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

magicbastarder

jive wrote: »

Is there any recourse if I buy it and then try to claw it back after

no, because the way the scheme works is your employer buys it for you and deducts the cost out of your gross salary.

jive

magicbastarder wrote: »

no, because the way the scheme works is your employer buys it for you and deducts the cost out of your gross salary.

Thanks, was only up to speed on ‘bike to work’ after reading about it, not realising it was distinct from ‘cycle to work’ until finding this thread.

I’m buying the bike at the end of the month so I’ll see if I can get any traction with them. Might try hunt someone in finance down rather than HR..

jive

CramCycle wrote: »

Worth asking, it's actually very little work extra, particularly a small company.

Any idea of what’s involved just so I don’t look like a total buffoon when I do follow up on this next week?

Crocked

jive wrote: »

Any idea of what’s involved just so I don’t look like a total buffoon when I do follow up on this next week?

Its just a payroll adjustment and company possibly setting a new supplier on their system.

The problem really for big companies is setting suppliers up on their systems. Can be all sorts of hassle getting a new supplier authorised and setup, may not even be possible for local office to do it.

LollipopJimmy

jive wrote: »

Thanks, was only up to speed on ‘bike to work’ after reading about it, not realising it was distinct from ‘cycle to work’ until finding this thread.

I’m buying the bike at the end of the month so I’ll see if I can get any traction with them. Might try hunt someone in finance down rather than HR..

In my experience hunting finance is the better option. HR will be taking guidance from them.

Bribe them with donuts

Irish94

Hoping someone can answer my query. In September last year, I availed of the Cycle to Work Scheme to the value of €1250. I agreed a 'salary sacrifice' over an agreed time of 12 months with my employer. Since then, €104.16 has been taken out of my monthly paycheck. Is this correct?

(12 months) * (€104.16) = €1249.92

I'd appreciate if anyone could confirm this.

I'm struggling to understand if it is - why would I not just purchase the bike and accessories itself to save me the hassle of getting my employer to purchase the bike and accessories? I don't see the benefit of the scheme.

Thanks in advance!

iwillhtfu

Irish94 wrote: »

Hoping someone can answer my query. In September last year, I availed of the Cycle to Work Scheme to the value of €1250. I agreed a 'salary sacrifice' over an agreed time of 12 months with my employer. Since then, €104.16 has been taken out of my monthly paycheck. Is this correct?

(12 months) * (€104.16) = €1249.92

I'd appreciate if anyone could confirm this.

I'm struggling to understand if it is - why would I not just purchase the bike and accessories itself to save me the hassle of getting my employer to purchase the bike and accessories? I don't see the benefit of the scheme.

Thanks in advance!

The salary sacrifice was deducted from your gross wages so pre tax.

HeidiHeidi

Irish94 wrote: »

Hoping someone can answer my query. In September last year, I availed of the Cycle to Work Scheme to the value of €1250. I agreed a 'salary sacrifice' over an agreed time of 12 months with my employer. Since then, €104.16 has been taken out of my monthly paycheck. Is this correct?

(12 months) * (€104.16) = €1249.92

I'd appreciate if anyone could confirm this.

I'm struggling to understand if it is - why would I not just purchase the bike and accessories itself to save me the hassle of getting my employer to purchase the bike and accessories? I don't see the benefit of the scheme.

Thanks in advance!

Because if you pay for it yourself it's taken out of your taxed income - this way you're getting it net of your top tax rate.

silverharp

Irish94 wrote: »

Hoping someone can answer my query. In September last year, I availed of the Cycle to Work Scheme to the value of €1250. I agreed a 'salary sacrifice' over an agreed time of 12 months with my employer. Since then, €104.16 has been taken out of my monthly paycheck. Is this correct?

(12 months) * (€104.16) = €1249.92

I'd appreciate if anyone could confirm this.

I'm struggling to understand if it is - why would I not just purchase the bike and accessories itself to save me the hassle of getting my employer to purchase the bike and accessories? I don't see the benefit of the scheme.

Thanks in advance!

they are deducting Gross pay, you would need to pay the name amount out of net pay

Irish94

Appreciate all of your replies. Makes sense! Thank you.

JohnnyMustang22

I would like to buy a new bike under the cycle to work scheme however the bike I want is only sold direct from the manufacturer and they have no resellers here in Ireland.

The manufactures to not accept any of the Bike to work vouchers operated by the providers here in Ireland. I have reverted to the fine print of the revenue website and wondered if anyone has any experience buying a bike from a manufactures/sellers outside Ireland on the cycle to work scheme?

https://www.revenue.ie/en/jobs-and-pensions/taxation-of-employer-benefits/cycle-to-work-scheme.aspx

According to Revenue website "The purchase can be made in any cycle shop. If you are a civil or public servant, the cycle shop must be on the suppliers list." So I am not a civil or public servant which means I can buy from "any shop" which I would interpret as anywhere in the world?

Instead of buying the voucher and using it to buy the bike my employer would just buy me the bike at the full price. Then do the usual deductions of €1,250 tax free and deduct the balance or if I am really lucky they would not charge me for the balance above the €1,250?

Your employer may buy the bicycle and not require you to pay for it. In this case, you will be exempt from tax on the benefit of the cost of the bicycle up to €1,250

Any and all advise will be greatly appreciated.

Thanks

magicbastarder

it depends on your employer. if your employer doesn't use a middleman who restrict purchases to an existing list, you may be in luck; your employer is free to buy the bike from whomever they choose, and it doesn't have to be a company based in ireland.
but many employers do use a middleman, or may have their own restricted list of bike shops they will deal with. but in principle, yes, it's possible to buy a bike from the supplier you mention. you'd need to check with your employer what policies they have in place regarding this.

JohnnyMustang22

magicbastarder wrote: »

it depends on your employer. if your employer doesn't use a middleman who restrict purchases to an existing list, you may be in luck; your employer is free to buy the bike from whomever they choose, and it doesn't have to be a company based in ireland.
but many employers do use a middleman, or may have their own restricted list of bike shops they will deal with. but in principle, yes, it's possible to buy a bike from the supplier you mention. you'd need to check with your employer what policies they have in place regarding this.

Thanks for the feedback.

I run a small business so I am lucky that I have the flexibility to choose/vary my employers bike to work policy. As such there is no existing policy as long as it is legitimate and follows the revenue rules/guidelines.

I might bounce it off the accountant to be sure.

magicbastarder

you're in luck so; unless the accountant finds some gotcha, my understanding is that the law simply states a bike must be bought. there are other online suppliers with no presence in ireland people have successfully bought from (e.g. canyon)

JohnnyMustang22

magicbastarder wrote: »

you're in luck so; unless the accountant finds some gotcha, my understanding is that the law simply states a bike must be bought. there are other online suppliers with no presence in ireland people have successfully bought from (e.g. canyon)

I am thinking the same myself. I'll let you know if anything crops up with the accountants.

Skill Magill

This is how it worked for me. Asked employer do they do the bike to work scheme, said yes.
Went into bike shop, they made an invoice for a bike for €1500 (electric bike), I photographed the invoice and emailed it to my employer. The invoice contained the iban account number for the shop. Employer paid €1500 to the bike shop. Bike shop rang me saying money is there. I paid the excess (bike cost more than 1500) to the shop. Shop gives me the bike.
I make arrangements with employer to repay the €1500 over 12 months, but not really 1500, I think it coes out at 750 or something.
Took 2 days, start to finish.

iwillhtfu

Skill Magill wrote: »

This is how it worked for me. Asked employer do they do the bike to work scheme, said yes.
Went into bike shop, they made an invoice for a bike for €1500 (electric bike), I photographed the invoice and emailed it to my employer. The invoice contained the iban account number for the shop. Employer paid €1500 to the bike shop. Bike shop rang me saying money is there. I paid the excess (bike cost more than 1500) to the shop. Shop gives me the bike.
I make arrangements with employer to repay the €1500 over 12 months, but not really 1500, I think it coes out at 750 or something.
Took 2 days, start to finish.

Was it an ebike you bought? A limit of €1250 applies to standard bikes and anything above that that your employer paid and is taking back in instalments would be liable for BIK.

Skill Magill

Yep, electric bike, €1500 limit, employer paid the 1500, I paid the excess.

JohnnyMustang22

So just ordered the bike. Lead times are crazy at the minute.

Its over the €1,250 limit so i will sort out paying the balance.

iwillhtfu

JohnnyMustang22 wrote: »

So just ordered the bike. Lead times are crazy at the minute.

Its over the €1,250 limit so i will sort out paying the balance.

What did ya get?

JohnnyMustang22

iwillhtfu wrote: »

What did ya get?

Needed a 2nd bike for general family, bad country roads, mountain track duties so went for a custom build Ribble Gravel Bike. Alu frame(so i can mount a kid seat), Carbon forks, GRX-810 1x11 gearset, Carbon seatpost, flared handle bars.

iwillhtfu

JohnnyMustang22 wrote: »

Needed a 2nd bike for general family, bad country roads, mountain track duties so went for a custom build Ribble Gravel Bike. Alu frame(so i can mount a kid seat), Carbon forks, GRX-810 1x11 gearset, Carbon seatpost, flared handle bars.

Nice I'll look forward to seeing a pic at some point Gravel bikes are great all rounders.

JohnnyMustang22

iwillhtfu wrote: »

Nice I'll look forward to seeing a pic at some point Gravel bikes are great all rounders.

Thanks but don't hold your breath. They are telling me 13th May delivery date. :mad: However I know a guy that knows some people that might be able to help get me pushed up the list.

fitzparker

edit

JohnnyMustang22

fitzparker wrote: »

edit

After reading the small print in detail my understanding is that it is strictly once every 4 years and that is a Revenue rule. Regardless if your bike got stolen 2 months after you bought it. I reckon its to stop people buying a new bike then selling it on to make a profit then doing it again and again.

You could probably try it but if Revenue picked up on it then raps on knuckles or fines would be incoming.

magicbastarder

no questions about misusing the scheme, thank you - that's tax fraud and this is not the place to ask for assistance on it

nihicib2

Hi all

Im an SNA and would like to get an electric bike through this scheme, has anyone dealt with the Dept. Of Ed. before and has anyone an idea of how long it takes them to put the application through? I got an invoice from Halfords for a bike that I like but the problem is the nearest store to me is closing down on March 11th and the next nearest store is over two hours drive away, which I don't want to be doing obviously. I just don't want to put this through this week if there's going to be a long delay in processing it and problems then if the actual store is closed if it is late coming through.


Thanks

godtabh

I'm due this again.

Work just sent me a form and I think its wrong (irish office off a uk company)

They are asking me to sign a higher agreement which I didnt think was they way it was done. For example this bit

The Consumer Credit Act 1995 covers this agreement and lays down certain requirements for your protections which should have been complied with when this agreement was made. If they were not, we cannot enforce this agreement against you without getting a Court Order. If you would like to know more about your Rights under the Directive, contact either your Local Trading Standards Department or your nearest Citizens’ Advice Bureau.

This isnt correct is it?

Weepsie

Isn't that how it operates in the UK?

iwillhtfu

godtabh wrote: »

I'm due this again.

Work just sent me a form and I think its wrong (irish office off a uk company)

They are asking me to sign a higher agreement which I didnt think was they way it was done. For example this bit



This isnt correct is it?

In the UK the bike to work applies to the full value of the bike there's no limit afaik. They've a sweet deal over there.