Bike to Work Employer signup how ??

fatboypee

Hi all, simple quick question, does anyone know what an employer needs to do to sign up to the Bike to Work scheme ? I've got my employer to agree but need to ge tthe bike so what are the formalities ? does anyone know ?

Thanks

fbp

Morgan

They don't have to "sign up" to anything - they just buy the bike and can deduct the cost from your salary.

More in the Wiki:
http://wiki.boards.ie/wiki/BikeToWork

Beasty

The salary sacrifice arrangements are probably the most "formal" aspect of the scheme. Essentially the employee needs to agree in writing to forego part of his/her salary in return for the bike

It's probably best if the employer does circulate to staff it's own scheme rules, so employees understand how that employer will apply the scheme (whether bikes can be purchased from any retailer for example)

fatboypee

thanks for the help and replies. Such a small company, employer only needs to tell me & 1 other just wanted to make it seamlessly simple for the company (basically need to get going on this ASAP)... thank again..

fbp.

mike12

Hi,
Just make sure that when they deduct the money back off you it reduces your taxable pay so they get the prsi relief and you get the tax and prsi releif.
Mike

fatboypee

Hi all

Sorry to drag this up but I've a simple question that I'm a bit confused about?

Does this scheme cost my employer money ? (I know I'm thick so apologies in advance). I'm just a bit confused as to how it works in terms of Taxation offsets ?

For example:

My boss buys the bike. He then sets up a chargeback on my salary for whatever percentage I have to pay of the bike. How does he get the rest of the cost of the bike back ? or doesn't he?

Sorry again for being thick, boss is asking lots of Q's before handing over the cheque and I'm not confused..

fbp

Chips Lovell

fatboypee wrote: »

My boss buys the bike. He then sets up a chargeback on my salary for whatever percentage I have to pay of the bike. How does he get the rest of the cost of the bike back ? or doesn't he?

You pay the full cost of the bike. Your boss pays nothing.

The saving is that you don't pay income tax on what you pay for the bike.

Plazaman

You'll get all the info here

http://www.bikescheme.ie/downloads/infopack.zip

mike12

The full amount should be deducted back thru your payroll reducing your taxable and PRSIable pay thats how you get the saving your tax and prsi should be lower each payslip it also reduces the amount of Employer PRSI so your boss makes a saving 10.75% on the cost of the bike as he is paying a lower amount on each of your payslips. Clear as Mud.

fatboypee

el tonto wrote: »

You pay the full cost of the bike. Your boss pays nothing.

The saving is that you don't pay income tax on what you pay for the bike.

I kindof understand this but please bear with me:

Boss pays (in my case) €785 for the bike and sets up a chargeback on my salary of €785 now I pay monthly over 10 months €78.5 less whatever tax I would have paid on this ?

In this case, as the company paid the full €785 for the bike, yet I only pay 785 less the top-rate tax, how does the employer then get the rest of the money back? As in, they paid out 785 I'm only paying back 785 - tax = boss out of pocket by the remainder no ??

Or am I utterly stupid ?

Thanks

fbp.

Chips Lovell

fatboypee wrote: »

Boss pays (in my case) €785 for the bike and sets up a chargeback on my salary of €785 now I pay monthly over 10 months €78.5 less whatever tax I would have paid on this ?

In this case, as the company paid the full €785 for the bike, yet I only pay 785 less the top-rate tax, how does the employer then get the rest of the money back? As in, they paid out 785 I'm only paying back 785 - tax = boss out of pocket by the remainder no ??

No, the taxman is out of pocket for the remainder.

Put it like this. Say you get paid €40k per year. You decide to buy a bike under the scheme for €1K. Your employer still pays you €40K, but you only pay tax on €39K. The money you pay back is out of your gross salary, not your net.