Should I pay tax on this?

Smiley012

Hi there,

Hoping someone can advise.

I work a full time salary based IT role, and part of the benefits included are some monetary amounts per year that go towards two things: fitness and travel (as in Hotel stay).

Now, I get 750 per year towards fitness, and 500 towards hotels.

The process is this: I get invoices, and I submit the 'claim' through an online site. I realised at the end of last year, I was taxed on both of those "benefits". So a 330 euro claim of money I spent, I only got 150 euro (approx - kinda throwing around figures) back for it in my pay.

Now, this seems wrong to me, what is the point in me claiming the benefits to only get back half of what I paid out because the rest is taxed?

Thank you in advance!

silent_spark

Benefits in kind are part of your remuneration package and are taxed as if they were just part of your monthly salary. Did you think you were going to get them tax free? As an employee there are a few things you can receive tax free - up to €500 in the form of a one-off voucher, the bike to work scheme and travel tax saver are deducted before tax is applied.

Smiley012

Thank you for the super clear response, I knew I was probably dreaming!

Heffoman

Have a look at Revenue's website.

There are several ways travel and subsistence payments can be made to an employee without being taxable.

Where an employee performs the duties of the employment while temporarily away from their normal place of work or is working abroad on a foreign assignment, allowable subsistence expenses can be re-imbursed on the basis of:

Acceptable flat-rate allowances or
Actual expenses which have been vouched with receipts

silent_spark

Heffoman wrote: »

Have a look at Revenue's website.

There are several ways travel and subsistence payments can be made to an employee without being taxable.

Where an employee performs the duties of the employment while temporarily away from their normal place of work or is working abroad on a foreign assignment, allowable subsistence expenses can be re-imbursed on the basis of:

Acceptable flat-rate allowances or
Actual expenses which have been vouched with receipts

I took the OP's post to mean that these were optional benefits offered to them, and not work expenses incurred while performing their duties.

Edit: OP, if you do not already get a €500 voucher, or the option of availing of the bike to work scheme, or the tax saver scheme, perhaps you could ask your employer to offer these to you instead of the €750 hotel/gym benefit. It would reduce both of your tax liabilities.