<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=2750159335126703&amp;ev=PageView&amp;noscript=1">
Skip to content

Making the most of changes to the Small Benefit Exemption Scheme

Posted on 29 November 2022
Read time 2 mins
Author Sophia 🌱

As we begin the countdown to Christmas, it’s time to start thinking about how you will reward your employees this festive season. 

Thankfully, recent changes to the Small Benefit Exemption (SBE) scheme have just made the rewards process a little bit easier and more cost-effective for employers. 

In this blog post, we’re going to cover what’s changed in the SBE scheme and how you can take advantage of these changes to reward your employees this Christmas. 


How the SBE scheme has changed and what it means for employers

As part of the 2023 Budget, the Minister for Finance of Ireland, Paschal Donohoe, revealed two critical changes to the Small Benefit Exemption scheme.

  1. The maximum annual benefit increased from €500 to €1000 for each employee. 
  2. This benefit can be split into two tax-free rewards. 

While these changes were announced as part of the 2023 Budget, they came into effect immediately, making them available for businesses to use during the current 2022 tax year. 


What the increase in SBE means for employers

For Irish businesses looking to reward their employees this Christmas, changes to the SBE scheme offer them a chance to make considerable tax savings. 

While a cash bonus paid through payroll is subject to PRSI and tax, a non-cash gift, such as a gift card or voucher, will fall under Small Benefit Exemption, making it entirely tax-free for you and the employee!


Irish businesses can save up to €1313.54 per employee when giving a net non-cash reward worth €1000.


Making The Most Of The Small Benefit Exemption Increase

Changes to the SBE scheme are effective immediately, meaning you can start making the most of the new €1000 limit straight away. 

Plus, now that you can split the reward maximum across two payments, if you’ve already rewarded your employees with the previous maximum reward value of €500, you can still offer them an additional €500 before the end of the current tax year. 

While the maximum benefit amount has increased from €500 to €1000, you can still see significant savings when gifting any amount using SBE. Therefore, regardless of your current rewards budget, it’s worth exploring the use of non-cash benefits as a part of your employee rewards and incentive strategy. 


Using Small Benefit Exemption For Employee Rewards

As household costs continue to rise, the Small Benefit Exemption scheme offers you a unique opportunity to provide additional support to your employees this festive season, all at no extra cost to your business.

At Tillo, we make it easy for you to bulk-buy digital gift cards or Choice Links to use as employee rewards, both of which qualify for Small Benefit Exemption and can be purchased quickly and easily. 

Get in touch with us today to learn more about giving the gift of choice with a Tillo Choice Link, or head over to our Small Benefit Exemption guide to learn more about the scheme. 



Tillo dots icon

Sign-up to our mailing list for the latest rewards, incentives & gifting insights