The Finance Act 2022: Changes You Need to Know in 2023

Last year, the Finance Act 2022 was signed into law, and employers should be aware of certain things, such as an increase in the amount of qualifying vouchers employers can offer.

For the upcoming year, here are some changes employers need to know:

1. The Small Benefits Exemption

As of 2022, the annual limit for the Small Benefits Exemption was raised from €500 to €1000. The number of vouchers employers can offer each year has also been increased from one to two as part of this change.

2. Employer Reporting Requirements

The small gift exemption, travel and subsistence expenses, and the remote working daily allowance of €3.20, are all benefits employers are required to record and report to Revenue. The format and manner in which these benefits will be reported are subject to the commencement order and Revenue's guidance.

3. Bike to Work Scheme

As of 2023, the Bike to Work scheme will include cargo bicycles and e-cargo bicycles, reducing the threshold of tax-free benefits to €3,000.

4. Covid-19 Related Lay-Off Payment Scheme (CLRP)
Beginning in 2022, the Covid-19 Related Lay-Off Payment Scheme (CLRP) will be tax-exempt. As a result of Covid-19 related restrictions on layoffs, these payments are available to individuals who lost the opportunity to accrue reckonable service as a result of layoffs under the Redundancy Payments (Amendment) Act 2022. Those affected by this change include:

(a) those made redundant since 13 March 2020, or by 31 January 2025; and

(b) Those who were laid off during the COVID-19 restrictions from 13 March 2020 to 31 January 2022 but lost the opportunity to build reckonable service.