Voluntary Contribution to reduce my PAYE?

T

The Oggster

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This week I got an increment in work of around €20 a week but my take home pay has gone down over €7 a week. This is because I have just crossed the threshold for the Health Levy.

Are there any Voluntary Contributions I can make to reduce my PAYE? Someone in work suggested this to me but I can't find anything about it.

I've also signed up to the cycle to work scheme and should be getting my bike soon so I will start paying for that. Will that bring me back under the threshold?
 
You need to ensure your net taxable pay (gross pay less any allowable deducts like pensions) is less than €500 per week to not be liable for the Health Levy. The cycle to work scheme will definitely reduce your net taxable pay but you need to ensure you spent enough on the bike to reduce your net taxable pay below €500 so in this case the more expensive the bike the better. To work this out take the cost of the bike divide it by 52 if paid weekly or by whatever if you have a different pay schedule. Subtract this figure from your gross weekly pay and if it's less than €500 (along with any other allowable deductions) you won't be liable to the health levy.

Additional Pension contributions are also another way of reducing net taxable pay as are Travel Pass schemes -Yearly bus and rail tickets bought by your employer on your behalf.
 
You might find my spreadsheet (taxcalc.eu/monthlyss) useful to run your figures through.

If you download it and need to check something re using it feel free to either email me using the address given in the spreadsheet or send a PM here.
 
Had another look at my payslip. My Gross taxable pay is €500.95. Not even a Euro over the threshold!! :mad:

My payment for the bike to work scheme is €7.50 a week so that will bring me under.

The GF has the tax saver bus ticket and that comes off her base pay before anything else so should be the same with my bike.

So, I'll start paying for the bike over the next couple of weeks and my take home pay will actually go up :confused:
 
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