Taxation Ch3

Social welfare payments exempt from tax

Jobseeker's allowance, disability allowance, child benefit

Social welfare payments not exempt from tax

Illness benefit, carer’s benefit, state pensions, carer’s allowance, maternity benefit, one parent family payments, jobseeker’s benefit

Cash basis

Most Schedule E payments, including bonuses, are on a cash basis

Earned basis

Dept of Social Protection payments, proprietary director payments

Reimbursed expenses

Non-taxable when employer reimburses employees for expenses incurred in basis of performance of duties on the basis of vouched receipts

Flat rate expenses

Set amounts for travel and subsistence are not taxable if they do not exceed the civil service rates. Claim with date, distance or time away, must be submitted by employee and approved and retained by employer

Round sum expenses

Taxable, additional salary payments

Remote working payments

3.20/day is not taxable. If claiming for remote work relief, must deduct remote working payments from that claim

Provision of living accommodation because of nature/tradition of trade

Exempt from tax where necessary

• Employee is required to be on call outside of normal working hours

• Employee is in fact frequently called out AND

• Accommodation is provided to give employee quick access to place of employment

• Ex- Residential care staff, student nurses on hospital campus, prison governors

Provision of bicycle and equipment to employee

Tax free every four years where purchased by employer, used mainly for travelling all/part from home to work, and where benefit is available to all
Limits:

• 1250 for bike/safety equipment

• 1500 for electric bike + equipment

• 3000 for cargo or e-cargo + equipment

Expenses incurred for provision of free or subsidised canteen meals to employee

Tax free where facility is available to all employees

Expenses incurred for provision of monthly bus/train pass to employees

Tax free

Low business travel

Extra 20% tax free where

• Annual business travel is 8,0001 - 25,999 km

• Daily logbook of business travel

• Work 20 hours a week +

• 70% of time away from base

Electric vehicles BIK

2x OMV reduction

Category E cars BIK

No OMV reduction

Company vans BIK

8% and reduction of OMV

0% where- required to keep at residence, prohibited from using for private purpose, away from base 80% of time +

made for transporting goods, roofed area behind driver’s seat, no side windows/seating in roofed area

Employer provided accommodation

Charged at market value plus expenses paid by employer, less employee contributions. Furnishings are 5% of value when first provided

Provision of creche BIK

Annual value of childcare facility use plus expenses

Provision of services or expense payments by employer

Cost of expense is taxable to employee e.g. gym membership, medical insurance premium, personal phone bills

Medical insurance premium BIK

Gross amount is added as schedule E BIK
First 1,000 - employee gets 20% tax relief (non-refundable)