Paying for rail tickets out of pre-tax salary

albo2002

I've been reading the story on the BBC website about above-inflation rail fare rises for commuters, and in the comments section several people state that they pay, say 8%, of their 'pre tax' salary on commuting.

Does anyone know how this is possible?

I've always paid for my rail tickets out of the net income I receive after tax - it would clearly be more cost effective to pay out of the gross salary.

johnnyreggae

Sorry but I think you're reading it wrong = the reference is to clarify the calculation ie they are paying out of their post tax salary in total 8 % of their pre tax salary eg approx fifteen grand take home from twenty five
grand basic and then spending two grand on fares

albo2002

Thanks Johnny - surely the point is more powerful if you say the percentage of your post tax salary? I dont understand why they're saying 'pre tax' at all.

Thanks again for the clarification.

wealdroam

albo2002 wrote: »

Thanks Johnny - surely the point is more powerful if you say the percentage of your post tax salary? I dont understand why they're saying 'pre tax' at all.

They are using a percentage of pre-tax salary because we all have different tax allowances, a post-tax comparison would be even less meaningful... but as you say, maybe more forceful.