Guide to the Small Benefit Scheme (5th Edition)

Posted by Gary Purcell on Oct 19, 2021
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In preparation for the year-end reward deadline, we have just published the latest edition of our Expert Guide to the €500 Small Benefit Scheme. Download it for free at

Overview of Small Benefit Scheme
The Small Benefit Scheme allows Irish employers to provide a tax exempt reward for employees of up to €500 per year. As long as the rewards given are-

1) a maximum of €500
2) only one reward per employee per year
3) not paid in cash or by payroll, and
4) not part of any salary sacrifice arrangement

then these rewards are NOT subject to any Benefit-In-Kind (BIK) tax liability – either for the employee or for the employer. This can save up to €657 per employee in Employee Income Tax, PRSI and USC, and Employer PRSI!

Small Benefit Scheme Guide (5th Edition)
Fully updated and with an extended FAQ section based on client questions over the past year, this 5th Edition of our popular guide will tell you everything you need to know to get the most out of this tax-break for your business.

Reward each of your staff up to €500 without the company or the employee being liable for any tax or BIK whatsoever. This is an opportunity that every company in Ireland should avail of. And yet, as our guide shows, only 56% of Irish companies actually do.

There are also additions to the Scheme in 2020/2021 because of COVID (eg the waiver of the one voucher rule for key workers), and as always we give inside tips on how to benefit from the scheme year round as opposed to just at the year end.

Download the Guide to Small Benefit Scheme

Small Benefit Scheme - Facts

€590 million
If all Irish employers fully availed of the Small Benefit Scheme, the total annual tax saving would be €520 million!

€190 million
Because only about 50% of Irish employers use the Scheme, and on average those that do only avail of 60% of the €500 limit, the actual annual tax saving is €190m.

Guide Highlights

  • Small Benefit Rules
  • Tax Savings Calculations
  • Best Gift Cards for your Staff
  • Paying Bonuses Tax-Free
  • Extending the Scheme Year Round
  • Small Benefit FAQs

Guide to Small Benefit Scheme 5th Edition
The 5th edition of the Small Benefit Scheme Guide gives you expert info, insights and case studies for getting the most out of the scheme. Download it for free today by clicking the Download Now.

Allgo Small Benefit Guide


Free Expert Guide to the €500

Small Benefit Scheme

Get the Expert Guide to the Irish Revenue's tax-free reward scheme for Irish employers and employees.

  • Small Benefit Rules
  • Tax Savings Calculations
  • Best Gift Cards for your Staff
  • Paying Bonuses Tax-Free
  • Extending the Scheme Year Round
  • Other Employee Reward Tax Schemes
  • Small Benefit FAQs

Download Now



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