tax credits for cycle to work scheme

thebourke

I recently got a bike through the cycle to work scheme.
The bike cost 380euro which the company I work for are taking the payments back over a year (7.30 approx per week).
I am curious to how this works..
I am paid on a weekly basis..do they subtract the 7.30 first of all from my gross salary before i am taxed on the remainder...is this correct?

Chips Lovell

thebourke wrote: »

I am paid on a weekly basis..do they subtract the 7.30 first of all from my gross salary before i am taxed on the remainder...is this correct?

Yes

Doctor Bob

thebourke wrote: »

do they subtract the 7.30 first of all from my gross salary before i am taxed on the remainder...is this correct?

It can be a used as a salary sacrifice from your gross pay over a period of no greater than one year.

http://wiki.boards.ie/wiki/BikeToWork

Wheety

thebourke wrote: »

I recently got a bike through the cycle to work scheme.
The bike cost 380euro which the company I work for are taking the payments back over a year (7.30 approx per week).
I am curious to how this works..
I am paid on a weekly basis..do they subtract the 7.30 first of all from my gross salary before i am taxed on the remainder...is this correct?

I got one too and I'm paying €9.50 a week. It comes out at the very base of your wage so you don't pay tax or PRSI on that bit.

It brought me back under the threshold for the health levy so my take home pay actually went up when I started paying for the bike

thebourke

on your payslip does it actually say the 9.50 a week as a deduction..
on mine it says the 7.30 per week but this is added with my pension contribution+prsi+tax to give my total deductions..
then this figure is subtracted from my gross salary per week
this can;t be right...can it?

Rob_l

thebourke wrote: »

on your payslip does it actually say the 9.50 a week as a deduction..
on mine it says the 7.30 per week but this is added with my pension contribution+prsi+tax to give my total deductions..
then this figure is subtracted from my gross salary per week
this can;t be right...can it?

no it doesn't seem right, however, that may just be the way your pay slip is printed.

I suggest you go and talk to your pay roll section or whoever sorts out your payslip they can help a lot more in your specific case!

Wheety

On my payslip, it has my gross pay and under that it has -9.50.

Then my tax credits and finally my taxable pay (Gross-€9.50-Tax credits).

I pay tax and PRSI on the rest.

Wheety

thebourke wrote: »

on your payslip does it actually say the 9.50 a week as a deduction..
on mine it says the 7.30 per week but this is added with my pension contribution+prsi+tax to give my total deductions..
then this figure is subtracted from my gross salary per week
this can;t be right...can it?

The deduction for the bike should come out before other deductions, otherwise you're not saving tax and PRSI on it.

concussion

Wheety wrote: »

I got one too and I'm paying €9.50 a week. It comes out at the very base of your wage so you don't pay tax or PRSI on that bit.

It brought me back under the threshold for the health levy so my take home pay actually went up when I started paying for the bike

Superb. However, wait for the headlines on a slow news day along with all the associated complaining over on motors/AH

"Pilfering pedallers dodge health levy"

Wheety

But before I paid for the bike I got an increment of around €20 a week. It brought me over the threshold so my takehome pay went down by €7. That wasn't fair so i had too even it out a bit.

When I got the increment my PRSI went from €14 to €35.