Benefit-in-kind frequently asked questions [FAQs]
The five most common Benefit-in-Kind FAQs
General FAQs
- What is the income limit for BIK?
- Does income from previous employers count for the limit?
- How does this apply to connected employers?
- Does the €1,905 income limit apply to Directors?
What is the income limit for BIK?
An employee whose income (inclusive of taxable benefits-in-kind) is less than €1,905 is not liable to income tax on non-cash benefits-in-kind provided.
Does income from previous employers count for the purposes of the €1,905 limit?
Income from a previous employment does not reckon for the purposes of the €1,905 limit except where the previous employment has been held by the employee with a connected body corporate.
How does this apply to connected employers?
All employments held by an individual under the same concern or within a group of two or more concerns, one of which controls the rest, are treated as a single employment for the purposes of the €1,905 limit.
Does the €1,905 income limit apply to Directors?
No. In the case of directors, all benefits-in-kind are chargeable irrespective of the level of income. Furthermore, an employee who also holds a position as director in the same concern or under any concern within the same group, is liable to income tax and PRSI on any non-cash benefits provided in respect of the employment / directorship whatever the income.
Revenue Commissioners
March 2004