Employers urged to make use of BIK exemption

EMPLOYERS could give €480 million in tax-free payments to employees if they utilise the small benefit-in-kind (BIK) exemption which was increased by Finance Minister Brian Cowen in the Budget.

The Budget increase in the exemption threshold, from €100 to €250, could be worth in excess of €480m to Irish employees in 2005, according to the managing director of The Gift Voucher Shop Michael Dawson.

To qualify, the payment must be made in one go. It qualifies for tax relief even where other benefits are made to the employee.