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Tax saver low earner

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  • 11-04-2017 10:39pm
    #1
    richy
    Registered Users Posts: 502 ✭✭✭


    Hi,

    I an trying to work out if it's worth it to get the tax saver luas/dart ticket. Basically, they only do the yearly one in work and I will only be in Dublin for 5 months. I am a student so got the dart student monthly ticket for the first month so will only need pass for 4 months.

    Work said I can cancel after 4 months and I would be refunded the rest. Can someone tell me how much it would cost me per month. The ticket is 1800 for 12 months so 150 per month before tax saver scheme. How much would it be afterwards. I am only earning 19k. The website doesn't allow me change usc or prsi rate to reflect what mine is. Also, not sure what it should be myself as I haven't got paid yet but presumably lower than what they have. Single, no child tax credits etc. Thanks


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    #2
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,922 Mod ✭✭✭✭L1011


    Deleted my old post as it doesn't stack up due to a quirk

    The ticket will, if I'm doing tis right, bring you under the PRSI threshold meaning the savings are disproportionately large. You're looking at the ticket costing about 620 in total - for the year. PRSI has no allowances meaning when it kicks over a threshold you get hit in all income

    Normally it's not worth it on very low incomes but if revenue allow this, it certainly is.

    Cancelled tickets are refunded as if 10 monthly tickets I think so you lose some there


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    #3
    Oiriallach
    Registered Users Posts: 102 ✭✭Oiriallach


    I think it would cost you 180 euro per month for the 4 months, so 720 euro in total (that's if you cancel it after 4 months). The monthly rate is one tenth of the annual rate. If you keep the ticket for the full year you pay for the first 10 months and the last 2 months are free. As far as I know, if you cancel the ticket there are no refunds and no additional charges as you will have been paying for it monthly at the rate of 10% of the annual cost.

    If you cancel the ticket after 4 months your income tax/USC/PRSI for the year would then be calculated based on a salary of 18,280 rather than 19,000. That's worked out by subtracting the total cost of your ticket (720 euro) from your actual salary. If you keep the ticket for the full year your effective salary for tax purposes would be 17,200 euro.


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    #4
    Victor
    Registered Users Posts: 78,308 ✭✭✭✭Victor


    https://www.taxsaver.ie/Commuters/Annual-Ticket-Conditions/Annual-Ticket-Conditions/
    Cancelling Annual Tickets
    Iarnród Éireann/Dublin Bus

    Please note that Annual products are based on a 10 month rate, with two months free and this discount is withdrawn if the ticket is cancelled so the refund/credit is based on the regular monthly rate by the number of months used.

    Your Annual ticket/card must be returned to Iarnród Éireann/Dublin Bus from your employer by Registered Post or Courier no later that 5th of the month.

    If you cancel your DART/Commuter Rail, Dublin Bus Only, Short Hop Rail & Dublin Bus, Rail & Luas or Dublin Bus & Luas ticket/card before ten months have expired then you may be due a refund on your ticket.

    If you cancel your Point-Point Intercity ticket before ten months have expired then you may be due a refund.
    Annual Tickets purchased through the taxsaver Commuter Scheme normally have employer conditions that can vary from company to company. It is advisable to seek clarification with your company administrator before seeking a refund.

    Refunds on Annual Tickets will be calculated as follows: The cost of the appropriate Monthly Ticket multiplied by the number of months used is deducted from the amount paid for the Annual Ticket. There is no administration fee involved.


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    #5
    jahalpin
    Registered Users Posts: 1,031 ✭✭✭jahalpin


    With the maximum weekly cap for Dublin Bus, Luas and DART currently set at 30euro for students, you would be better off just using your student leap card than messing around with a tax saver ticket, you also have the added benefit of being able to use Dublin Bus services


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