Tax Tip: Tax-Free Benefits

Consider whether your company can provide you or a key employee with the use of any assets that would be exempt from a charge to income tax as a Benefit-in-Kind.

Where an employee/ director is provided with the free use of an asset by his employer then a Benefit-in-Kind charge will arise. However there are certain assets that can be provided by an employer without being treated as a taxable benefit. These include:

  • A monthly or annual bus, rail or ferry pass issued by an approved transport provider,
  • A mobile phone for business use where the private use is incidental to the business
  • High speed internet access where the private use is incidental to the business
  • Computer equipment where the private use is incidental to the business
  • The costs and expenses in connection with personal security assets and
  • An expense of up to €1,000 on a bicycle and bicycle safety equipment for the purpose of cycling to work.

Copyright © 2020 McAvoy & Associates, All rights reserved.


Joe McAvoy

Director

Tax Services

Call: +353 21 432 1321

View Profile

Dara Burke

Director

Tax Services

Call: +353 21 432 1321

View Profile

Shane Carroll

Director

Business Advisory

Call: +353 21 432 1321

View Profile


Related Articles
Tax Tip: Tax Free Gains

Have your company use the Participation Exemption to generate tax-free gains from the sale of shares that it owns in trading companies. Gains made on the disposal of certain shares are ...Continue Reading

Tax Tip: Retirement Relief

Arranging to sell tax-exempt assets is always an attractive idea. If you are at least 55 years of age or are approaching this age you should bear in mind that ...Continue Reading

Tax Tip: Incorporation

If you are carrying on business as an unincorporated entity consider transferring your business to a company to avail of the low 12.5% corporate tax rate. Given Ireland’s favourable tax ...Continue Reading

Tax Tip: Start Up Relief

If you are starting a new business you may be able to claim a refund of tax that you paid in prior years under the Start Up Relief for Entrepreneurs ...Continue Reading

Best Tax Breaks Often the Least Used

“Ireland has some particularly generous tax reliefs but when I meet new clients for the first time I get the impression that the best reliefs are the least used,” according ...Continue Reading

Dwelling House Exemption from Inheritance Tax

If you are considering drafting your Will so as to leave to a child (or to any other individual) who lives with you both your residence and any other dwelling ...Continue Reading