The Small Benefits Scheme
One of the advantages of being an Independent Professional Contractor is that you are eligible to avail of the Small Benefit Scheme.
Under the Small Benefit Scheme, Professional Contractors who operate through their own Personal Limited Company or an Umbrella Company can receive a non-cash payment of up to €1,000 each year, absolutely tax free! This non-cash payment has been increased to €1,500 in Budget 2025 starting in the new year!
As the payment must be non-cash, the most common way to avail of the scheme is through purchasing a voucher.
Vouchers offer a flexible way to pay for things you were likely to buy anyway. There’s no restriction on the store or service for which the voucher can be purchased.
A maximum number of two vouchers can be purchased in any one year. The total value of which may not exceed €1,000. However, from 2025 the total value may not exceed €1,500 due to the budget 2025 increase.