Tax Relief on Incentives

1. Tax Relief on Incentives Jock Jordan Group Sales Director – One4all Chairman of IMA Ireland Chapter

2. Presentation Ireland landscape in this area How Germany treats this subject Tax Relief on Incentives in the UK Market – Dan Nugent, SVM Global

3. Ireland – two key reliefs • Bikes for work • Benefit in Kind

4. Bikes for Work Tax relief on buying bicycles through payroll deduction The employee does not pay Income Tax or PRSI on the price of a bicycle bought through the scheme, up to €1,000 Free from employer PRSI The scheme operates on a 5 year cycle ..excuse the pun

5. BIK for staff incentives Applies to Non Cash Rewards up to a maximum value of €500 Payment is free from any PAYE, PRSI and USC deductions for employees Free from Employer PRSI Must be in a single payment albeit Revenue have approved a One4all “locked” scheme that allows regular allocations to a locked account that makes a payment in a single transaction It does not only apply to Gift Vouchers and Cards

6. BIK for staff travel Annual Bus and Rail tickets Free from employer PRSI Payment is free from any PAYE, PRSI and USC deductions for employees Can be used as part of employees Bonus eg.

7. German Market – BIK on Vouchers Two schemes. • Up to €44 monthly payments in Gift Cards/vouchers to staff. • €60 in single payments for personal occasions such as birthdays, promotion, company anniversary, wedding, a child's birth. • The payments are free from income tax and social security contributions for staff and from Social Security contributions by an employer

8. UK Market Dan Nugent Sales Director – SVM Global Member of IMA Europe

9. reward and engage employees intax efficient ways • Long Service Awards • Pay out at 20 years then every further 10 years (30, 40) • Providing no similar LSA award received within the previous 10 years • Up to £50 per year of service (£1,000 at 20 years) • Tangible Awards – not cash • Suggestion Schemes • £25 per idea • Can award up to £5000 • Idea must be adopted and lead to financial benefit for the company

10. reward and engage employees intax efficient ways • Voluntary Benefits • Wide range of preferential deals for employees • Opportunity to save significant amounts on lifestyle purchases • Christmas Party/Staff Celebrations • £150 per employee • Loans • Interest free beneficial loan up to £10,000 • Trivial Benefits • Non cash or something that has money’s worth • No set rules for determining what defines a trivial benefit

11. reward and engage employees intax efficient ways • Salary Sacrifice • Paid through gross salary – delivering savings on Income Tax and National Insurance • Also delivers savings on Employer NI • Most popular schemes include: • Childcare – Sacrifice up to £243 per month • Cycles – Cycle and associated safety equipment up to £1000 • Computers – Not full tax break – Computer is taxed at 20% of its value per year • Cars – popular with low CO2 emission vehicles • Other programmes include: • Pension contributions, mobile phones, health Screening, gym membership, health cash plans, payroll giving

12. Thank you