Taxsaver application query

Greyjoy

I'm thinking of getting an annual DB travelwide ticket via the taxsaver scheme rather than messing about with rambler/monthly tickets. On the application form where it asks for the annual cost of the ticket should I list the normal price for the ticket (€1120) or the discounted price via the taxsaver scheme?

Dravokivich

The cost of the taxsaver ticket itself.

Only thing is, you can't apply for it yourself. It has to be done through payroll/hr dept of whoever you work for, so requires them to be registered to the scheme.

Carawaystick

Dravokivich wrote: »

The cost of the taxsaver ticket itself.

Only thing is, you can't apply for it yourself. It has to be done through payroll/hr dept of whoever you work for, so requires them to be registered to the scheme.

This isn't true. The stipulation is that you have to reduce your income by the amount of the ticket; and the employer uses this reduction in your income to purchase the ticket.

So you could buy the ticket, get repaid the cost of the ticket from your employer and reduce your income by the price of the ticket. You are just buying the ticket as an agent for your employer.

schemingbohemia

Carawaystick wrote: »

This isn't true. The stipulation is that you have to reduce your income by the amount of the ticket; and the employer uses this reduction in your income to purchase the ticket.

So you could buy the ticket, get repaid the cost of the ticket from your employer and reduce your income by the price of the ticket. You are just buying the ticket as an agent for your employer.

And as part of a Revenue audit you think this would fly?

LXFlyer

Carawaystick wrote: »

This isn't true. The stipulation is that you have to reduce your income by the amount of the ticket; and the employer uses this reduction in your income to purchase the ticket.

So you could buy the ticket, get repaid the cost of the ticket from your employer and reduce your income by the price of the ticket. You are just buying the ticket as an agent for your employer.

If you read all the conditions laid down on the taxsaver.ie website you will see that this is not allowed.

Only the designated person within each company can order the tickets and this must be done via the company account on the website.

Individuals cannot buy the tickets themselves and claim back.

Victor

Carawaystick wrote: »

This isn't true. The stipulation is that you have to reduce your income by the amount of the ticket; and the employer uses this reduction in your income to purchase the ticket.

There is no absolute need to reduce your income, the ticket can be awarded as a bonus or pay increase.

Carawaystick

lxflyer wrote: »

If you read all the conditions laid down on the taxsaver.ie website you will see that this is not allowed.

Only the designated person within each company can order the tickets and this must be done via the company account on the website.

Individuals cannot buy the tickets themselves and claim back.

The revenue list these conditions:

"There must be a bona fide and enforceable alteration to the terms and conditions of employment (exercising a choice of benefit instead of salary)
The alteration must not be retrospective and must be evidenced in writing
There must be no entitlement to exchange the benefit for cash
The choice exercised (i.e. benefit instead of cash) cannot be made more frequently than once a year and then only with the consent of the employer."

The taxsaver website is run by cie, who are not the most reliable of people. You'll see you can't buy a luas ticket or a say Mathews coaches ticket on taxsaver.ie.

An individual working as an employee for an employer buy a ticket as an agent of the company, otherwise how could the "designated person" get a ticket for themselves?

Victor is right, the ticket can be on top of your salary, but you need to be offered the ticket or the cash price and you need to make a decision in writing.

schemingbohemia

Carawaystick wrote: »

The revenue list these conditions:

"There must be a bona fide and enforceable alteration to the terms and conditions of employment (exercising a choice of benefit instead of salary)
The alteration must not be retrospective and must be evidenced in writing
There must be no entitlement to exchange the benefit for cash
The choice exercised (i.e. benefit instead of cash) cannot be made more frequently than once a year and then only with the consent of the employer."

The taxsaver website is run by cie, who are not the most reliable of people. You'll see you can't buy a luas ticket or a say Mathews coaches ticket on taxsaver.ie.

An individual working as an employee for an employer buy a ticket as an agent of the company, otherwise how could the "designated person" get a ticket for themselves?

Victor is right, the ticket can be on top of your salary, but you need to be offered the ticket or the cash price and you need to make a decision in writing.

So how does the part in bold tally with your earlier statement that an employee can just go off and purchase a ticket and subsequently get their employer to ok it?

The taxsaver site is run by and for the CIE companies, luas have their own section on their website
http://taxsavertickets.luas.ie/

As do Matthews
http://commuter.matthews.ie/index.php?option=com_content&view=article&id=8&Itemid=5

Why should CIE provide free advertising to other operators on their own website?

Dravokivich

Carawaystick wrote: »

This isn't true. The stipulation is that you have to reduce your income by the amount of the ticket; and the employer uses this reduction in your income to purchase the ticket.

So you could buy the ticket, get repaid the cost of the ticket from your employer and reduce your income by the price of the ticket. You are just buying the ticket as an agent for your employer.

(the parts underlined in your response to me) =/= (the parts underlined in another post by you)

Carawaystick wrote: »

The revenue list these conditions:

"There must be a bona fide and enforceable alteration to the terms and conditions of employment (exercising a choice of benefit instead of salary)
The alteration must not be retrospective and must be evidenced in writing
There must be no entitlement to exchange the benefit for cash
The choice exercised (i.e. benefit instead of cash) cannot be made more frequently than once a year and then only with the consent of the employer."

The taxsaver website is run by cie, who are not the most reliable of people. You'll see you can't buy a luas ticket or a say Mathews coaches ticket on taxsaver.ie.

Are you basing your replies entirely on your lack of confidence in CIE?

soupdrinker

A friend of mine avails of the taxsaver ticket - however, as the company he works for does not have an account with Irish Rail (think they applied but didn't get approved for a credit account) so he buys the ticket on his credit card and then gets refunded by the company. He cost of the monthly ticket is then deducted from his gross salary saving him the tax. Is this allowed?

coffeepls

soupdrinker wrote: »

A friend of mine avails of the taxsaver ticket - however, as the company he works for does not have an account with Irish Rail (think they applied but didn't get approved for a credit account) so he buys the ticket on his credit card and then gets refunded by the company. He cost of the monthly ticket is then deducted from his gross salary saving him the tax. Is this allowed?

I think (only think) that this is considered to be a gift to the employee, and as the amount would exceed 150e, then it probably liable for benefit in kind tax. I haven't read the rules on BIK tax in a good while.