The Ticketscheme encourages commuters to use public transport thereby contributing to lowering carbon emissions and reducing traffic congestion, through the purchase of tax-free annual commuter tickets.
Ticketscheme enables employees to get a bus, train or ferry ticket Tax, PRSI and USC free, saving up to 52% (average savings are between 28.5% - 48.5%) on the cost of their chosen travel ticket. Employers can also make a saving of 10.75% on Employer PRSI on each application.
What is the Ticketscheme?
Ticketscheme exempts employees and directors from benefit-in-kind taxation for 1999/2000 and subsequent tax years where an expense has been incurred by an employer on the provision of an annual bus, train, Luas or ferry pass for the employee or director which operate within the State in respect of journeys which begin and end in the state. The exemption does not extend to car parking charges and does not allow the purchase of combined travel pass ticket, which includes car-parking charges.
Ticketscheme gives you the opportunity to sacrifice part of your salary in return for an annuall Commuter Travel Pass. To take part in the Ticketscheme you will need to agree to reduce (sacrifice) an agreed amount of your salary for a set amount of time in return for a Commuter Travel Pass from our selected suppliers.
Your employer will initially purchase the Commuter Travel Pass for you. You will then pay back your employer the cost of the Commuter Travel Pass through a salary sacrifice deduction in your salary on a monthly basis. But you do not effectively pay the full amount as you make your savings under the scheme as you don’t pay Income Tax, PRSI or Universal Social Charge on the price of the Commuter Travel Pass so you can save up to 52% on the retail price (depending on your marginal tax rate.) Please see the savings grid below for an example of how much you can save.
Read the Revenue terms and conditions: http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/passes.html
Benefits to the Employee:
- Employees can save up to 52% on travel costs as a result of Tax, PRSI and USC savings
- There is no longer any need to queue on a daily basis for bus or rail tickets.
- Prepaid tickets are cheaper than paying cash so reduce the cost of travelling to work
- Can be combined with the Cycle to Work scheme so employees can combine their travel
- No car parking or petrol costs
- Relax on your journey to and from work