{"id":9008,"date":"2020-11-10T11:05:00","date_gmt":"2020-11-10T11:05:00","guid":{"rendered":"https:\/\/allgogiftcard.com\/?p=9008"},"modified":"2025-07-15T14:47:00","modified_gmt":"2025-07-15T13:47:00","slug":"businesses-missing-out-on-e400m-tax-savings","status":"publish","type":"post","link":"https:\/\/allgogiftcard.com\/gift-cards\/businesses-missing-out-on-e400m-tax-savings\/","title":{"rendered":"Businesses Missing Out on \u20ac400m Tax-Savings"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-26d7ecfcfb0554059922642d266ecc0c\" style=\"color:#5cd05a\">Irish businesses are passing up \u20ac400m in potential tax-savings each year on the\u00a0<a href=\"https:\/\/www.allgo.ie\/small-benefit-scheme\/\" target=\"_blank\" rel=\"noreferrer noopener\">\u20ac500 Small Benefit Scheme<\/a>.<\/h2>\n\n\n\n<p><strong>The \u20ac500 Small Benefit Scheme allows Irish employers to reward employees up to \u20ac500 per year without incurring any BIK for the employee or PRSI for the employer. However only a small percentage of this potentially huge tax break is being availed of by Irish businesses.<\/strong><\/p>\n\n\n\n<p>This missed opportunity for Irish businesses can be illustrated by the following 3 figures-<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-9c6c16b4ee16254df7f6bae8675241bb\" style=\"color:#5cd05a\">1. \u20ac590m<\/h2>\n\n\n\n<p>If all Irish employers fully availed of the\u00a0<a href=\"https:\/\/allgogiftcard.com\/small-benefit-scheme\/\" target=\"_blank\" rel=\"noreferrer noopener\">Small Benefit Scheme<\/a>\u00a0(ie issued a \u20ac500 gift voucher to all their employees), the total annual tax saving would be\u00a0<strong>\u20ac590 million per year.<\/strong><\/p>\n\n\n\n<p>This is based on 2.4m employed people in Ireland, with 35% of those being tax exempt, 44% on the lower income tax rate, and 23% on higher income tax. The average tax saving for lower income tax rate on the Small Benefit Scheme is \u20ac265. For those on the higher tax rate, the figure is \u20ac618. So when you work out the maths on this, the total potential tax saving is \u20ac590m.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-32a77679ac3be4aaea7239365bcbe6c1\" style=\"color:#5cd05a\">2. 53%<\/h2>\n\n\n\n<p>Only 53% of Irish companies actually avail of Small Benefit Scheme. This is based on the\u00a0<a href=\"https:\/\/allgogiftcard.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">AllGo<\/a>\u00a0HR Trends Survey in 2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-96c1ab8dbaf6f6a0b0e2375cd1b283b0\" style=\"color:#5cd05a\">3. \u20ac300<\/h2>\n\n\n\n<p>\u20ac300 is the average gift card that Irish employees receive on the scheme, based on sales of\u00a0<a href=\"https:\/\/allgogiftcard.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">AllGo\u2019s Mastercard Gift Card\u00a0<\/a>in 2019 and 2020.<\/p>\n\n\n\n<p><strong><br>The combined effect of only 53% of Irish business availing of the Small Benefit Scheme, and for those that do avail of it, the average amount being&nbsp;rewarded is only \u20ac300 out of a maximum \u20ac500, means that the annual tax savings on the Small Benefit Scheme is only \u20ac188m.&nbsp;Therefore \u20ac402m in tax-saving is being missed each year!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Irish businesses are passing up \u20ac400m in potential tax-savings each year on the\u00a0\u20ac500 Small Benefit Scheme. The \u20ac500 Small Benefit Scheme allows Irish employers to reward employees up to \u20ac500 per year without incurring any BIK for the employee or PRSI for the employer. However only a small percentage of this potentially huge tax break [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":9009,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[101,104,97,126,117,105,98,106,102,87,125,99,91,127,93],"class_list":["post-9008","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gift-cards","tag-e500-an-post","tag-e500-small-benefit-scheme","tag-e500-voucher","tag-e500-vouucher","tag-employee-performance","tag-employee-reward-programme","tag-employee-rewards","tag-small-benefit","tag-small-benefit-exemption-scheme","tag-small-benefit-scheme","tag-staff-rewards","tag-staff-rewardstax-free-rewards","tag-tax-free-vouchers-for-employees-ireland","tag-tax-free-employee-rewards","tag-tax-free-rewards"],"acf":[],"_links":{"self":[{"href":"https:\/\/allgogiftcard.com\/wp-json\/wp\/v2\/posts\/9008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/allgogiftcard.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/allgogiftcard.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/allgogiftcard.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/allgogiftcard.com\/wp-json\/wp\/v2\/comments?post=9008"}],"version-history":[{"count":4,"href":"https:\/\/allgogiftcard.com\/wp-json\/wp\/v2\/posts\/9008\/revisions"}],"predecessor-version":[{"id":11150,"href":"https:\/\/allgogiftcard.com\/wp-json\/wp\/v2\/posts\/9008\/revisions\/11150"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/allgogiftcard.com\/wp-json\/wp\/v2\/media\/9009"}],"wp:attachment":[{"href":"https:\/\/allgogiftcard.com\/wp-json\/wp\/v2\/media?parent=9008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/allgogiftcard.com\/wp-json\/wp\/v2\/categories?post=9008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/allgogiftcard.com\/wp-json\/wp\/v2\/tags?post=9008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}