Benefit-in-kind (BIK) changes during COVID-19 restrictions

Reimbursement of cost of non-business travel in 2020


This concessionary measure ceased to apply on 31 December 2020. From 1 January 2021 the provisions relating to costs of non-business travel apply in the usual manner.

In 2020, Revenue allowed a concession on the tax treatment of reimbursements by an employer to an employee regarding:

  • holiday and flight cancellations
  • costs of assisting employees returning to the State.

A Benefit-in-kind (BIK) charge will not arise on the reimbursement of these costs. This may include costs related to family members who were on holiday or due to go on holidays with the employee. 

It was subject to the:

  • employee being integral to the business and was required to return to deal with issues related to the COVID-19 crisis
  • costs incurred are reasonable and the employee had not been otherwise compensated (by an insurance policy or direct claim to the service provider).

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