Bike to Work scheme - the Megathread - Read post #1 before posting

Roger.

cython wrote: »

While the intention of the scheme may be solely for provision equipment with a bicycle, that is not what is written.

Hi cython,

Thanks so much for replying, I think this is very clear. As for me and according to the documentation founded on the "Νοtes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2016 Edition - Part 5" documentation that you kindly attached, a person can buy a bicycle or safety equipment. Although an individual has to go to the store and ask if they will do that, though
Not sure if they are even aware of this.

Anyway, cython, thanks so much for your answer.

Best regards.

Roger.

homer911

Good question well answered!

Eamonnator

I have always been under the impression, that you had to buy a bike, when availing of the Bike to Work scheme.

There is a megathread on the subject.
http://www.boards.ie/vbulletin/showthread.php?t=2056382170#

Weepsie

<Mod Voice> Merged threads, and just a warning to not advise people how to abuse the B2W scheme or get around it please

Roger.

Eamonnator wrote: »

I have always been under the impression, that you had to buy a bike, when availing of the Bike to Work scheme.

There is a megathread on the subject.
http://www.boards.ie/vbulletin/showthread.php?t=2056382170#

Hi, Eamonnator.

Yes men I also had that impression too, reason why I wanted to know more about it. I just needed to have in hand the proper regulations and be able to go through it and try to understand them. Law is straightforward but sometimes it may get little bit tricky fro those whom can't understand the real meaning, in this case me. :P

Thank you all for your time and help!

Roger.

schemingbohemia

It's a bit of a waste of an opportunity for a new bike though if you use it just for equipment. You can only use it every 5 years.

rubadub

wally1990 wrote: »

This is not allowed
A bike must be purchased

Background : I work in an accountants and had issues with the revenue with this during audits

I used to think that before re-reading the law. Did auditors actually say this? what were the issues over?

The usual question people have is can they buy wheels or a new groupset. I have never seen anybody just want to buy just safety gear. There is nothing to stop a shop building a bike with a very expensive groupset on a €100 bike.

Roger. wrote: »

Any of you know if a person can use the Bike2Work scheme only to get New equipment, like vest, lights, locks, helmets, etc?

Locks do not seem to be included in the law, which I think is crazy.

On revenues own site they do list them though

http://www.revenue.ie/en/employing-people/what-constitutes-pay/items-not-treated-as-pay/provision-of-bicycles-for-directors-and-employees.aspx

Qualifying bicycles and safety equipment
The following bicycles and equipment can qualify for this scheme:

pedal bicycles and tricycles
pedelecs (electrically assisted bicycle that requires some effort to propel)
cycle helmets covered under European standard EN 1078
bells and bulb horns
lights, including dynamo packs
mirrors and mudguards
cycle clips and dress guards
panniers, luggage carriers and straps
locks and chains
pumps and puncture repair kits
reflective clothing and bicycle reflectors
safety equipment.
The following items are not allowed:

mopeds or scooters
second-hand bicycles or equipment
bicycle parts or associated equipment.

The law says this

‘ 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;

I wonder if this means the revenue list is OK to follow?

loyatemu

it's a tax scheme, I'd say you're safe enough going with Revenue's published interpretation of it.

Kaisr Sose

loyatemu wrote: »

it's a tax scheme, I'd say you're safe enough going with Revenue's published interpretation of it.

Revenue are not great at tax advice or guidance. The SI is the definitive.

IMO the scheme does not prohibit safety equipment on its own. Ultimately, the scheme is administered by your employer. If they will not accept a receipt that does not also show a bike listed, there is not much you can do.

Roger.

schemingbohemia wrote: »

It's a bit of a waste of an opportunity for a new bike though if you use it just for equipment. You can only use it every 5 years.

Hi schemingbohemia, you are right, but then what about the people who has a bike but not the proper safety equipment?

I mean if the Bike2Work scheme only covers bike and new equipment, even though it's nice, still I think exclude some percentage of people who doesn't need a new bike.

Grassey

Roger. wrote: »

I think exclude some percentage of people who doesn't need a new bike.

Always need a new bike!

Hungrycol

Dress Guard? Are we still in the 19th century?

Start buying all that reflective Assos or Rapha clothing and you won't be long filling up €1000!

rubadub

Hungrycol wrote: »

Dress Guard? Are we still in the 19th century?

Start buying all that reflective Assos or Rapha clothing and you won't be long filling up €1000!

I was thinking you could have a good go at spending it if you had nothing and were buying decent stuff, allowed buy off revenues list. I reckon my locks would cost €200-250 in a LBS.

Russman

Sorry if this has been covered earlier, I've searched but I can't see the exact situation, apologies if I've missed it.

My employer is VAT exempt and has the required Form 56B (something like that anyway), would they have to pay VAT on a bike purchase for an employee or would the bike shop be able to issue an invoice ex VAT if we give them a copy of the form ?

Thanks !

secman

Russman wrote: »

Sorry if this has been covered earlier, I've searched but I can't see the exact situation, apologies if I've missed it.

My employer is VAT exempt and has the required Form 56B (something like that anyway), would they have to pay VAT on a bike purchase for an employee or would the bike shop be able to issue an invoice ex VAT if we give them a copy of the form ?

Thanks !

d
It's a bit irrelevant as whatever they pay, they are recovering in full from your gross pay. I imagine they have to pay it as it's not reclaimable even if when the employer is registered for VAT. There is no loss to the employer either way as the amount paid to bike shop is recovered in full.

Kaisr Sose

Russman wrote: »

Sorry if this has been covered earlier, I've searched but I can't see the exact situation, apologies if I've missed it.

My employer is VAT exempt and has the required Form 56B (something like that anyway), would they have to pay VAT on a bike purchase for an employee or would the bike shop be able to issue an invoice ex VAT if we give them a copy of the form ?

Thanks !

I am not an accountant, but it is my understanding that the exemption to paying VAT is for purhases associated with ‘normal/ordinary trade’. It’s not on everything. A bicycle is not a purchase that would fall into normal trade. I don’t believe a cycle shop can supply the goods VAT free, unless it’s for export. VAT must be charged and reclaimed by the purchaser. It’s all in the briefing docs on the workings of the scheme.

The VAT is all irrelevant to you, as you get the relief on the full (and VAT inclusive) price.

Russman

Thanks for the replies guys. Yeah that sounds like its probably correct.

I guess I had been thinking that, in simple terms, if I get relief on a €1,000 bike, if the employer could effectively buy, say, a bike costing €1,230 for €1,000, I'd get a better bike for the same outlay.

But, yeah I can see how, unless the purchase of a bike would be for "normal" trading, the VAT exemption wouldn't work. No worries.

Kaisr Sose

Russman wrote: »

I guess I had been thinking that, in simple terms, if I get relief on a €1,000 bike, if the employer could effectively buy, say, a bike costing €1,230 for €1,000, I'd get a better bike for the same outlay.

That’s what I thought you were thinking . I would do the same if it was the case!

iwillhtfu

Russman wrote: »

Thanks for the replies guys. Yeah that sounds like its probably correct.

I guess I had been thinking that, in simple terms, if I get relief on a €1,000 bike, if the employer could effectively buy, say, a bike costing €1,230 for €1,000, I'd get a better bike for the same outlay.

But, yeah I can see how, unless the purchase of a bike would be for "normal" trading, the VAT exemption wouldn't work. No worries.

I'd guess you'd be subject to BIK if doing it that way

Kaisr Sose

iwillhtfu wrote: »

I'd guess you'd be subject to BIK if doing it that way

Good point, and true. If the bike was bought tax free, technically you could get another €230 worthy of bike and still stay within the €1000.

Russman

Kaisr Sose wrote: »

Good point, and true. If the bike was bought tax free, technically you could get another €230 worthy of bike and still stay within the €1000.

Hmmm, I don't profess to be an expert on BIK, but I'd say that's possibly debatable. In theory, how is it any different to an employer negotiating a discount on the bike with the shop from, say, €1000 to €900, and charging the employee €900 for a €1k bike (which I'd imagine is pretty much par for the course if an intermediary company isn't being used to administer the BTW scheme, surely nobody pays the price on the sticker!)

Anyway this probably isn't the place for a debate on tax !

Kaisr Sose

Russman wrote: »

Hmmm, I don't profess to be an expert on BIK, but I'd say that's possibly debatable. In theory, how is it any different to an employer negotiating a discount on the bike with the shop from, say, €1000 to €900, and charging the employee €900 for a €1k bike (which I'd imagine is pretty much par for the course if an intermediary company isn't being used to administer the BTW scheme, surely nobody pays the price on the sticker!)

Anyway this probably isn't the place for a debate on tax !

I am not disagreeing with your train of thought on maximizing benefit to you. Ultimately, it’s about invoice value. If you can buy a 1.5k bike for 1k, more power to you. There is no BIK. The first issue is VAT. The scheme is set up for purchas by your employer and the shop supplying a VAT invoice. If the total of the invoice is over 1k, you have BIK. It’s all in the details on the scheme. Google for revenue guidelines if you wish to check.

Russman

Kaisr Sose wrote: »

I am not disagreeing with your train of thought on maximizing benefit to you. Ultimately, it’s about invoice value. If you can buy a 1.5k bike for 1k, more power to you. There is no BIK. The first issue is VAT. The scheme is set up for purchas by your employer and the shop supplying a VAT invoice. If the total of the invoice is over 1k, you have BIK. It’s all in the details on the scheme. Google for revenue guidelines if you wish to check.

Likewise, I'm not arguing at all, more taking aloud (or typing !!).

C S

Hello
I work for CBRE in Ireland
Started the process to get a bike on 17/05/2017 it is now 12/12/2017 still no bike
it was final done in November so you could send in your application it is over a month now sitting as approved
The bike I was looking at is gone the only reply I get is "it has been approved"
at this stage I dont know what to do

Dose any body know is there a way to cancel it at this stage and tell them not to go near my pay check ?

Regards
CS

Wishbone Ash

C S wrote: »

Hello
I work for CBRE in Ireland
Started the process to get a bike on 17/05/2017 it is now 12/12/2017 still no bike
it was final done in November so you could send in your application it is over a month now sitting as approved
The bike I was looking at is gone the only reply I get is "it has been approved"
at this stage I dont know what to do

Dose any body know is there a way to cancel it at this stage and tell them not to go near my pay check ?

Regards
CS

You might be better posting in the Bike to Work Megathread as this one is 8 years old:

https://www.boards.ie/vbulletin/showthread.php?t=2056382170

magicbastarder

posts moved

Beasty

C S wrote: »

Hello

Dose any body know is there a way to cancel it at this stage and tell them not to go near my pay check ?

Regards
CS

Over to your employer as it's their scheme that you have signed up to - they don't have to buy the bike, so I would make that suggestion to them

Jayball09

Hi Folks

Little help please. Doing the BTW scheme through TravelHub.ie as my company is based in US

So the bike + accessories comes to 638

Im in the higher earners tax brackets so should be saving 52% right?

My company have the option to pay over 1 or 2 pay cycles (excuse the pun)

Ive chosen 2. 319 end of Jan and 319 end of February

So Im basically paying the full whack, question is, where do I see my savings happen?

Do I get a tax relief to the amount of the savings over those 2 months or 12 months?

Thanks in advance,

Jay

Miike

Jayball09 wrote: »

Hi Folks

Little help please. Doing the BTW scheme through TravelHub.ie as my company is based in US

So the bike + accessories comes to 638

Im in the higher earners tax brackets so should be saving 52% right?

My company have the option to pay over 1 or 2 pay cycles (excuse the pun)

Ive chosen 2. 319 end of Jan and 319 end of February

So Im basically paying the full whack, question is, where do I see my savings happen?

Do I get a tax relief to the amount of the savings over those 2 months or 12 months?

Thanks in advance,

Jay

Yeah it's Tax Relief you see the savings in. At least was for me (state body)

CramCycle

Basically your net pay won't reduce by 319 each month, it will be down by 153euro. There is the saving for you.