Changes To Small Benefit Scheme & Mileage Rates 2023


Changes to Small Benefit Exemption Scheme

As part of Budget 2023, the limit of the Small Benefit Exemption Scheme has increased. Employers can now gift their employees a tax-free bonus of €1,000 (rather than €500, as it was previously).

As before, this bonus must be in the form of a voucher – but now employers can gift two vouchers per year rather than just one (as long as the total amount in the year does not exceed €1,000).


Changes to Civil Service Mileage Claims

Revenue have also announced a change in the rates for civil service mileage claims. Many businesses use these as a basis for their own mileage rates.

The outgoing rates were in place since April 2017, and the updated rates are effective as of 1 September 2022:

The kilometres accumulated by an employee between 1 January 2022 and 31 August 2022 will not be altered by the introduction of these new rates – but actual kilometres driven to date will count towards total kilometres for the year.

For more information – including the rates for different vehicles – please visit the Revenue website.

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