Third Party Benefits
- General
- Cash / Perquisites provided by third parties
- Cars and vans provided by third parties
- Benefits other than above provided by third parties
General
Where a benefit provided to an employee by a third party (who is not that employee's employer) gives rise to a charge to income tax, the provider of the benefit is responsible for accounting for the PAYE/PRSI. Where a third party has doubts as to his or her obligations to deduct PAYE/PRSI on benefits provided, the full facts should be sent to the local revenue office dealing with that employer or third party.
Cash / Perquisites provided by third parties
In general cash or perquisites provided by a third party arising from or in connection with an employment or office will be within the charge to income tax.
Cars and vans provided by third parties
A car or a van which is provided by a third party by reason of an employee's employment or a director's office which is available for private use will give rise to a charge to income tax and accordingly PAYE and PRSI apply.
Benefits other than above provided by third parties
Generally, benefits other than those specifically mentioned above which are provided by a third party will not give rise to a charge where:
- the provider of the benefit and the employer of the individual are not connected, either directly or indirectly, in any way, and
- there is no reciprocal arrangement or scheme in place between the third party and the employer or anyone connected with the employer, and
- the employer of the individual has not incurred, either directly or indirectly, any expense in relation to the benefit.