Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Small Benefit Exemption

  • 30-11-2021 5:17pm
    #1
    Royale with Cheese
    Registered Users, Registered Users 2 Posts: 9,211 ✭✭✭


    I've looked online everywhere but can't find a concrete answer to this question.

    I would like to purchase a €500 voucher through my limited company. To date I have always bought One4All cards in the post office, I was never sure of the exact rules so to be on the safe side I made sure the entire transaction did not go over €500. One4All charged I think €2 per card so I would always buy a €498 voucher or however much it was to bring the entire transaction to €500 exactly.

    One4All are now rubbish and I would like to buy a prepaid Mastercard. I was looking at swirlcard.com who charge €2.99 per card. They do not let you enter the exact amount you want to load the card with however, there is a dropdown list and your options are either €450 or €500. If I go with €500 and the entire transaction comes to €502.99 does this still qualify for the small benefit exemption or is the entire thing now liable for tax?

    Revenue's website just states "If a benefit exceeds €500 in value, the full value of that benefit is subject to tax.", which is a little bit ambiguous for my liking.



Comments

  • #2
    hold my beer
    Registered Users, Registered Users 2 Posts: 2,253 ✭✭✭hold my beer


    No you're only giving the employee 500. You"ll have to pay the bank charge.

    I've used Perx and it's great if you're looking for an alternative.



  • #3
    CryptoToFollow
    Registered Users, Registered Users 2 Posts: 25 ✭CryptoToFollow


    Be careful because a swirl card does not meet the criteria for company's to provide to employees tax free. This transaction would be taxable as part of the employees salary.

    The reason is that the card is redeemable for cash ie you could get cash back from the card rather than spending it. It doesn't matter if that is your intention or not.



  • #4
    Royale with Cheese
    Registered Users, Registered Users 2 Posts: 9,211 ✭✭✭Royale with Cheese


    It's a Swirl gift card. They specifically state it's valid for the small benefit exemption and can't be exchanged for cash.



  • #5
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    AllGo (no connection are another option). They provide a prepaid Mastercard which is accepted pretty much everywhere, so much better than All4One.

    They do charge an admin fee, which I put down as such in the books. So if the total is €505 I would declare €500 as small benefit scheme and €5 as admin costs.



Advertisement