Christmas Bonus - Tax Relief?

jiggawigga

A friend is expecting a bonus this christmas. To minimise the tax his boss suggested a voucher as you are entitled to 250 tax free or something along those lines. In this context is a voucher simply a voucher, or do certain vouchers get tax relief while others do not?

Any help would be brilliant.

Legend100

There is no specific vouchers that tax relief is available, it is just vouchers in general with a cap of 250 euro tax free.

Incidentally, you must get the 250 all in one go as it is the "giving" of the vouchers that is tax free. ie if for example you were given 100 euro vouchers in march and were given another 150 euro in vouchers as part of your christmas bonus, technically you are taxable on the 150 even tho you are at the 250 threshold

DoMyBooks

It can be a voucher for anywhere see below

Taken from revenue.ie


How do the new arrangements affect the Christmas Bonus and how it is treated?
A cash bonus at Christmas should be put through the payroll and PAYE/PRSI applied as normal. Where the bonus is in non-cash form with a value not exceeding €250 (€100 prior to 1 January 2005) PAYE and PRSI need not be applied to that benefit (covered by the one off small benefit exclusion). No more than one such benefit given to an employee in a tax year will qualify for such treatment. Where a benefit exceeds €250 (€100 prior to 1 January 2005) in value the full value of the benefit is to be subjected to PAYE and PRSI.

jiggawigga

That's great thanks.