Limerick senator seeks extension of gift voucher scheme for workers

THE Government can help employers reward their workersย and boost local business by extending a measure that allows gift vouchers to be given twice a year tax free.

Thatโ€™s according to Limerick Senator Maria Byrne who has called for a change in the Small Benefit Exemption which enables companies give a gift voucher up to the value of โ‚ฌ500, on which employees will not be required to pay tax.

โ€œNormally this only applies to one qualifying incentive per year. However this was relaxed in 2020 by Revenue, allowing companies to avail of the Small Benefit Exemption on two occasions a year, up to the same maximum total per annum of โ‚ฌ500,” Senator Byrne explained.

โ€œThis change to the Small Benefit Exemption was introduced to enable employers recognise the efforts of their staff in light of the ย impact of the Covid pandemic in 2020 and 2021, and I am calling on Revenue to extend it.

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โ€œMany companies and organisations are only now in a position to give gifts after a difficult two years. And many are looking to thank their workers for their additional commitment during the pandemic. It would be great if they could do so with a tax-free gift voucher now, without impeding their ability to give a similar voucher again at the end of the year as part of their usual approach to Christmas gifts or bonuses.

โ€œThis could also provide a real boost to Irish businesses. We know the pandemic has been especially hard for hospitality and retail who had to endure a number of closures and restrictions. Encouraging the giving of gift vouchers could really help to boost these sectors.

“With a voucher people may be more likely to treat themselves or their families to a meal out, a night or two away, or to spend on something they might not otherwise be able to buy.

โ€œSo many employers want to recognise and thank their staff โ€“ letโ€™s equip them to do it by extending this relaxation of rules for the Small Benefit Exemption to the end of 2022,โ€ Senator Byrne concluded.

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