Vouchers and Small Benefits
Revenue’s Enhanced Reporting Requirements for Vouchers and other Small Benefits.
From 1 Jan 2024, under Revenue’s Enhanced Reporting Requirements (ERR), any voucher or small non-cash benefit given by an employer to an employee must be reported by the employer to Revenue through ROS (Revenue Online Service) on or before the date the benefit is provided to the employee.
Small benefits will most often consist of vouchers but also include any other benefits such as gifts of wine, hampers, etc, given to an employer by an employee.
Reporting of Small Benefits and Travel Expenses to Revenue
Details of the benefit provided will then be documented by Revenue in the Travel Expenses & Benefits section of each employee’s My Account Revenue page. Details of travel expenses paid to employees must also be returned to Revenue by UCD and will also be documented in the employee’s My Account Revenue page.
Qualifying non-taxable small benefits
In the first instance, the employer must satisfy themselves that each benefit to be awarded meets the conditions for the small benefit exemption to apply. This will principally mean that the benefit given is a non cash benefit which is not provided as a form of remuneration for work undertaken or under a salary sacrifice agreement. Under the legislation, an employee may receive up to two benefits not exceeding a total of €1,000 in one tax year. If a third or further benefits are given, these will be taxable under PAYE.
Reporting requirements for vouchers/small benefits awarded to non-employees
The Small Benefit Exemption only applies to qualifying incentives awarded by employers to employees. No exemption applies where a voucher/benefit is given to a non-employee and in such cases, the voucher/benefit can be considered as taxable income in the hands of the recipient. However, vouchers/small benefits awarded to non-employees do not, at present, have to be reported to Revenue under the new ERR reporting requirements.
Current position in UCD re awarding vouchers and other small benefits to UCD employees
The University’s Hospitality and Entertainment Policy does not permit University funds to be used to purchase gifts for faculty or staff. This effectively means that reportable small benefits should not be provided to UCD employees.
In addition, the University Management Team (UMT) approved a Voucher/Small Benefit Policy on 29-2-2024.
Under the policy, the University does not permit the awarding of vouchers or other small benefits to employees. Vouchers for employees should not be purchased through Eprocurement or purchased directly and reclaimed through expenses.
Vouchers up to a limit of €100 may be awarded to non-employees provided the voucher is not a form of remuneration for work undertaken.