 gift voucher

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Comments

  • Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,354 Mod ✭✭✭✭L1011


    In what way? I thought one4all were fairly universally accepted?

    One4All charge an obscene retailer commission and are dwindling in acceptance, Me2You charge a lot less

    My former employer moved from paper One4alls to cards but then to prepaid Visa cards in the last few years. These were accepted almost everywhere - a few stores like Argos were scared off by the lack of a chip and Tesco required photo ID (despite the card not having a name on it!); and were universally taken online. I always emptied the shrapnel off them in to a specific value Amazon voucher as you can buy those in any amount.


  • Registered Users Posts: 3,299 ✭✭✭irishguy


    L1011 wrote: »
    One4All charge an obscene retailer commission and are dwindling in acceptance, Me2You charge a lot less

    My former employer moved from paper One4alls to cards but then to prepaid Visa cards in the last few years. These were accepted almost everywhere - a few stores like Argos were scared off by the lack of a chip and Tesco required photo ID (despite the card not having a name on it!); and were universally taken online. I always emptied the shrapnel off them in to a specific value Amazon voucher as you can buy those in any amount.

    So the Me2You ones are just Visa cards that i can use anywhere?

    Also the accountant said it had to be one voucher and get the full tax benefit. Thanks for the help


  • Registered Users Posts: 4,683 ✭✭✭barneystinson


    digzy wrote: »
    I'd be a bit wary of the one4all vouchers. They're not accepted as widely as one may think.

    Personally, I give my employees Dunnes vouchers. Whatever about hotels and phone shops, everyone has to get groceries. Best to be practical.

    Contrary to some inaccurate info from another poster.....

    For those thinking about giving a token or bonus to staff in the run up to Christmas, the Small Benefits Exemption Scheme represents the most efficient way of rewarding staff and can be both a tax saver and an effective employee incentive.

    Under the Scheme, employers and employees can benefit from a reward of up to €500 (increased from €250 from 22 October 2015) in value completely tax free each year.
    The reward must be in non-cash form. (Most employers give a voucher).
    It must be a once-off reward, for example, if an employer gives each employee one single voucher (up to a value of €500 from 22 October 2015) in the year, the value of the voucher can be disregarded for PAYE/USC/PRSI purposes. However, if the employer gives two vouchers worth €250 each, the value of the first voucher may be disregarded but the value of the second voucher has to be included as notional pay for PAYE/USC/PRSI purposes.
    The reward cannot exceed the limit set down, for example, if the employer gives a voucher exceeding €500 then the value of the entire amount of the voucher must be taken as notional pay.
    The reward / voucher must be purchased from company funds i.e. from the company bank account or company credit card. The employee cannot purchase a voucher themselves and seek reimbursement from their employer.
    It cannot be part of any salary sacrifice arrangement between the employee and employer.

    can you explain how in practice it would be possible after the fact for Revenue to ascertain whether a €500 debit transaction on a company bank account to (say) Dunne's stores was for a single €500 voucher or for 10 x €50?

    If the bank record and the payroll record both show a single €500 (or lower) transaction, and there's nothing to suggest an element of salary sacrifice/substitution, then there's no issue. If possible, obviously one should get a single €500 voucher, but if for some reason that isn't feasible then on a practical level it makes no difference.


  • Registered Users Posts: 33,519 ✭✭✭✭dudara


    @barneystinson - please do not make allegations against other posters. It is not tolerated in this forum. Moderator action will be taken if you continue

    dudara


  • Registered Users Posts: 736 ✭✭✭Legend100


    Jaysus. Stop trying to make this complicated, it really isn't - Revenue apply this thing in a reasonable way. If you can show you paid over the €500 and the employee can confirm they received it, nobody actually cares about whether it was 10 x €50 or 5 x €100. They'll really be stuck for something to argue about if it comes down to that!

    Actually came across this in a revenue audit a few years back. Strict letter of the law was applied by auditor in that more than one voucher adding up to 250 was disallowed and taxed. From memory client had given 5 x 50 so 200 was taxable.

    .....it didn't help that that was the least of their problems so I wasn't worried about fighting it!


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  • Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,354 Mod ✭✭✭✭L1011


    irishguy wrote: »
    So the Me2You ones are just Visa cards that i can use anywhere?

    As far as I know, they're still limited to certain stores just a far bigger list than One4All


  • Registered Users Posts: 1,207 ✭✭✭bungaro79


    i did a online tutoring work over the summer and basically got taxed over 60% on the gross amount (contract was for around 2.5k, came out with just under 1k). dcu were the ones paying us. the fact that it is contract work for the summer (i work full time in another job normally) would i be in a position to ask dcu to consider this to get less of a hit on the tax??
    thanks


  • Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,354 Mod ✭✭✭✭L1011


    bungaro79 wrote: »
    i did a online tutoring work over the summer and basically got taxed over 60% on the gross amount (contract was for around 2.5k, came out with just under 1k). dcu were the ones paying us. the fact that it is contract work for the summer (i work full time in another job normally) would i be in a position to ask dcu to consider this to get less of a hit on the tax??
    thanks

    No, as salary sacrifice for this is specifically prohibited.


  • Registered Users Posts: 58,456 ✭✭✭✭ibarelycare


    Regarding the increase in the small benefits exemption, I run payroll for a company who pays peer rewards (which fall under this exemption - have Revenue approval) throughout the year for employees.

    Previously an employee would have the exemption on their first award of the year that was under €250.

    However now that it has changed since 22nd October, how will it work? if someone has already received a benefit of €250 in 2015 is their exemption seen as used now, even though the threshold has increased? It means that a lot of employees will be losing out.


  • Registered Users Posts: 3,412 ✭✭✭toadfly


    Revenue have confirmed if the benefit has already been used in 2015, it cannot be used again to reach the new threshold.


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  • Registered Users Posts: 58,456 ✭✭✭✭ibarelycare


    toadfly wrote: »
    Revenue have confirmed if the benefit has already been used in 2015, it cannot be used again to reach the new threshold.

    Thanks. Do you have a link to that confirmation? Sorry, can't seem to find it myself :o I want to circulate the information but would like to have the backup information.


  • Registered Users Posts: 4,683 ✭✭✭barneystinson


    Thanks. Do you have a link to that confirmation? Sorry, can't seem to find it myself :o I want to circulate the information but would like to have the backup information.

    Well the increased exemption only relates to awards after a date in October 2015, and it very strictly applies to only one award per annum, so if it's already been used it's already been used...


  • Registered Users Posts: 58,456 ✭✭✭✭ibarelycare


    Well the increased exemption only relates to awards after a date in October 2015, and it very strictly applies to only one award per annum, so if it's already been used it's already been used...

    Yes I understand that, but I have clients querying it and I want to be able to point them to the legislation.


  • Registered Users Posts: 710 ✭✭✭BOHSBOHS


    see earlier info re "qualifying voucher"

    also see Revenue's BIK miscellaneous FAQ on the matter

    http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/faqs/miscellaneous.html#misc15


  • Registered Users Posts: 58,456 ✭✭✭✭ibarelycare


    BOHSBOHS wrote: »
    see earlier info re "qualifying voucher"

    also see Revenue's BIK miscellaneous FAQ on the matter

    http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/faqs/miscellaneous.html#misc15

    Cheers.


  • Registered Users Posts: 1,224 ✭✭✭loopymum


    Hi, bumping this as need to buy an employee a gift card today, is it ok to buy them a print at home amazon voucher?


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