Half of taxpayers are unaware of two key government programs to help cover travel expenses

The cost of living crisis has been a source of concern for households across the country as families try to save money wherever they can.
However, a recent survey found that half of Irish taxpayers are unaware that there are two government schemes which can help cover the cost of daily travel to and from work and, with the cost of fuel rising, the schemes could allow you to realize enormous savings.
The Taxback.com survey found that half of taxpayers are unaware of the Taxsaver Commuter Ticket and the Cycle to Work Scheme.
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Of more than 1,200 taxpayers surveyed, only 5% said they used both regimes.
(Image: gettyimages.ie)
The Cycle to Work scheme was introduced in 2009 to provide a tax incentive scheme to encourage employees to cycle to work.
Under this program, an employer can pay for a new bicycle (including bicycle accessories), with the employee then reimbursing the cost in regular installments from their gross salary.
The Taxsaver ticket dates back even further to 1999, encouraging people to use public transport to get to and from work.
The cost is deducted directly from your gross salary and can mean huge savings ranging from 31% to 52% on the normal price of a travel ticket – whether by bus, train or Luas thanks to tax savings, PRSI and USC, and depending on your tax bracket.
Speaking about the results, Barry Cahill, director of Taxback.com’s Employee Financial Wellness Department, said: “It’s a surprise that up to 49% of taxpayers don’t know what these aids are and that only 5% of workers use both. A slightly higher percentage use the Cycle to Work program (10%) as opposed to the transport ticket (3%), but these are very low figures.
“The pandemic and the rise of remote working may understandably have had an impact on the number of people using these programs – simply because there is less travel involved. However, these are two well-established services, and we would like to see more people take full advantage of the significant savings they offer.”
He added: “Employers have a role to play in ensuring their employees are aware of and, importantly, can access these important money-saving measures.
“Essentially all company employees are eligible to participate in the Taxsaver scheme, as long as transport tickets are requested and provided by the employer, and with Bike to Work – all employees who use their bikes for eligible journeys, i.e. all or part of a journey between your home and your usual place of work – can request it from their employer once every 4 years.However, a third of the respondents to our survey do not did not think they were eligible for either of these programs, which may not be the case.
The Taxback.com survey also asked whether the government should introduce more tax breaks or incentives around commuting to work to cut costs.
Mr Cahill commented: “The overwhelming majority (67%) voiced calls for reform in terms of the type and amount of state support to help reduce the cost of travel for all workers.
“This is particularly timely given the cost of fuel for transport as well as efforts to reduce the number of cars on our roads for environmental reasons. do more, but only for low-income employees, as they are disproportionately affected by travel costs. Only 6% believe that the Taxsaver Commuter Ticker and Cycle to Work programs are sufficient on their own.”
Recent statistics from the Department for Transport show that 73.3% of journeys in Ireland in 2019 were made by car, with work and education being the main reasons. However, only 6.5% of trips were made by public transport.
Mr Cahill said: “If people are still so dependent on their cars, it stands to reason that they will not find significant relief in an incentive based on public transport; perhaps an intervention on fuel prices or similar would have more impact for motorists in this regard.
“However, there is more focus on upgrading our national public transport network and infrastructure in line with our climate commitments, and so we could see public transport and bicycle-based tax incentives become more popular and see greater uptake of these programs by workers moving forward.”
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