Use of facilities (sports, recreational, childcare and car-parking)
Sports and recreational facilities
Employers may provide sports and recreational facilities at work for employees.
Facilities provided on your premises
If the facilities are available to all employees, this is not a benefit in kind (BIK).
If the facilities are only available to certain employees, this is a BIK. The employees who have the use of these facilities are chargeable on the benefit under the Pay As You Earn (PAYE) system to:
Calculation of the taxable benefit
To calculate the value of the benefit, the cost of providing the facility should be divided between the employees who are allowed to use it. Employers should not charge an employee who does not wish to, and does not use, the facilities provided.
Corporate membership paid by employer
If employers pay a corporate subscription to sports or recreational facilities for employees, this is a taxable benefit. Employees must pay Income Tax, PRSI and USC on this benefit.
Calculation of the taxable benefit
To calculate the value of the benefit, the cost paid by employers should be divided equally among the employees for whom membership has been paid.
For further information, please see Section 25 of the Tax and Duty Manual Part 05-01-01L.
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