Taxsaver Scheme

Fruit1985

I'd like for someone to confirm that I've interpreted the TaxSaver scheme correctly please.

--- Normal Leap Card (No Tax Saver) ---

I will spend €4.10 each day (2 * 2.05€ trips) * 20 working days a month = 82euro a month

--- Monthly Dublin Bus Travelwide Leap Card ---

I will pay €132 a month but get taxed €68.64 less as taxable income has now dropped. (I am on USC of 7% and taxed at higher band 41%.)

In reality - taxsaver ticket costs me (€132.00 - €68.64) = €63.36. I will save €18.64 a month by opting in to taxsaver. (€82 - €63.36)

Is this analysis correct?

LXFlyer

Yes, that is more or less correct, but will not allow for holidays.

And of course having the monthly ticket means you can travel whenever you want, and not just the two trips a day.

On a pedantic point, the leap card is just that - a card. It is not a ticket. You can load a ticket onto it and it can be used in epurse mode. You can load up to five different ticket products onto a single card.

Mrs OBumble

Do you ever use public transport on the weekend? Or to go out in the evening? These trips would be totally free with TaxSaver, maybe free for weeknights with LEAP capping (I think).

Personally I think that BE will be very very surprised when they finally manage to track how many buses I catch on my Taxsaver each week :-)

Black_Knight

Yearly tax saver gets you 2 free months, doesn't it? Spread the payments over 12 months and it's cheaper

HamsterFace

This is the most recent taxsaver thread so hope that it's ok that I use it

Basically, I have the annual ticket and am leaving my current employer half-way through. The contract, the T&Cs which I didn't bother reading to be fair, did state that if I was to leave mid-way I would have to pay the entire balance.

This is €130 a month! It's going to cost me nearly €800 and what's worse, it is taken directly from your net as opposed to your gross. My employers have said that there is nthing they can do, it's in the T&Cs, and I know caveat emptor of course, but I don't think I can absorb this...

And of course I could get a brand new one at my new employers taken monthly from my gross.

Has anyone been in a similar situation and manage to get the ticket cancelled or refunded??

Thanks!

Carawaystick

The ticket money should be taken from your gross income if its a tax saver ticket.
See here

quote=revenue]
The employee will not be chargeable to tax on the remuneration sacrificed;[/quote]

You agreed to sacrifice your salary for the ticket, and the balance of the sacrifice is taken as you leave the company.

Contact revenue to get them to confirm to your employer this.
If your employer takes the balance from your net, they will have to pay prsi of about 80 , and you will probably not recover the employee bit, and they won't get the employer bit.

Black_Knight

I looked into this vaguely before. I assume you're paying monthly out of your payslip. Are you paying 1/12 the total cost every month, or 1/10 the total cost? I ask because the annual ticket gives you 2 months for free, and if you cancel your tax saver ticket early you forgo those 2 free months.

eg. Lets make an assumption that the annual ticket costs 1300. You're 6 months into your annual ticket, and lets assume you're paying 1/10 the total cost every month (ie. the last 2 months are free) and thats €130 per month (total of 1300 for the annual ticket. If you cancel now, you have not received any benefit from the annual card, and from what I read, there's no problem canceling, and im 99% sure there's no cancelation fee or anything.

IF you were on month 11 and you canceled, you'd owe €130, because technically you got 11 single monthly taxsaver tickets.

If you had been paying 1/12 of the annual ticket price (total of €1300 gives us €108 a month), then you would owe revenue, since you're getting the discount spread across the 12 months. 6 months at the discounted 108 is €650, but without the discount its €780. So you'd owe revenue €130.

Some info here:
http://www.taxsaver.ie/Commuters/Annual-Ticket-Conditions/Annual-Ticket-Conditions/

OTNiner

HamsterFace wrote: »

This is the most recent taxsaver thread so hope that it's ok that I use it

Basically, I have the annual ticket and am leaving my current employer half-way through. The contract, the T&Cs which I didn't bother reading to be fair, did state that if I was to leave mid-way I would have to pay the entire balance.

This is €130 a month! It's going to cost me nearly €800 and what's worse, it is taken directly from your net as opposed to your gross. My employers have said that there is nthing they can do, it's in the T&Cs, and I know caveat emptor of course, but I don't think I can absorb this...

And of course I could get a brand new one at my new employers taken monthly from my gross.

Has anyone been in a similar situation and manage to get the ticket cancelled or refunded??

Thanks!

Hi

This may be of some use - similar situation. Company should be able to cancel ticket and get a refund of the remaining months - this was in mid 2011.

Iarnrod Eireann tickets cannot be suspended, they can be returned by the company administrator for refund.
Please read the conditions below for cancellations;

Information on credits/refunds

The ticket should be returned to us by the 5th of any month with a letter on headed notepaper requesting a refund/credit from the administrator of the scheme. The passenger will be charged for each month he has used.
The annual ticket is charged over 10 months with 2 months free travel on it, so if 7 months travel has been used credit of 3 months will be refunded.
The ticket should be returned by courier/reg post to;
Grainne Barnwell
Sales Department
Connolly Station
Dublin 1.
Some companies have their own terms and conditions so the above should be clarified with the administrator.

Regards,
Gráinne Barnwell
Sales Office
Irish Rail

 Mail: Connolly Station (black door at corner of Amiens St & Sherrif St) Dublin 1.
 Phone: 01 7034172
 E-mail: grainne.barnwell@irishrail.ie
For further information on TaxSaver click on www.taxsaver.ie