In Ireland, you can reward employees with tax-free gifts under Revenue's Small Benefit Exemption, as long as you stay within its value and count limits. This article explains the current rule and shows 12 gift ideas that fit comfortably within it.
The Small Benefit Exemption: €1,500 across up to 5 benefits
Since 1 January 2025, employers can give each employee non-cash benefits worth up to €1,500 in total per year, spread across a maximum of 5 separate benefits, free of income tax, USC, and PRSI. This is a significant increase from the previous €1,000/2-benefit limit that applied from 2022–2024. The rule sits in Section 112B TCA 1997.
- Must be non-cash. A qualifying benefit is a voucher or tangible item — if it's a voucher, it can't be redeemable in full or in part for cash.
- Can't be part of salary sacrifice. The benefit can't be provided in place of salary the employee would otherwise have received.
- Performance awards are allowed. Unlike some similar schemes elsewhere, Revenue explicitly permits exceptional-performance awards to qualify for the exemption, as long as the usual conditions (non-cash, under the value cap, no salary sacrifice) are met.
If a single benefit exceeds €1,500, the full value of that benefit becomes taxable, not just the excess. If more than 5 benefits are given in a year, only the first 5 (in chronological order) can qualify for the exemption — any further benefits are fully taxable. Unused allowance can't be carried over to the following year.
Long service awards: a separate concession
Ireland also has a distinct concession for long service awards, administered separately from the Small Benefit Exemption. To qualify: the award must be a tangible item (not a voucher, bond, or cash), cost no more than €50 per year of service, the employee must have at least 20 years' service, and no similar award can have been given to that employee in the previous 5 years.
12 gift ideas within the exemption
1. Hoodie – The Rex: the flagship piece
A heavyweight 280 gsm organic cotton hoodie employees actually wear, and one of the most popular gifting items in the catalogue.
- Material: 90% organic cotton, 10% polyester.
- Branding: embroidery, print, or patches.
- Order: MOQ 100 · from €40.09/unit.
2. RollTop Backpack: the everyday bag
A water-resistant backpack with a laptop compartment that quickly becomes someone's everyday bag.
- Material: GRS-certified recycled PU, water-resistant.
- Branding: print or embroidery.
- Order: MOQ 25 · from €24.57/unit.
3. Noise-Cancelling Headphones: the premium pick
A higher-end gift that comfortably fits within the generous €1,500 exemption.
- Material: recycled ABS, ANC + ENC, foldable.
- Branding: digital print or doming.
- Order: MOQ 50 · from €24.46/unit.
4. Bodywarmer – The Logan: the technical layer
A technical piece that works equally well as a long service award or a team event gift.
- Material: water-repellent shell, insulated fill.
- Branding: embroidery.
- Order: MOQ 25 · from €37.66/unit.
5. Bamboo Tea Bottle: the natural choice
A bamboo exterior over a durable stainless steel interior, a warmer alternative to an all-metal bottle.
- Material: stainless steel, bamboo.
- Branding: laser engraving or print.
- Order: MOQ 50 · from €18.70/unit.
6. A5 Notebook: FSC-certified paper
An A5 hardcover with elastic closure and ribbon marker, practical with a traceable material story.
- Material: FSC-certified paper, PU cover.
- Branding: debossing or print on the cover.
- Order: MOQ 100 · from €4.58/unit.
7. Premium Tote Bag: the lightweight carry
A heavyweight cotton tote with a premium feel, everyday enough to actually get used.
- Material: 270gsm cotton.
- Branding: print or custom straps.
- Order: MOQ 100 · from €6.44/unit.
8. Knitted Scarf: the cosy extra
A high perceived-value item, ideal for a winter or year-end gift.
- Material: 80% viscose, 20% polyester.
- Branding: woven label.
- Order: MOQ 100 · from €7.66/unit.
9. Recycled Steel Bottle: everyday hydration
Vacuum insulation in recycled stainless steel, a gift that gets used and seen every day.
- Material: recycled stainless steel.
- Branding: laser engraving or print.
- Order: MOQ 50 · from €11.00/unit.
View the Recycled Steel Bottle →
10. Wireless Powerbank: useful everyday tech
A magnetic wireless powerbank in recycled ABS plastic, genuinely useful for any commute or business trip.
- Material: recycled ABS plastic.
- Branding: pad print or digital print.
- Order: MOQ 50 · from €18.39/unit.
11. Baseball Cap: the everyday accessory
An affordable, highly visible accessory that works all year round.
- Material: 100% cotton.
- Branding: embroidery.
- Order: MOQ 100 · from €8.34/unit.
12. Sports Socks: the safe favourite
Sunday's most-ordered item, a small, unexpected gift that always lands well.
- Material: 80% cotton, 17% polyamide, 3% elastane.
- Branding: knitted-in logo zones.
- Order: MOQ 100 · from €4.00/unit.
What about gifts to clients?
Client and business-contact gifts in Ireland follow much stricter rules than employee gifts. Under Section 840 TCA 1997, gifts to non-employees are treated the same as business entertainment: not deductible for corporation tax, with no branded-item exception like the one that exists in UK tax law. For VAT, Section 21 VATCA 2010 sets a threshold of €20 (excluding VAT) per gift: below that, no output VAT is due; above it, VAT is due on the full cost, not just the excess, and this concession doesn't apply to a series of gifts to the same person. Input VAT on goods bought for gifting is generally recoverable under normal rules.
Want more ideas? Browse the full list in 20 tax-free gift ideas for employees in Ireland.
Common mistakes
- Assuming the old €1,000/2-benefit limit still applies. Since 2025, the exemption is €1,500 across up to 5 benefits.
- Giving a 6th benefit and assuming it's covered. Only the first 5 benefits given in the year (chronologically) can qualify; anything beyond that is fully taxable.
- Assuming Irish client-gift rules mirror the UK's. Ireland has no branded-item deductibility exception for client gifts, and its VAT threshold (€20/gift) works differently from the UK's (£50/person/year).
Note: this article is a general explainer, not tax advice. Thresholds and rules can change — confirm how they apply to your business with your accountant.
Order gifts for your team
Every product above is fully customisable with your branding and available in business order quantities. Browse the full range in the Sunday catalogue to put together a gift that stays within the exemption.
