Taxsaver Dart Ticket

PCros

I'm just wondering how much if any I would save if I opted for the Taxsaver scheme for the short hop Dart @ €1,520 per year.

I am on 36.5k and currently pay €116 per month with the 7 day ticket (still need to get a LEAP card regardless)

The tax at 20% and 40% is where I am unsure of final costings.

Thanks in advance.

schemingbohemia

https://www.taxsaver.ie/Ticket-Calculator/Ticket-Calculator/

You'll have to check when the higher rate of tax kicks in. Do you use the Dart at the weekends at all? Do you use Dublin Bus at all (the additional cost is not much more) one thing to keep in mind is that the DB ticket also works on Nitelink and Airlink if you're likely to use those services at all it can be worthwhile including the DB ticket as well.

PCros

Hi schemingbohemia thanks for the reply.

That's the thing, I'm confused about when the higher rate kicks in and if this has an effect.

I really only use it Mon-Fri to and from work - I rarely ever use DB.

schemingbohemia

http://services.deloitte.ie/tc/

Your P60 or your local HR should be able to advise you but put details in above and it should help determine. If you're on the lower rate the cost benefit might not be as good. But essentially you get 12 months for the cost of 10 months so there should be savings. Your company will also save.

PCros

So about 15% of my salary falls under the 40% bracket and the rest under the 20% bracket.

Not sure as you can only work it out by either picking one of them.

skeogh82

PCros wrote: »

So about 15% of my salary falls under the 40% bracket and the rest under the 20% bracket.

Not sure as you can only work it out by either picking one of them.

I don't think you understand how this ticket works. If you pay any PAYE at the higher rate you receive the tax relief for the ticket at the higher rate....they don't pro rate it between what you pay in 20% and 40% tax

skeogh82

Basically the net cost of the ticket to you will be c.€775 (including tax reliefs and assuming you do pay 40% tax, 4% prsi and 5% USC ) a year - so a significant saving on what you currently pay.

You can check out the calculator on their website to be sure....

cython

skeogh82 wrote: »

I don't think you understand how this ticket works. If you pay any PAYE at the higher rate you receive the tax relief for the ticket at the higher rate....they don't pro rate it between what you pay in 20% and 40% tax

Actually, in essence that's exactly what they do - similar to the cycle to work scheme, you purchase the ticket out of your gross salary, and are thus not taxed on a portion of your gross to the value of the ticket. If, however, the sacrifice brings you below your standard rate cutoff, then you save the full whack on the amount above that point, and you save a lesser amount on the remainder that is below the standard rate cutoff.

@OP, simply put, will deducting the price of the ticket from your gross bring your gross below your standard rate cutoff? If yes then you will save a "blended" rate, if no, then you will save the full whack.

skeogh82

cython wrote: »

Actually, in essence that's exactly what they do - similar to the cycle to work scheme, you purchase the ticket out of your gross salary, and are thus not taxed on a portion of your gross to the value of the ticket. If, however, the sacrifice brings you below your standard rate cutoff, then you save the full whack on the amount above that point, and you save a lesser amount on the remainder that is below the standard rate cutoff.

@OP, simply put, will deducting the price of the ticket from your gross bring your gross below your standard rate cutoff? If yes then you will save a "blended" rate, if no, then you will save the full whack.

I never knew about the blending - I always thought it was either one or the other - if you fell below the cut off 20% relief and above the cut off 40%....either way it's unfair to lower earners but that's beside the point. They don't mention anything about blending on their website.

cython

skeogh82 wrote: »

I never knew about the blending - I always thought it was either one or the other - if you fell below the cut off 20% relief and above the cut off 40%....either way it's unfair to lower earners but that's beside the point. They don't mention anything about blending on their website.

Their savings calculator is overly simplistic in that respect, in that it assumes that it is an either/or of discrete quantities. Though to be fair for the vast majority it probably is an either/or, but the realities of how the relief are granted (i.e. by means of it being paid from your gross, as opposed to a defined percentage relief like health insurance premiums) mean that it can (for people who are above their standard rate cutoff by less than the ticket price) be a saving of an intermediate percentage.

Losty Dublin

€100 a year more gets you a year's worth of travel and no need to top up and stop at shops etc. Add in your tax relief and you will be €10-€15 a week better off as well. An added perk of Taxsaver are cheaper fares on Irish Rail mainline services.

robbiezero

Losty Dublin wrote: »

€100 a year more gets you a year's worth of travel and no need to top up and stop at shops etc. Add in your tax relief and you will be €10-€15 a week better off as well. An added perk of Taxsaver are cheaper fares on Irish Rail mainline services.

Not any more.