Increase in Small Benefit Scheme in Budget 2025
In the Budget 2025, announced today by Minister for Finance Jack Chambers and Minister for Public Expenditure, Paschal Donohoe, the Small Benefit Exemption limit will increase from €1,000 to €1,500 from 1 January 2025 and the number of gift cards that can be given in one year will increase from two to five.
That means that from the start of 2025, employers can give up to 5 gift cards per year to their employees tax-free up to a combined total value of €1,500.
As long as the new Small Benefit Budget 2025 limits are adhered to, no employer or employee PRSI or USC or income tax will be charged on these gift cards, saving hundreds of euros per year in tax for both employers and employees.
Small Benefit awards can be for any non-cash rewards. Even though no tax is due, Small Benefit Awards needs to be reported to Revenue as part of ERR (Enhanced Revenue Reporting) which was introduced in January 2024.
For full details of the Small Benefit Scheme, visit our dedicated website page allgogiftcard.com/small-benefit-scheme
AllGo Mastercard is one of the most popular B2B gift cards used by Irish employers on the Small Benefit Scheme. See more info at allgogiftcard.com
