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Creche fees

  • 31-08-2020 4:17pm
    #1
    jos28
    Registered Users, Registered Users 2 Posts: 7,204 ✭✭✭


    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.


Comments

  • #2
    1991hun
    Registered Users, Registered Users 2 Posts: 6 ✭1991hun


    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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