Bike to Work

mrcheez

I'm sure this has been asked way too many times but I just wanted to be clear as I can't seem to get a clear answer from the accountants in work

I am going to be getting a bike valued at 1,000, and I'm in the higher tax bracket.

The company will buy the bike for me on the company credit card and I want to pay off the bike in one month.

Am I correct that at the end of the month, I only pay €480 ?

Thanks.

Guill

Go to biketowork.ie and on the home page a chat box opens in the top left corner. Chat the little man in the magic box and he will answer your questions.

mrcheez

Is it a magic box because it doesn't stretch more than 1 inch wide?

TheBlaaMan

By and large...........?

Yes is the answer. The uncertainty is due to the way each individual employer implements the scheme, so its not straightforward to answer, but as far as I understand, if the employer allows you pay it all off in one go, you are correct.

mrcheez

Magic Box man says: "Please contact your HR Dept for more details."

Great .. back to square one!

mrcheez

eh .. ok .. so apparently this ISN'T as straightforward to get answered as I'd imagined.

Basically, is 1,000 or 480 taken out of my salary at the end of the month?

Do I pay 1,000 now and just pay less tax over the rest of the year? Or just pay 480 and be done with it?


UPDATE: OK TheBlaaMan I see your edit ... I guess I have to grin and bear it and try to get the info from accountant

Morgan

€1000 will be deducted from your gross salary.

mrcheez

Morgan wrote: »

€1000 will be deducted from your gross salary.

cheers .. and then I'm credited back the 520 over the next 12 months via tax reductions?

seamus

As above, €1000 comes out of your base pay for the month.

Your payslip will show a gross pay of €1,000 less, but a net pay of €480 less.

So from your point of view what goes into your account has only dropped by €480.

You don't receive any money "back".

Though the figures may not appear that simple on the payslip, it depends on how it's calculated. But basically your net pay for the whole year will be €480 less.

mrcheez

gotcha... cheers