BIK on Employee Benefits
BIK (benefit-in-kind) is any non-cash benefit of monetary value that you provide for your employee, often referred to as perks.
The benefits have monetary value, so they must be treated as taxable income. You must deduct Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) from your employee’s pay on the value of a benefit.
Free Meals
You may provide free or subsidised meals in staff canteens for all employees. If this facility is made available to all employees, these meals are not a taxable benefit in kind (BIK). Meals must be provided in a staff canteen. This does not include external third-party restaurants, cafes or similar establishments.
Entertainment expenses
Your employee may have to pay for business entertainment expenses to perform the duties of their employment with you. You may repay them for these expenses. Repaying this type of entertainment expenses is not a taxable BIK.
Events
You may decide to provide seasonal parties, special occasion meals or other inclusive events, such as sports days, for your employees. The cost of these events are not taxable BIKs, provided the expenses are reasonable and available to all employees.
Need help with claiming the relief?
If you require any help with your Annual Tax return, please leave your email address, we will be happy to assist.
CT1 Annual Return
from €85
Included is:
- CRO Fixed Fee €20
- Submission of B1 Form in CORE
- Audit Exemption claim
- Monitoring in CORE till successful registration by CRO
You may also find useful:
- Corporation Tax Return - from €120
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