Use of facilities (sports, recreational, childcare and car-parking)
Crèche and childcare facilities
You may provide childcare facilities for your employees.
Employer-provided facility
If you provide free or subsidised childcare facilities at work for your employees, this is a benefit in kind (BIK). An employee is chargeable on the benefit, under the Pay As You Earn (PAYE) system, to:
The value of the benefit for tax purposes is the cost of providing the facility, including insurance, maintenance and suchlike. It also includes the cost of providing childcare services such as salaries and other expenses.
Independent facility
If you pay or subsidise the cost of an independent crèche or childcare facility for your employees, this is a BIK. Employees must pay Income Tax, PRSI and USC on this benefit.
If you make a block payment to a crèche or a childcare facility, this is a BIK. The employees which use the facility must pay Income Tax, PRSI and USC on this benefit.
The value of the benefit should be divided between the employees which use the facility. This benefit is taxable and should be based on the number of children each employee has.
For further information, please see Section 5 of the Tax and Duty Manual Part 05-01-01L.
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