Taxsaver IE

Crann na Beatha

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snappieT

No drawbacks as far as I can tell. You only get the greatest benefit if you're on the higher tax rate. Different companies allow different types of tickets. For me, only an annual ticket was available, and it gets paid off over 2 months of payslips, so the cost isn't neatly spread out over the year but I can deal with that for effectively €7.50/wk Luas.

Victor

Not every employer participates. Tickets must be for at least a month's duration.

Carawaystick

Depending on how you are paying for it you could be stuck with a large cost of the ticket if your company goes bust or you are made redundant
Also if you are in a pension scheme your contributions and salary details will be lower

Weyhey

Carawaystick wrote: »

Also if you are in a pension scheme your contributions and salary details will be lower

Can some explain a bit more about this to me or give me an example?

Victor

Weyhey wrote: »

Can some explain a bit more about this to me or give me an example?

Some pension schemes may be based on cash income, not cash+other benefits.

Example:

Tom, Dick and Harry work in a bank.

Harry will get a company pension of 50% of salary when he retires. His salary is €50,000, but that includes benefits-in-kind of €1,000 for a low rate bank loan. As Harry's pension scheme is based on the cash element of his package only, his pension is 50% of €49,000 = €24,500.

Dick will get a company pension of 50% of salary when he retires. His salary is €50,000, but he does a salary sacrifice of €1,000 to buy a Taxsaver ticket. As Dick's pension scheme does discount the ticket, his pension is 50% of €49,000 = €24,500.

Tom will get a company pension of 50% of salary when he retires. His salary is €50,000, but he does a salary sacrifice of €1,000 to buy a Taxsaver ticket. As Tom's pension scheme doesn't discount the ticket, his pension is 50% of €50,000 = €25,000.