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Taxsaver tickets

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  • 16-01-2014 10:30am
    #1
    Pink11
    Registered Users Posts: 723 ✭✭✭


    I need some help with this if anyone could advise I would greatly appreciate it.

    I want to get a monthly rail short hop DART taxsaver ticket.

    I've a few questions. I want to start getting monthly tickets starting from February onwards so:

    1. When do we have to order it? Is there a cut off point? End of Jan? Does it start Feb 1st and end Feb 28th? Or when you buy (even if it's Jan 27th will it last till Feb 27th?)
    2. Feburary is a slightly shorter month.... do I get charged the same?

    I'm so confused!!!


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    #2
    Victor
    Registered Users Posts: 78,281 ✭✭✭✭Victor


    Pink11 wrote: »
    1. When do we have to order it? Is there a cut off point? End of Jan?
    There is a cut off point a few(?) days before the start of the month. Your employer will need to have ordered by then. However, some people run it through their employer's expenses system.
    Pink11 wrote: »
    Does it start Feb 1st and end Feb 28th? Or when you buy (even if it's Jan 27th will it last till Feb 27th?)
    It is calendar months. http://www.irishrail.ie/index.jsp?p=118&n=142#Season%20Tickets
    2. Feburary is a slightly shorter month.... do I get charged the same?
    Yes. It is unlikely though that any other option is cheaper, but do check. What trips do you expect to make.


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    #3
    Pink11
    Registered Users Posts: 723 ✭✭✭Pink11


    I will be travelling from Killester to Grand Canal. So how would that work?

    Sorry I'm really green to this!


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    #4
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    Have you confirmed that your employer is on the Taxsaver scheme? The administrator in your company will advise cut-off dates specific to you.

    Do you ever use the Bus? It's only €22 a month before tax to add on the bus which can be great value if you use the bus even occasionally.


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    #5
    LXFlyer
    Registered Users Posts: 17,558 ✭✭✭✭LXFlyer


    First of all monthly and annual tickets can be bought in two ways:

    1) Direct from Irish Rail
    2) Via your employer, but only if they participate in the Taxsaver scheme (details at www.taxsaver.ie)

    Tickets purchased via the taxsaver scheme will work out substantially cheaper as they will be treated as a deduction from your gross salary (by the cost of the ticket), thereby reducing your PAYE, PRSI and USC.

    Monthly tickets are valid for the calendar month and cost €134 for the rail only option, and cover the entire Dublin Suburban rail network (Balbriggan/Howth/Kilcoole/Maynooth/M3 Parkway/Hazelhatch). If you get it via the taxsaver scheme, then it will work out cheaper after the tax adjustments are made.

    The journey you plan on making (from reading the other thread) is from Killester to Grand Canal Dock.

    If the only journeys that you plan on making are between those stations or those in between, then if you cannot avail of the taxsaver scheme, you ought to be looking at getting a 7 day "point to point" ticket between Killester and Grand Canal Dock, which will allow for unlimited travel between those stations and any in between for 7 consecutive days from the day you first validate it.

    The weekly ticket costs €25.90.

    If you are only going to make 10 trips per week and no others then you should get a LEAP card and use the epurse and pay-as-you-go - that way you will pay €2.35 per trip and €23.50 per week.

    Ultimately, you need to decide how much you will use the train and/or bus and pick the option best for you.


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    #6
    Carawaystick
    Registered Users Posts: 8,779 ✭✭✭Carawaystick


    lxflyer wrote: »
    First of all monthly and annual tickets can be bought in two ways:

    1) Direct from Irish Rail
    2) Via your employer, but only if they participate in the Taxsaver scheme (details at www.taxsaver.ie)

    The employer has to follow Section 118(5A) TCA 1997, taxsaver.ie is a subset of the companies involved.


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    #7
    LXFlyer
    Registered Users Posts: 17,558 ✭✭✭✭LXFlyer


    Carawaystick wrote: »
    The employer has to follow Section 118(5A) TCA 1997, taxsaver.ie is a subset of the companies involved.

    Given that the OP is asking about Irish Rail - all of the details are on that website.

    Quoting legislation really isn't any practical help for someone.


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    #8
    Carawaystick
    Registered Users Posts: 8,779 ✭✭✭Carawaystick


    lxflyer wrote: »
    Given that the OP is asking about Irish Rail - all of the details are on that website.

    Quoting legislation really isn't any practical help for someone.

    http://www.taxsaver.ie/Employers/Order/ implies this is the only way to do it.
    It isn't


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    #9
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    Carawaystick wrote: »
    http://www.taxsaver.ie/Employers/Order/ implies this is the only way to do it.
    It isn't
    Even for CIE tickets? Please share.


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    #10
    Carawaystick
    Registered Users Posts: 8,779 ✭✭✭Carawaystick


    ballooba wrote: »
    Even for CIE tickets? Please share.

    Simplest way is
    Employee of company buys ticket from booking office, pays for it with companies money
    Gives ticket to employee who's gonna use it
    Company permanently reduces payment to employee for the price of ticket.

    Employee buying and employee travelling can be the same person


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    #11
    goingnowhere
    Registered Users Posts: 4,142 ✭✭✭goingnowhere


    Then the employee is hit for BIK as they received a benefit, so they lose the full value of the ticket off their basic and now have to pay BIK on the ticket price.

    If an employee had to travel on behalf of the company then its not BIK, its a normal expense.

    Traveling from home to normal place of work is the employees responsibility.


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    #12
    markpb
    Registered Users Posts: 9,254 ✭✭✭markpb


    Carawaystick wrote: »
    Simplest way is
    Employee of company buys ticket from booking office, pays for it with companies money
    Gives ticket to employee who's gonna use it
    Company permanently reduces payment to employee for the price of ticket.

    Employee buying and employee travelling can be the same person

    Fairly sure that would be fraud. The company would be obliged to charge BIK on the value of the ticket, increasing their income tax although probably still to a lower level than before. It might still work out better (for the employee) than buying the ticket themselves but not as good as participating in the tax saver scheme. For the employer, they're no better off because they don't get the discount on employers income tax that the tax saver scheme gives them.


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    #13
    Carawaystick
    Registered Users Posts: 8,779 ✭✭✭Carawaystick


    markpb wrote: »
    Fairly sure that would be fraud. The company would be obliged to charge BIK on the value of the ticket, increasing their income tax although probably still to a lower level than before. It might still work out better (for the employee) than buying the ticket themselves but not as good as participating in the tax saver scheme. For the employer, they're no better off because they don't get the discount on employers income tax that the tax saver scheme gives them.
    Apart from the whole section 118(5a) of the taxes consolidation act...


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    #14
    markpb
    Registered Users Posts: 9,254 ✭✭✭markpb


    Carawaystick wrote: »
    Apart from the whole section 118(5a) of the taxes consolidation act...

    You're right, my apologies.


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    #15
    Victor
    Registered Users Posts: 78,281 ✭✭✭✭Victor


    Carawaystick wrote: »
    Apart from the whole section 118(5a) of the taxes consolidation act...
    Would you have a link?


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    #16
    Carawaystick
    Registered Users Posts: 8,779 ✭✭✭Carawaystick


    Victor wrote: »
    Would you have a link?

    Revenue outline here
    http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/passes.html

    The basic deal is the employer has to buy it with his money, and reduce the employees gross salary by the same amount.
    And it has to be for a month or more

    How the employer buys the ticket is none of cié business unless it suits


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