Explain to your employer that there actually isn't a difference to them aside from the effort required to set up another supplier in their accounts system.
These middlemen companies don't offer any benefits other than they act as a single payment point for the B2W scheme.
When I availed of the scheme last year, my employers allowed me to deal directly with the shop once I explained this to them. My payroll dept thought that they had to deal with the shysters! Furthermore, for me doing this directly with the shop meant that the shop received the full invoice amount - with the shysters, a cut is taken from the retailer. As I dealt directly with the shop, I got a discount from them. Furthermore, the shop I dealt with have a surcharge for using the shyster companies apparently due to the extra effort required on the retailer by the shyster (which I think is partly down to the shysters delaying payment).
The bike to work scheme needs to change to be mandatory and also to allow direct payments. No reason these middle men shysters should be profiting for doing the bare minimum. Correct me if I'm wrong but all they're doing is taking the companies money and making up a payment voucher to pay the shop.
The employer still has to make a bank transfer, sort your wages, and the employee has to go through the effort to create an account on their portal. So much easier to just send over an invoice to accounts...
I'll give that a shot, hopefully they're in an understanding mood
Yeah it's a bit silly that it's still up to the employer to actually provide the scheme. Can't see why individuals can't just apply through revenue myaccount and just get a tax credit relative to the value of the bike
Well HR got back and as expected said f**k off. Apparently there's some automation in the background which would mean they can't process the payment (in other words, it's more work and they don't want to do it)
Well....back to the drawing board I guess
Bit like my place, it is annoying as it is actually F All work but they have a "policy".
My place switched from in-house "phone the shop with a finance credit card" to the outsourced taxsaver/biketowork because finance (day to day) was moved to another office (and country).
If i claimed in 2021 last do i need to complete 4 years to claim again?
Basically is it 2024 or 2025 when i can use the scheme again?
It is based on calendar (tax) years so if you availed of it in 2021 then the next time you could avail of the scheme would be anytime from Jan 1st 2025.
Thanks & lousy as i hoped it was anytime in year 4 it can be claimed again.
Is there any way to schedule the cycle-to-work payments to get closer to the 52% saving?
If you think you will get paid more in the next tax year, try and set it up that most of the payments come out next year. If pay is likely to stay the same, aim for starting half way through, therefore half applies to one year and half to the next. Of course if you are into the 52% tax bracket by more than the price of the bike, then it doesn't matter when you do it.
In the above scenario if you pay half one year and half the next year (e.g. end of 23/start of 24) what year would you be able to claim again; 4 years from 23 or 24?
Four years from 2023.
That's the way it works in some public sector areas, anyway. Payment window is January to November, regardless of when you start paying
Not with Revenue but some employers make you.
How can you work out how much you will save on this scheme? I used this ( https://www.cyclescheme.ie/calculator ) and it says 48.75% but my employer is saying it will be around 30%.
I don't go into the higher income bracket with my salary.
the payments get taken out of your pre-tax salary and you don't then pay tax on it. So you can't save at a higher rate than you are paying tax at.
If you're a standard rate taxpayer you'll probably save 20% tax, 4% PRSI and 4% USC but it depends on your exact salary.
Hi I am going to be using d cycling to work scheme for a cargo bike so limit is 3k. I have asked my work how much will I have to pay each Mt, after tax and they are no help at all and I can not figure it out. I have looked up online and the Mt payments after tax range from 120 to 175
So I earn 53k a year, married. If I use d full 3k how much will I have to pay each mt/year after tax.
Thanks for any help
Your in the higher tax bracket, so back of the envelope, in my head, your net wages will decrease by 125euro/month, probably a bit less but this is in my head, if you spend close to the full 3k. Basically 125 net, 250gross, is 3k a year.
Hi there! I'm going to avail of the cycle to work scheme and I'm on a fixed term 9 month contract at work. There's a possibility of being kept on but I won't know whether that's happening til later this year.
My question is: do you save less if you pay over 9 months than you would if paying over 12?
Here are the other figures in the equation - all monthly (not annual figures):
Gross salary 4,045
USC 65.90
PRSI 161.82
Employer PRSI 447
You don't save less, they just split the payments over 9 months, so each monthly repayment will be a bit more than over 12 months
The saving comes off your tax liability as it deducts from your gross salary before any tax is applied - saving would not change if you pay back your employer in 1 or 12 instalments. If you left employment they would take any amount remaining from last salary anyhow.
Used the scheme in 2019. Am i correct to say I can now use it this year as its 5 years on?
As an employee, you can use the scheme once every 4 years. The four-year span between tax breaks is counted by tax year. If you bought a bike in 2020, regardless of the month, you could buy a new bike and avail of the next tax relief in January 2024.
ref
It's every 4 years now, and it's run on calendar years - so if you bought a bike in December 2020, you can use the scheme again in January 2024
Similar to a few above queries where the estimated savings range from 20%-52% of the total cost of the bike, and I'm at a point now where I have to decided between a regular bike (with a 1250 limit) or a cargo bike (with a 3k limit), but it's heavily dependent on the true impact to my take home pay.
(Not exact numbers) Married, both on 75k. So each has gross pay of 6,250. 3,352 is taxed at 20%, remainder (2,898) is taxed at 40%. Total tax payable is 1,830. USC/PRSI is €510.Take home is then €3,910.
If I take a cargo bike at the max 3k, my monthly gross deductions are 250. So again, 3,352 taxed at 20%, remainder (2,648) taxed at 40%. Total tax payable is 1,730. Is the PRSI/USC charged on the gross before or after the deduction?
Before deduction, so you aren't paying tax on the amount deducted,
I'd have to check my payslips from when I last did the scheme but I'm pretty sure the deduction is done first before any tax/UCS/PRSI. So if you're a top rate tax-payer you'll save 51% or 52% of the cost of the bike.
You might be saving on tax, but, if you don't need, want or use the bike (whichever type who decide on) are you really saving anything? I know people who got bike, and have never used it, just a dust collector, so they aren't really saving anything.
