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Creche fees

jos28 · 2020-08-31 15:17:10

Does anyone know the most tax efficient way to help an employee out with creche fees. I know there's no tax relief and that it would be classified as BIK if an employer pays the fees. Is there anyway to help out other than giving a pay rise to cover childcare costs.

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31-08-2020 4:17pm

#1

jos28

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Does anyone know the most tax efficient way to help an employee out with creche fees. I know there's no tax relief and that it would be classified as BIK if an employer pays the fees. Is there anyway to help out other than giving a pay rise to cover childcare costs.

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#2 12-10-2020 3:15pm
1991hun

Registered Users Posts: 6 ✭

Join Date: October 2020

Posts: 6

There is no relief unfortunately for childcare costs.

A subsidy towards childcare costs would be a taxable BIK, subject to tax, USC and PRSI. Similarly, a payrise would also be fully taxable.

Hope this helps.

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