Gift Vouchers and Benefit in Kind

[Heraldo]

An employer has given a gift voucher for €1000 and has not included this as a Benefit in Kind for payroll purposes. Is the employer the person responsible for returning the BIK and ensuring it is taxed correctly under the PAYE system or is the employee obliged to return the benefit in kind in their tax return.

 

[mathepac]

My understanding is that a gift-voucher valued at up to €500 is tax-free. I am unsure about the mechanism for taxing amounts in excess of €500 in a tax year.

 

[Gordon Gekko]

My understanding is that the entire €1,000 is a taxable benefit-in-kind.

e.g. that €500 is tax-free, but that €501 is fully taxable

 

[Jim Stafford]

The Employer is obligated to deduct tax on the BIK of €500.


Jim Stafford

 

[Gordon Gekko]

The Employer is obligated to deduct tax on the BIK of €500.


Jim Stafford

Wrong.

The entire €1,000 is subject to BIK.

 

[Jim Stafford]

Gordon is correct if just one voucher was given for €1,000. If the employer provided two vouchers of €500 each, then only the second voucher would be taxable.

Jim Stafford

 

[Heraldo]

Thank you all very much for your replies.