Refund scheme for commuter tickets being considered by NTA

Tax relief on the costs of working from home, a refund of some portion of commuter travel tickets and even a possible rebate on car insurance could be on the cards for stay-at-home workers.

The National Transport Authority (NTA) has said it is “actively working” to achieve a solution to the problem of commuters having paid for monthly or annual travel tickets which they are unable to use during the current restrictions.

The NTA said it was “very aware of the current situation regarding Taxsaver tickets and is actively working to identify the most efficient and effective range of solutions for customers.”

It is understood the authority has asked the main transport providers, Irish Rail, Bus Éireann, Dublin Bus and Go Ahead to examine how such solutions would be put in place.

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US pay backs

The authority was responding after Fianna Fáil TD for Dún Laoghaire Cormac Devlin called on the Government to relax the rules surrounding the Taxsaver Commuter Scheme during the on-going Covid-19 crisis.

Mr Devlin said the Government should Government “ introduce practical solutions like allowing commuters pause their contributions until the Covid-19 crisis passes, or adding two or three free months at the end of this year’s contract.”

Actual cash refunds are in place around the world as evidenced by Allstate, a major car insurer in the US, which is to pay back more then €550 million in refunds to customers stuck at home during coronavirus lockdowns.

Another insurer, American Family Mutual, has begun to pay back more then €183 million in premiums to isolating car owners.

The insurance companies are financing the rebates out of a massively reduced claims experience, following a dramatic drop in the number of vehicles on the roads.

A spokeswoman for Insurance Ireland could not immediately say if the insurance industry here would follow suit, although she did point to a statement from the industry that it was open to discussing deferred payment solutions with those who were financially strapped due to the coronavirus lockdown.

Under existing legislation it is up to individual car owners to pause their insurance at any time. A no claims bonus generally stays valid for two years, meaning those who pause insurance can pick it up again later without a severe penalty.

Many families - especially two car families - may consider it worthwhile to pause insurance on at least one of the cars.

Word of caution

The idea comes with a word of caution however, as cars sitting in driveways would no longer be subject to fire or theft benefits.

Another source of refunds is the Revenue who will allow stay-at-home workers to claim €3.20 a days for costs such as heat and light.

Joanna Murphy, chief executive of tax refund specialists taxback.com said that employers can pay €3.20 a day to any staff member to cover these additional power, heating and broadband costs.

The payment is tax free, including from PRSI and universal social charge. While, there is no legal obligation for an employer too make the payment, employees can claim it from the Revenue themselves.

Ms Murphy added that even if a company does reimburse the employee, they can still claim tax relief from Revenue on any actual cost incurred that exceeds the €3.20 daily limit.