Tax breaks on bikes

RobFowl

The details of this were supposed to be published in the finance bill today. Has any one heard how its going to work ?

penexpers

Finance Bill is coming out tomorrow?

Chips Lovell

Yes, it's tomorrow. But most of the details have been published already.

copacetic

didn't see full details, but apparently it will be voluntary for employers and work like the taxsaver ticket scheme.

How they will make it work like that is anyones guess since it appears it would be 10 times as complicated.

Standard Toaster

http://worldwidecyclesblog.com/2008/10/22/1000-euro-cycling-incentive-explained/

RobFowl

Saw this in the Irish examiner today . God help us if these are the ones lobbying for pro-bike policies !
http://www.irishexaminer.ie/irishexaminer/pages/story.aspx-qqqg=ireland-qqqm=ireland-qqqa=ireland-qqqid=77949-qqqx=1.asp

Tawny

Whatever way it works - will it be a lot of hassle for employers?

christeb

Am I correct in thinking the employer buys the bike and it works from there.

Also - I take it that the bike can be purchased from anywhere (UK etc...)?

Ghost Rider

I wonder will used bikes be included...?

Chips Lovell

christeb wrote: »

Am I correct in thinking the employer buys the bike and it works from there.

Yes, the employer buys the bike. It is then either treated as a tax free benefit in kind for the employee, or the employee repays the employer from their wages and doesn't have to pay tax on it.

christeb wrote: »

Also - I take it that the bike can be purchased from anywhere (UK etc...)?

That's what I've been told by the Department of Finance, yes.

christeb

Sounds good, I'll start thinking about my new rig for 09 now. Surely there'll be a sticky thread with "Best Tax Break Bikes" appearing soon...

davidsatelle100

wonder what will happen when someone wants to buy a bike for €1500.

Chips Lovell

christeb wrote: »

Sounds good, I'll start thinking about my new rig for 09 now. Surely there'll be a sticky thread with "Best Tax Break Bikes" appearing soon...

I don't think I'd ever be able to avail of it because my days of buying a full bike are long gone. I'd be buying a frame and building it up from there and it only applies to complete bikes.

davidsatelle100 wrote: »

wonder what will happen when someone wants to buy a bike for €1500.

I didn't ask about that, but I assume that you could and would only get tax relief on the first €1,000.

Bambaata

ive just bought a new bike and paid for half of it. Here's hoping when i pay the remainder in January i can avail of this

Vélo

Is it definite it has to be a complete bike?

Chips Lovell

Aquinas73 wrote: »

Is it definite it has to be a complete bike?

That's what I was told. I asked could you use it for parts like a frame or wheels and they said no. (And yes, the idea of getting cheap Boras was at the back of my mind when I asked).

Vélo

I sent an email to cyclesuperstore last week and they said I probably could but they're waiting for confirmation. Looks like I'll have to build my own and buy a new one. My wife is on the books also so I'll have to get her a bike too!

TinyExplosions

el tonto wrote: »

That's what I was told. I asked could you use it for parts like a frame or wheels and they said no. (And yes, the idea of getting cheap Boras was at the back of my mind when I asked).

I read somewhere (can't find it now) that there was a long list of what's allowed on this scheme, and I think it included pedals and stuff, so maybe a frame is possible!

Vélo

Last year I started slowly getting parts together for building a MTB. I have everything so far except the groupset and I was thinking of sending it in to get done and claim it through the cycle to work scheme. If I do it that way I could justify getting an XTR groupset.

Chips Lovell

TinyExplosions wrote: »

I read somewhere (can't find it now) that there was a long list of what's allowed on this scheme, and I think it included pedals and stuff, so maybe a frame is possible!

I don't know, maybe they changed it, but the day after the budget, that's what they told me. I did get a list of stuff from them, but it was all safety equipment like helmets and lights and high viz gear.

DirkVoodoo

TinyExplosions wrote: »

I read somewhere (can't find it now) that there was a long list of what's allowed on this scheme, and I think it included pedals and stuff, so maybe a frame is possible!

I think "bells" were also listed on that

Chips Lovell

DirkVoodoo wrote: »

I think "bells" were also listed on that

Well in that case, feck the Boras, I'm getting a bell.

TinyExplosions

el tonto wrote: »

Well in that case, feck the Boras, I'm getting a bell.

a 1000 euro bell... nice!

RobFowl

Can you get a carbon fibre bell ??

BTW the finance bill is being published at 3.00 and is a live stream on RTE if anyone is desperate to find out whats allowed.

DirkVoodoo

A carbon fiber bell you say, noiseless and lightweight..hmmm, I reckon we could sell loads of them to gullible fashionistas

Chips Lovell

It's on the website now:

7.—(1) Chapter 3 of Part 5 of the Principal Act is amended—
(a) in section 118 by inserting the following after subsection
(5F):
20 ‘‘(5G)(a) Subject to paragraph (c) of this subsection, subsection
(1) shall not apply to expense of up to
€1,000 incurred by the body corporate in, or
in connection with, the provision for a director
or employee of a bicycle or bicycle safety
25 equipment, where—
(i) the bicycle and bicycle safety equipment
provided is unused and not second-hand,
(ii) the director or employee uses the bicycle
or bicycle safety equipment, or the bicycle
30 and the bicycle safety equipment, as the
case may be, mainly for qualifying journeys,
and
(iii) bicycles or bicycle safety equipment, or
bicycles and bicycle safety equipment, as
35 the case may be, are made available
generally to directors and employees of
the body corporate.
(b) In this subsection—
‘bicycle’ means a pedal cycle;
40 ‘bicycle safety equipment’ includes—
(i) bicycle bells and bulb horns,
(ii) bicycle helmets that conform to European
product safety standard CEN/EN 1078,
(iii) bicycle lights, including dynamo packs,
(iv) bicycle reflectors and reflective clothing;
and
(v) such other safety equipment as the
Revenue Commissioners may allow; 5
‘normal place of work’ means the place where
the director or employee normally performs the
duties of his or her office or employment;
‘pedal cycle’ has the same meaning as it has in
section 3(1) of the Road Traffic Act 1961, and 10
does not include an electrically assisted pedal
cycle;
‘qualifying journey’, in relation to a director or
employee, means the whole or part of a
journey— 15
(i) between the director’s or employee’s
home and normal place of work, or
(ii) between the director’s or employee’s normal
place of work and another place of
work, where the director or employee is 20
travelling in the performance of the
duties of his or her office or employment.
(c) A director or employee shall not, by virtue of
this subsection, be relieved from a charge to
income tax under subsection (1) more than 25
once in any period of 5 consecutive years of
assessment, commencing with the year of
assessment in which the director or employee
concerned is first provided with a bicycle or
bicycle safety equipment.’’, 30
(b) in section 118B—
(i) in subsection (1) in the definition of ‘‘salary sacrifice
agreement’’ by substituting ‘‘ ‘salary sacrifice
arrangement’ ’’ for ‘‘salary sacrifice agreement’’,
(ii) in subsection (2)— 35
(I) in paragraph (a)(i) by deleting ‘‘and’’ and in
paragraph (a)(ii) by substituting ‘‘section
510(4), and’’ for ‘‘section 510(4),’’, and
(II) by inserting the following after paragraph (a)(ii):
‘‘(iii) a bicycle or bicycle safety equipment pro- 40
vided to a director or employee and
which is exempt from a charge to tax by
virtue of section 118(5G),’’,
and
(iii) in subsection (5) by substituting ‘‘salary sacrifice 45
arrangement’’ for ‘‘salary sacrifice agreement’’.

That's the question answered about second hand bikes so.

penexpers

el tonto wrote: »

It's on the website now:



That's the question answered about second hand bikes so.

And electrically assisted bikes.

Vélo

It's actually ridiculous that you can't buy a 2nd hand bike. I've no plans buy 2nd hand but if they really want people to cycle to work it shouldn't matter whether the bike is new or not.

Chips Lovell

Aquinas73 wrote: »

It's actually ridiculous that you can't buy a 2nd hand bike. I've no plans buy 2nd hand but if they really want people to cycle to work it shouldn't matter whether the bike is new or not.

I'd say its more of a compliance issue. Wouldn't be much of an audit trail in second hand sales, so more possibility for fraud.

Vélo

Which website was that on?

Vélo

el tonto wrote: »

I'd say its more of a compliance issue. Wouldn't be much of an audit trail in second hand sales, so more possibility for fraud.

Good point. It would be great to buy a bike for €50 and say it cost €1000 all the same.