Refund travel card

HouseBuyer10

Registered User
Messages
47
Hi there
I bought a yearly travel card through my job in 2020 and after the pandemic started I applied for a refund for the months I didn't use the travel card.
I've just been told that I have received a refund. This was added to my gross salary, which resulted in me paying more PRSI, PAYE and USC.
Does that make sense or should the refund have been added to my net salary?
I'd be grateful if someone could help with this.
Thank you.
Liliana
 

Cervelo

Registered User
Messages
764
When you paid for the travel card was it from gross pay(salary sacrifice) or net pay??
 

nephster

Registered User
Messages
24
Hi there
I bought a yearly travel card through my job in 2020 and after the pandemic started I applied for a refund for the months I didn't use the travel card.
I've just been told that I have received a refund. This was added to my gross salary, which resulted in me paying more PRSI, PAYE and USC.
Does that make sense or should the refund have been added to my net salary?
I'd be grateful if someone could help with this.
Thank you.
Liliana
Yup, this is the whole point of the Taxsaver system done as salary sacrifice, you are effectively paying something like half price for the ticket as it comes out before tax. When you get a refund, it goes back on to your gross salary and hence you only get around half back as an increase in your net salary. And probably less than that as there are a certain amount of "free" months on the annual card. I did exactly the same at the end of last year and it was quite the tiny amount after all those deductions :(

Basically, it you had received that extra money at the time instead of it of going on the card you would have been taxed this amount then, and only got the far smaller amount added to your net.
 
Last edited:

howdyrawn25

New Member
Messages
1
Annual Travelcards must have had at least six weeks of validity remaining, and monthly cards seven days, as of the last day you travelled. You can also get a refund of any outstanding pay-as-you-go credit on your Oyster.
 
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