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Tax Saver Savings

  • 03-10-2019 2:33pm
    #1
    0gac3yjefb5sv7
    Closed Accounts Posts: 3,948 ✭✭✭


    Hi there,

    My brother is wondering whether to go for this.

    He uses DART/bus/commuter and the ticket says 1800 (cost price only 936)

    He pays about 30 a week currently which is circa 1650.

    Is this a no brainer and is it possible to sign up anytime?


Comments

  • #2
    Slippin Jimmy
    Registered Users Posts: 6,031 ✭✭✭Slippin Jimmy


    It all depends on his tax bracket. Some companies have a cut off date for signing up (mine did at least).


  • #3
    0gac3yjefb5sv7
    Closed Accounts Posts: 3,948 ✭✭✭0gac3yjefb5sv7


    Slippin Jimmy wrote: »
    It all depends on his tax bracket. Some companies have a cut off date for signing up (mine did at least).

    It's at 40pc so it says 600 saved he says


  • #4
    SirChenjin
    Closed Accounts Posts: 1,111 ✭✭✭SirChenjin


    First thing he needs to check is, if his employer is signed up to the scheme.

    Some bigger companies offer it, for example, with a sign up date twice yearly - that probably varies, from one employer to another.


  • #5
    Geuze
    Registered Users Posts: 13,035 ✭✭✭✭Geuze


    Pheonix10 wrote: »
    It's at 40pc so it says 600 saved he says

    40% tax relief

    plus 4% PRSI relief

    plus USC relief

    So it's 48.5% relief for many people.


  • #6
    loyatemu
    Registered Users Posts: 14,713 ✭✭✭✭loyatemu


    Geuze wrote: »
    40% tax relief

    plus 4% PRSI relief

    plus USC relief

    So it's 48.5% relief for many people.

    it's 52% if you're on the top rate of USC


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  • #7
    Lynnington3
    Registered Users Posts: 177 ✭✭Lynnington3


    Sorry to hijack this thread but I’m also wondering about going for this...
    My workplace offers it.
    A yearly commuter ticket for me works out at 3920.
    So how much would I save if i opted for this scheme?
    I’m in lower tax bracket.


  • #8
    magicbastarder
    Moderators, Category Moderators, Arts Moderators, Sports Moderators Posts: 48,222 CMod ✭✭✭✭magicbastarder


    you'll only save about 30% of it, unfortunately.
    one way of checking is to fill out this tax calculator, and put your current earnings in, and then try it again with your current earnings, minus the cost of the ticket:

    https://download.pwc.com/ie/budget-2019/income-tax-calculator.html


  • #9
    machaseh
    Registered Users Posts: 777 ✭✭✭machaseh


    My understanding is that the costs of the tax saver ticket are deducted from your salary, meaning that you might pay less tax. This is why I've taken the luas-only tax saver ticket.

    Sadly I recently discovered that the 155 bus gets me into work quicker than the green line, yet I am already paying for the unlimited luas service using my tax saver so it makes no sense for me to take the 155 now. I am now only taking that as a last resort if I'm running late.

    I saw on the company website that the tax saver tickets are yearly and you cannot cancel in the meantime. Does anybody know if this is true? Does this depend on the company or does this depend on the tax saver scheme itself?

    I wouldn't want to pay for unlimited dublin bus + luas, it would be too dear for me and I do not use public transportation enough for me to justify that cost, as I live in the city center anyway.


  • #10
    sharper
    Registered Users Posts: 1,216 ✭✭✭sharper


    machaseh wrote: »
    I saw on the company website that the tax saver tickets are yearly and you cannot cancel in the meantime. Does anybody know if this is true? Does this depend on the company or does this depend on the tax saver scheme itself?

    It can depend on the employer, in some cases they purchase the annual ticket and then charge the employee monthly for it.

    An annual ticket can be cancelled but they refund the remaining number of unused months minus 2 so if your employer paid they don't get the full value back.

    https://www.taxsaver.ie/Commuters/Annual-Ticket-Conditions/Annual-Ticket-Conditions/
    Please note that Annual products are based on a 10 month rate, with two months free and this discount is withdrawn if the ticket is cancelled so the refund/credit is based on the regular monthly rate by the number of months used.


  • #11
    machaseh
    Registered Users Posts: 777 ✭✭✭machaseh


    sharper wrote: »
    It can depend on the employer, in some cases they purchase the annual ticket and then charge the employee monthly for it.

    An annual ticket can be cancelled but they refund the remaining number of unused months minus 2 so if your employer paid they don't get the full value back.

    https://www.taxsaver.ie/Commuters/Annual-Ticket-Conditions/Annual-Ticket-Conditions/

    I dont think my company pays for it, I think I pay for it myself. I dont have such a good job that they'd pay for my transportation ticket, as they also dont pay the fuel of those who come in by car which would be the majority.

    So I suppose that if I cancel it in the meantime for any reason I'll be down 200 quid, then it's hardly a tax SAVER anymore now is it.


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  • #12
    sharper
    Registered Users Posts: 1,216 ✭✭✭sharper


    machaseh wrote: »
    I dont think my company pays for it, I think I pay for it myself. I dont have such a good job that they'd pay for my transportation ticket, as they also dont pay the fuel of those who come in by car which would be the majority.

    So I suppose that if I cancel it in the meantime for any reason I'll be down 200 quid, then it's hardly a tax SAVER anymore now is it.

    I don't mean they pay for it at no cost to you, just that they pay the annual cost and then charge you monthly. If you've already paid the annual cost it doesn't really make any difference to them but if you're paying out monthly then they would lose out.

    Annual tickets have very marginal benefits and rely on the tax break to make it worthwhile. It's basically another subsidy for the various transport companies.


  • #13
    magicbastarder
    Moderators, Category Moderators, Arts Moderators, Sports Moderators Posts: 48,222 CMod ✭✭✭✭magicbastarder


    machaseh wrote: »
    I dont think my company pays for it, I think I pay for it myself.
    you do pay for it in the sense that it comes out of your gross salary, it's not a 'gift' from the company. but they are the ones who actually make the purchase on your behalf. the tax savings come in in that you get the face value of the ticket as 'income' but don't pay tax on this 'income'.


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