Potential tax-free bonus increase could generate €1bn tax break

New research shows that an increase to the Small Benefit Exemption Scheme could lead to tax-breaks of €1bn for private sector employers and employees

Last month, Tanáiste Leo Varadkar said that the Government was looking at doubling the scheme's €500 limit. Picture: Gareth Chaney/Collins Photos.

Doubling the Small Benefit Exemption Scheme could generate a tax break of over €1bn for the private sector, according to new research.

Under the scheme, which is utilised by around 62% of employers, staff can receive a one-off, non-cash, tax-free bonus of €500 per annum.