1. Schedule E – Employment Income
Basis of Assessment
Tax charged on the earned basis

2. Schedule E – Employment Income
Basis of Assessment
Example
Salary €50,000 for 2015
Bonus of €10,000 for 2015 paid in Feb 2016 with €4,100 PAYE deducted
Income for 2015 is €60,000 (salary plus bonus) when completing income tax computation for 2015
However, the PAYE deducted from the bonus of €4,100 will not be available as a credit in 2015 but in 2016 instead

3. Schedule E – Employment Income
Basis of Assessment
In practice, Revenue accepts the bonus being taxed when paid if the individual is not self-assessed

4. Schedule E – Employment Income
Deductible expenses under Schedule E
In the performance of the duties of the office and employment
Necessarily obliged to incur and defray (travelling expenses)
Wholly, exclusively and necessarily (other expenses)

5. Schedule E – Employment Income
Treatment of expenses
Reimbursed expenses
Flat Rate expenses
Round sum expenses

6. Schedule E – Employment Income
Benefits in kind
Non-cash benefits
Free use of assets
Payment of personal expense

7. Schedule E – Employment Income
Exempt benefits
A subsidised canteen
Monthly bus or train passes
Provision of a bicycle under the bike to work scheme

8. Schedule E – Employment Income
Exempt benefits
Provision of living accommodation where it is necessary to perform the duties of the employment. It is considered necessary where:
The employee is on call outside normal working hours
The employee is frequently called out
Accommodation is provided for quick access to place of work

9. Schedule E – Employment Income
Taxable Benefits in kind
Provision of Motor Car
Provision of Accommodation
Provision of Preferential Loans
Provision of a service or payment of an expense by an employer

10. Schedule E – Employment Income
Provision of a Motor Car
Original Market Value (OMV)
Basic calculation – 30% of OMV
BIK reduced by number of months of the year that the employee has use of the car
No reduction in BIK when employee pays for the running costs of the car
BIK is reduced when employee reimburses employer for running costs

11. Schedule E – Employment Income
Provision of a Motor Car
BIK rate is reduced based on business mileage
0 – 24,000KM %
24,001 – 32,000KM %
32,001 – 40,000KM %
40,001 – 48,000KM %
48,001+KM 6%

12. Schedule E – Employment Income
Employer provided accommodation
Employer is paying rent on behalf of employee then the BIK charge is the rent
Employer owns the house then the BIK is charged on the lower of:
8% of open market value of the property
Vouched rental value of the property
Any additional costs are also a taxable BIK
A contribution from the employee reduces the BIK

13. Schedule E – Employment Income
Preferential loans
The BIK charge is calculated on the difference between the specified rate and the rate charged by the employer.
Specified Rates
Principal Private Residence – 4%
Other – 13.5%
No BIK arises when an employer whose business includes making of loans gives a loan to an employee at a rate less than the specified rates

14. Schedule E – Employment Income
Payment of expense
The BIK charge is the cost of the expense