On 1 August, Mary furnishes an employee’s apartment with new furniture at no cost to her employee, Catherine. The furnishings, which remained Mary's property, cost €15,000.
The annual value of the use of the furniture is €750. Because Catherine only has use of the furniture from 1 August (five months of the twelve) the annual value must be time apportioned to €312.50 (€750 x 5/12).
Mary adds notional pay of €312.50 to Catherine’s wages over the period 1 August to 31 December. That is €14.42 for each week or €62.50 for each month during the period, for calculating Iincome Tax, PRSI and USC.
For future years, notional pay of €750 must be added to Catherine's wages for calculating Income Tax, PRSI and USC. (€14.42 per week or €62.50 per month)