Ryan O'Meara (Tipperary North, Fianna Fail)
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45. To ask the Minister for Finance in cases where an employer does not participate in the TaxSaver scheme, the options available to a commuting employee; his plans to implement changes or policy that may allow commuting employees to avail of the benefits provided by this scheme; and if he will make a statement on the matter. [14386/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 118(5A) of the Taxes Consolidation Act 1997 (TCA) provides an exemption from benefit-in-kind (BIK) where an employer purchases a travel pass for an employee. This is commonly known as the Taxsaver scheme. Under section 118B TCA, an employer and employee may also enter into a Revenue-approved salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for the benefit.

It is important to note that employers are not required to take part in the Taxsaver scheme. Where an individual's employer does not participate, any benefits that could arise under the scheme will not be available to any employees of that employer.

However, by way of incentive, if an employer does participate in the scheme, they will also save money as employer’s PRSI is not payable on the cost of the relevant benefit(s) when they make the associated deduction from their employees' salary payments.

While the Taxsaver scheme is kept under review by my officials, at present I do not have any specific plans to amend this scheme.

However, in response to the Deputy’s query about alternative options which may be available to commuting employees, it is worth noting that section 118(5G) TCA provides for the Cycle to Work scheme. That scheme offers an exemption from BIK where an employer purchases a bicycle and/or associated safety equipment for one of their employees (or directors) to use, in whole or in part, to travel to work. Associated safety equipment may include items such as helmets, lights, bells, mirrors and locks. Further information on the Cycle to Work scheme is available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-01g.pdf