Payment in product or services

Collie D · 02-02-2023 5:45pm #1

Not even sure how to word the title of the thread so hope I'm making sense on the below.

If someone already in paid and taxable employment did some additional contract work for a second company but instead of being paid a salary for the second company accepted the company's services are they liable to pay tax?

For example they work a shift at the weekend in a restaurant or hotel and in return they are given a voucher for that establishment?

Thanks in advance

Glencarraig · 02-02-2023 5:49pm

https://www.boards.ie/discussion/2058282604/payment-in-product-or-services

Probably classed as Benefit in Kind so therefore must be declared. I think an employer can give vouchers up to €500 PA tax free.

Collie D · 02-02-2023 5:58pm

Thanks. I did wonder about BIK aspect. But then again if the vouchers are for the same company the work is being done for would it not be similar to a staff discount which isn't (to the best of my knowledge) taxable?

Jim_Hodge · 02-02-2023 6:02pm

https://www.boards.ie/discussion/comment/120193015#Comment_120193015

nice try but it's benefit in kind and you're not staff or an employee going on the OP.

Collie D · 02-02-2023 6:02pm

Actually think I've found my answer when I search staff discount on Revenue

In-house vouchers or discount notes

You may operate a scheme to provide your employee with in-house vouchers or discount notes which are:

based on past purchases
may be used against future purchases.

This is a taxable benefit in kind. Employees must pay PAYE, PRSI and USC on the face value of the voucher.

If you only provide one voucher in the year, the small benefit may apply.

Collie D · 02-02-2023 6:17pm

https://www.boards.ie/discussion/comment/120193036#Comment_120193036

Thanks. The hypothetical wasn't for me but once I posted it got me wondering about my own staff discount and where the line was drawn. Found the answer anyway - just needed to ask the right question.

Jim_Hodge · 02-02-2023 7:36pm

https://www.boards.ie/discussion/comment/120193115#Comment_120193115

Sorry, so the question was about staff discount and not a bartered payment to a contractor? Huge difference.

Collie D · 02-02-2023 7:41pm

No, I get you. Was about the bartered payment but then that got me wondering about the discount.

Payment in product or services

Comments

In-house vouchers or discount notes