Annual Travel pass scheme

billyhead

Hvae a query about how much tax relief you are entitled to on the annual travel save work pass for say Dublin Bus. If say in my sistuation I am on the lower rate for 3/4 of my gross in come and the top rate of tax for a 1/4 of my wages does that mean that for a DB annual pass costing €1120 per year I will have to pay approx 550 per year out of my wages after tax or is it I will have tax relief at the lower rate on 3/4 of the €1120 cost and then tax relief at the top rate on 1/4 of the cost i.e over a year I would only save around 350?

goingnowhere

Its deducted at source so if the salary after deduction is above your cut off point for the higher rate you get the relief at the higher rate

kc56

billyhead wrote: »

Hvae a query about how much tax relief you are entitled to on the annual travel save work pass for say Dublin Bus. If say in my sistuation I am on the lower rate for 3/4 of my gross in come and the top rate of tax for a 1/4 of my wages does that mean that for a DB annual pass costing €1120 per year I will have to pay approx 550 per year out of my wages after tax or is it I will have tax relief at the lower rate on 3/4 of the €1120 cost and then tax relief at the top rate on 1/4 of the cost i.e over a year I would only save around 350?

Tax Saver is done by salary sacrifice; i.e. it is deducted from your Gross salary BEFORE tax.

The savings are more like 52% as it include tax at 42% and USC, PRSI etc.

AlekSmart

kc56 wrote: »

Tax Saver is done by salary sacrifice; i.e. it is deducted from your Gross salary BEFORE tax.

The savings are more like 52% as it include tax at 42% and USC, PRSI etc.

This factor is often overlooked in the equation....the savings are VERY impressive when this menu of stoppages is included.

However,Taxsaver ticket availability really does need to be put on a compulsory footing with ALL employers being required to provide the relevant access !

bk

AlekSmart wrote: »

However,Taxsaver ticket availability really does need to be put on a compulsory footing with ALL employers being required to provide the relevant access !

Or better yet the scheme is centrally managed by the revenue department and thus open to all employees.

The Cycle to Work scheme should be similarly administrated.

AlekSmart

bk wrote: »

Or better yet the scheme is centrally managed by the revenue department and thus open to all employees.

The Cycle to Work scheme should be similarly administrated.

Agreed.

When I read,so often these days,of various Ministers extolling the virtues of streamlining IT systems and of getting Government Dept's to interact more effictively,I then look at the Taxsaver situation.....

A fantastic ethically sound method of redirecting Tax-Euro's in a targeted manner to maximum benefit,and it's optional....:rolleyes:

As bk sez,Taxsaver involves The Revenue Commissioners at it's very core,and yet they cannot make the small administrative effort to put the scheme on a universal footing..?

If the DSP can universally administer c 740,000 Free Travel Scheme passes with such supreme efficiency,why the hell can't the Revenue Commissioners facilitate people wishing to make a contribution !!!!