Paying for an annual ticket monthly

zag · 10-09-2007, 19:47

I got this from the ticketing pages of the main Platform11 website - "Through the Easi Travel Plan you can pay for an annual ticket by a direct monthly deduction from your salary which receives tax relief at up to 41% at source, all of a sudden what was good value is now excellent."

Can anyone confirm whether this is an official scheme or not ? I haven't been able to track details down and when our payroll people were asked they indicated that this might be seen as an interest free loan by the Revenue since you are getting €800-odd worth of ticket at the start of the year and only paying for it bit by bit as the year goes on.

They already handle my annual ticket through the payroll and I get tax relief on it, but it would be nice if I didn't have to shell out for an entire years transport from one months salary. I think the payroll people were just saving themselves the hassle to be honest, and that I should be able to pay monthly.

Does anyone have details of the arrangement by which you can pay monthly - is it an approved Revenue arrangement ?

Thanks,

z

Mark Gleeson · 10-09-2007, 20:00

Paying monthly is at the discretion of your employer, it is allowed for by the revenue

zag · 10-09-2007, 20:12

Mark,

Thanks for the confirmation. Do you have any references for that - I have a feeling I know what payroll will say if I go up to them and say "My mate Mark says it's allowed".

My cunning plan is to hint subtly (but clearly) at HR and my manager that it would be cool if I could spread the cost over the year. The cost to the company would be minimal and the advantage to each of the employees would be significant. I know the company itself will think it is a good idea and would most likely be prepared to make it happen once I can get past payroll.

Once HR/manager are agreed and think it sounds like a win-win and get me to go off and find the details I will be able to point payroll to the reference. If they try to wriggle out of supporting it I will point HR/manager at the details and they can lean on payroll. Sounds like a plan . . .

z

Mark Gleeson · 10-09-2007, 20:46

The way it work is your employer must reduce your salary by the value of the ticket and that the terms and conditions state this, you get tax relief on the ticket

I know of plenty of people who pay monthly, it really depends on the company, obviously it might not go down well in a small company as the ticket must be paid up front by the company

Colm Donoghue · 10-09-2007, 21:04

You get prsi off also so it's 47% reduction. The carrot for your employer is they don't pay employers prsi on the cost of the ticket they deduct from your payroll. this is about 12-13%, which should cover the financial cost to the company.

What I've done is buy the ticket as an agent of the company, submit an expense claim to get the cost back. At this stage the company has bought the ticket. then sign a salary deduction form to get the cost deducted from your salary.

What your payroll people think doesn't matter, Revenue ses it's ok. if your payroll people under paid your paye, ther'd be no issue of them caring or paying. it would be between you and revenue.

This scheme is as far as I'm aware the only useful tax reduction scheme for paye employees with no strings attatched.

markpb · 10-09-2007, 21:30

Quote:

Originally Posted by Mark Gleeson

Obviously it might not go down well in a small company as the ticket must be paid up front by the company

Zing.

I work for a medium company and they're not interested in the scheme at all, regardless of how employees pay them back *sigh*

James Shields · 10-09-2007, 23:06

The total cost of the ticket has to be paid up front. If your employer is willing to spread your payments over the year, that's between you and your employer. I work for a large company, and they won't, so I have to take the hit in a single month. I either put a bit aside for a couple of months beforehand, or work some overtime so it's not so bad...

10-09-2007, 19:47	#1
zag Regular Poster Join Date: Oct 2006 Posts: 199	Paying for an annual ticket monthly I got this from the ticketing pages of the main Platform11 website - "Through the Easi Travel Plan you can pay for an annual ticket by a direct monthly deduction from your salary which receives tax relief at up to 41% at source, all of a sudden what was good value is now excellent." Can anyone confirm whether this is an official scheme or not ? I haven't been able to track details down and when our payroll people were asked they indicated that this might be seen as an interest free loan by the Revenue since you are getting €800-odd worth of ticket at the start of the year and only paying for it bit by bit as the year goes on. They already handle my annual ticket through the payroll and I get tax relief on it, but it would be nice if I didn't have to shell out for an entire years transport from one months salary. I think the payroll people were just saving themselves the hassle to be honest, and that I should be able to pay monthly. Does anyone have details of the arrangement by which you can pay monthly - is it an approved Revenue arrangement ? Thanks, z

10-09-2007, 20:00	#2
Mark Gleeson Technical Officer Join Date: Dec 2005 Location: Coach C, Seat 33 Posts: 12,669	Paying monthly is at the discretion of your employer, it is allowed for by the revenue __________________ Unhappy with new timetable - let us know

10-09-2007, 20:12	#3
zag Regular Poster Join Date: Oct 2006 Posts: 199	References Mark, Thanks for the confirmation. Do you have any references for that - I have a feeling I know what payroll will say if I go up to them and say "My mate Mark says it's allowed". My cunning plan is to hint subtly (but clearly) at HR and my manager that it would be cool if I could spread the cost over the year. The cost to the company would be minimal and the advantage to each of the employees would be significant. I know the company itself will think it is a good idea and would most likely be prepared to make it happen once I can get past payroll. Once HR/manager are agreed and think it sounds like a win-win and get me to go off and find the details I will be able to point payroll to the reference. If they try to wriggle out of supporting it I will point HR/manager at the details and they can lean on payroll. Sounds like a plan . . . z

10-09-2007, 20:46	#4
Mark Gleeson Technical Officer Join Date: Dec 2005 Location: Coach C, Seat 33 Posts: 12,669	The way it work is your employer must reduce your salary by the value of the ticket and that the terms and conditions state this, you get tax relief on the ticket I know of plenty of people who pay monthly, it really depends on the company, obviously it might not go down well in a small company as the ticket must be paid up front by the company __________________ Unhappy with new timetable - let us know

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10-09-2007, 21:04	#5
Colm Donoghue Really Regular Poster Join Date: Dec 2005 Posts: 873	You get prsi off also so it's 47% reduction. The carrot for your employer is they don't pay employers prsi on the cost of the ticket they deduct from your payroll. this is about 12-13%, which should cover the financial cost to the company. What I've done is buy the ticket as an agent of the company, submit an expense claim to get the cost back. At this stage the company has bought the ticket. then sign a salary deduction form to get the cost deducted from your salary. What your payroll people think doesn't matter, Revenue ses it's ok. if your payroll people under paid your paye, ther'd be no issue of them caring or paying. it would be between you and revenue. This scheme is as far as I'm aware the only useful tax reduction scheme for paye employees with no strings attatched.

10-09-2007, 23:06	#7
James Shields Member Join Date: Dec 2005 Location: Drogheda, Ireland Posts: 1,275	The total cost of the ticket has to be paid up front. If your employer is willing to spread your payments over the year, that's between you and your employer. I work for a large company, and they won't, so I have to take the hit in a single month. I either put a bit aside for a couple of months beforehand, or work some overtime so it's not so bad...