CAN MY SMALL FIRM DO THE IRISH RAIL €500 COUPON THING?
QI read about a trade union calling Irish Rail a ‘grinch’ for giving its staff €500 vouchers that can only be spent in one store (Dunnes Stores). I run a small company with ten staff. I am pretty certain, as private sector workers, they won’t call me names if I give them a €500 Christmas voucher! But why did Irish Rail pick Dunnes? Is there some advantage to the employer – or some catch that has got the workers riled up? And how does this scheme work? Is it completely tax free?
AThe only catch seems to be that you have to spend the voucher in Dunnes. The rail staff were anticipating a One4All voucher, for example, which can be spent in 8,000 outlets. But everybody has to buy groceries and Dunnes is the number one choice for Irish shoppers in this particular market, so I can’t see how anyone would lose by having to spend their voucher there. When asked why they chose Dunnes, Irish Rail said it was the best choice for them based on the criteria of cost, security, national reach and range of products. Our sister newspaper, the Irish Daily Mail reported that Dunnes came in €230,000 cheaper than the next lowest quote after a tender process.
It’s not clear if all companies get the same deal, but there are substantial discounts based on the total value of cards purchased. Here they are: €1,000 – €4,999 = 3% off €5,000 – €9,999 = 4% off €10,000 – €49,999 = 6% off €50,000 – €99,999 = 8.5% off €100,000 and over = 10% off
So even a small company like yours would get a 4% discount, meaning that a taxfree perk of €500 each for ten staff worth €5,000 would cost you €4,800. There is no PRSI or USC on it. Meanwhile, your staff get a tax-free bonus that’s really worth nearly twice what they receive before tax. It’s a no-brainer that every company should provide.
Dunnes says it will assemble orders ‘in an individually personalised presentation pack – free of charge. Gift vouchers are available in denominations of €1, €5, €10, €20 and €50.
You can give employees a non-cash gift, usually vouchers, worth up to €500 with no tax, PRSI or USC due.
The bonus must not be: exchanged in part or in full for cash; part of any salary sacrifice arrangement between the employee and employer; given to any employee more than once in any one year.
QWhat do you think is best comparison site for car insurance?
AI’m not aware of comparison sites as such who compare every insurer but there are online brokers who compare quotes from the insurers they represent. This may not be all of the market but it’s pretty comprehensive. Chill.ie, for example, provides quotes from 16 insurers, or 95% of the total.
QI am on the VHI’s PMI 23 plan. Is this similar to the PMI 43 16 plan you recommended recently. What do the numbers signify?
AWith PMI-type plans, the higher the last two digits are, the newer the plan will be. Newer plans tend to be better. But this is not always the case and there may be variations that are important depending on your individual circumstances. So always check the details of the plan. You can do this on: www.healthinsuranceauthority.ie.
You are certainly on the right track as these oddly named plans are aimed at the highly lucrative company market and therefore they boast all the very latest ‘bells and whistles’.
QI get an income from the UK and have a means-tested pension here. What will happen if sterling goes down further because of Brexit, reducing my ‘means’?
AIf sterling does fall by a lot, the Department of Social Protection says that it ‘will take steps to adjust and re-balance the amounts payable to (means tested) pensioners to minimise the possibility of hardship’.