Business owners encouraged to take advantage of changes to tax-free rewards scheme
As announced in Budget 2025, changes to the Small Benefit Exemption Scheme now mean that businesses can reward each member of staff with up to€1500 in gift cards or vouchers annually, completely tax free. With the changes to the scheme, businesses can gift up to 5 benefits, in the form of vouchers or gift cards, to each employee annually, the total combined value of which must not exceed €1500. This represents a €500 increase to the scheme from previous years and a potential saving of up to €1980 for the business, when compared with rewarding the same amount via payroll and accruing the associated tax.
Businesses in Drogheda are doubly fortunate, as shop local program The Love Drogheda Gift Card qualifies for the tax-free savings under the Small Benefit Exemption Scheme. The Love Drogheda Gift Card is is one of the projects managed by Love Drogheda BID (Business Improvement District) and operates at no charge to the over 240 Drogheda businesses that accept the gift card. This is being done to ensure that every euro spent using the Love Drogheda Gift Card stays with our local businesses, with no sign-up fees charged and 0% commission on each transaction.
“The Love Drogheda Gift Card was put in place to retain as much local spending as possible, to support the businesses in Drogheda and to offer huge choice and variety to customers by introducing Drogheda’s own multi-store gift card” said Trevor Connolly, Love Drogheda BID CEO. “We are encouraging every business in Drogheda to get behind the Love Drogheda Gift Card and select it as their first choice when it comes to employee rewarding. It’s a fantastic way to show your appreciation for staff, highlight your unwavering support for the businesses in our town and with the new changes to the Small Benefit Exemption Scheme, it is a cost-effective solution for businesses looking to reward their staff.”
The Love Drogheda Gift Card has so far retained over €600,000 in the local economy, helping to support Drogheda businesses and jobs. If you are a business looking to place a corporate order of Love Drogheda Gift Cards as part of your staff rewards, please visit https://corporate.townandcitygiftcards.ie/
To read more on the Small Benefit Exemption Scheme, please visit https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/valuation-of-benefits/small-benefit-exemption.aspx
