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

Beasty

Firstly this thread is not about which bike should you get under the BTW scheme – there are too many variables to try and cover this in a single thread. It is to provide a summary of the scheme, some do’s and don’ts and act as a single thread for all technical aspects of the scheme.

Any new threads created covering the rules and application of the scheme will either be locked or transferred to this thread. Please ensure you review the whole thread before posting a new query

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Surveyor11

Ok, so had some good news today. My work contract has been extended to March 2012. My head says "yeaaah, that's the mortgage sorted until March 2012:o", but my heart says "yeaaah, off the nearest bike shop for a bit of bike porn:pac:".

As I'm on a 6 month rolling contract (with no guarantee of renewal), as far as I know I can only get half the tax relief and obviously 6 payments as well to pay for my new steed - which will imapct on what I can buy in terms of affordability. I've got my eye on a few nice machines in the €1200 bracket and don't want to be rail roaded into one particular LBS - quiet happy to buy on line or elsewhere if my employer will play ball. Anyone direct experience of this in a similar situation? I know it's normally over the full year in terms of relief & payments.

Idleater

Surveyor11 wrote: »

as far as I know I can only get half the tax relief and obviously 6 payments as well to pay for my new steed - which will imapct on what I can buy. ...

I know it's normally over the full year in terms of relief & payments.

Why do you think you'll only get half the tax relief? It comes off your gross annual tax so if you have worked all of this year and will have earned > €33800 then you can claim the full €1000 @ the full tax rate (assuming you are not claiming any other tax reliefs).

There are no stipulations as to the amount of payments other than they must be completed within 1 year. I had to do mine all in one go.

Surveyor11

Thanks for the info. Well, I took the view that maybe as I could technically be umemlployed in March 2012, that the relief would only be offered during the period I'm working, but I can check this out.

When you say you had to pay it off in one go, do you mean you orrghered the bike then paid in one installment? I would also like to do this, would mean that I have the bike it's paid in one go.

cdaly_

Yep, that should do it.

Idleater

Surveyor11 wrote: »

Thanks for the info. Well, I took the view that maybe as I could technically be umemlployed in March 2012, that the relief would only be offered during the period I'm working, but I can check this out.

You should do the calculations for your tax for this year and your likely tax for next year.

The payment in one go was a stipulation from the accountant in my company, you should talk to the finance person where you work to see what the options available to you are.

If you can afford to take the hit in this year, and fear that you may not earn over €32800 to be paying higher rate tax next year, then you need to see how much effort it is for you to save at the higher tax band this year assuming you have the leeway.

Chong

Hi Everyone,

My OH has a bike they bought earlier this March, but no longer can use the bike through injury, is it permissable for her to sell the bike before the year is up whilst she continues to pay off the bike until March 2012?

Thanks

Plastik

Yes.

Beasty

Just to add to plastik's answer - the bike becomes the employee's at the outset when the employee needs to intend to use the bike mainly for commuting. However there is absolutely nothing to stop anyone changing their intentions thereafter (for whaever reason)

Chong

Thanks guys she was worried it wasnt allowed

ED E

#necro (EDIT: Misread date, not necro

)

Can casual employees(I not on a recurring payroll) claim B2W? Can you pay off the bike in one months pay?

As a student with lots of credits spare, will I get 23% off?

TIA,
LB.

Beasty

Lethal_Bullet wrote: »

#necro (EDIT: Misread date, not necro )

Can casual employees(I not on a recurring payroll) claim B2W? Can you pay off the bike in one months pay?

As a student with lots of credits spare, will I get 23% off?

TIA,
LB.

You need to be paid under PAYE and to get any benefit you need to be tax-paying (which, if you have excess tax credits, you are not)

ED E

Gonna be very pov then

doMore

This thread is great - answered most of my queries on this. I want to avail of the scheme but I work in a very small company so will pretty much have to handle the administration myself. In the absence of biketowork.ie etc, are there particular forms to be signed re salary sacrifice agreement and statement that the employee will be using the bike to travel to work or are these something that the accountant could knock up fairly handy?

reilig

Are there any links to sample documents for the salary sacrifice agreement and the declaration that the bike will be used for work purposes

Idleater

doMore wrote: »

are there particular forms to be signed re salary sacrifice agreement and statement that the employee will be using the bike to travel to work or are these something that the accountant could knock up fairly handy?

I think they only need a "record" of it, in my case I emailed my boss, who emailed the accountant. Nothing was actually signed per se and the accountants did all the tax calculations against one month pay (I wasn't allowed to do multiple payments to make it easy for them).

seamus

No, there's no requirement for any statements or agreements, they're often just recommended by the legal types as an ass-covering exercise.

A sheet of paper on company headed paper, signed by the employee and with the below text will suffice as a "record";

"I provide permission for the company to make a <one-off> deduction from my salary of €X <over Y months> for the purposes of purchasing a bicycle for my use under the Bike to Work scheme.

I understand that the purchased bicycle becomes and remains my property and my responsibility and I undertake to use the bicycle for the majority of my trips to and from the workplace

Signed, etc....".

All you're really covering your ass for is to be able to show Revenue that you had legitimate subscribers to the scheme (and weren't just scrimping on your PAYE bill) and to avoid any situation where the employee tries to claim money or whatever back from the company.

doMore

Brilliant, thanks for the replies re covering your ass! All this really is very simple once you know how!

gman2k

Is there any allowance in the scheme to just purchase a frame?

Lumen

gman2k wrote: »

Is there any allowance in the scheme to just purchase a frame?

No.

Idleater

Lumen wrote: »

gman2k wrote: »

Is there any allowance in the scheme to just purchase a frame?

No.

Well as part of a complete bike, yes. I specified a frame, groupset finishing kit etc in my lbs. If they were willing to order a eg. canyon frame and build it up for you then happy days.
You get an invoice from the shop for all your parts, pay through btw cheque/cc payable in one sum to the bike shop and collect the complete working rolling pedaling bike after the shop has built it for you.

ednwireland

reilig wrote: »

Are there any links to sample documents for the salary sacrifice agreement and the declaration that the bike will be used for work purposes ??

http://www.bikescheme.ie/get-info-pack

Beasty

seamus wrote: »

"I provide permission for the company to make a <one-off> deduction from my salary of €X <over Y months> for the purposes of purchasing a bicycle for my use under the Bike to Work scheme.

I understand that the purchased bicycle becomes and remains my property and my responsibility and I undertake to use the bicycle for the majority of my trips to and from the workplace

Signed, etc....".

That is not a salary sacrifice agreement

You must agree to forego part of your salary in return for the bike, not use some of your salary to buy it - it needs to be a formal amendment to the employment contract (which requires the signature of both parties - employer and employee)

seamus

Strictly speaking it doesn't actually have to be written down, a verbal agreement would technically suffice, but you're right - from an ass-covering POV it is better to have that section separately written down and signed by both parties.

reilig

seamus wrote: »

Strictly speaking it doesn't actually have to be written down, a verbal agreement would technically suffice, but you're right - from an ass-covering POV it is better to have that section separately written down and signed by both parties.

Our company want it for ass covering purposes. It was hard enough to get the board to agree to give me the BTW scheme, I better give them th epapework that they want

From ednwireland's link above:

Please note that there is no requirement to notify Revenue that you are availing of the scheme but the purchase of bicycles and associated equipment by employers for directors and employees will be subject to the normal Revenue audit procedure with the normal obligations on employers to maintain records (e.g. delivery dockets, invoices, payments details, salary sacrifice agreements between employer and employee, signed statements from employees that the bicycle/bicycle safety equipment is for own use and will be used for traveling to and from work).

Lumen

gman2k wrote: »

Is there any allowance in the scheme to just purchase a frame?

Lumen wrote: »

No.

Idleater wrote: »

Well as part of a complete bike, yes.

I don't normally do this, but :rolleyes:

Idleater

Lumen wrote: »

I don't normally do this, but :rolleyes:

Apologies, I failed to note the just.

grey_man

Hi there,

I would like to purchase a bike through the C2W Scheme. My employer approves of this scheme. I had a look at the list of approved sellers on http://www.opw.ie/en/media/Bicycle%20Suppliers.pdf and would like to purchase from Chain Reaction Cycles, in Belfast, purely for the large choice of bikes etc.

I have been in contact with CRC and had an invoice sent to me with the VAT number etc.

However, my employer requires a 'VAT Clearance Certificate Reference Number' before they can process my application.

Apparently ''A Tax Clearance Certificate is a written confirmation from Revenue that a person's tax affairs are in order at the date of issue of the Certificate.'' and is required for all contracts in the public sector. I work in the Publin Sector.

I contacted CRC and they don't know anything about this. I take it it's because they are based in the UK.

Has anybody here, from the public sector, ordered anything from CRC through the C2W Scheme?

I find it weird that CRC is an appoved ROI C2W seller (from OPW link above) and yet I can't seem to be able to complete my application.

Can anybody offer any advice or help on what can be done please?

Thanks in advance,
John.

seamus

Yuck.

Anyone who supplies goods valued more than €10,000 to a public body in a given 12-month period is required to obtain a tax clearance certificate to continue working with that body.

In your case, CRC have probably supplied 10 bikes before yours, meaning that they now need a TCC.

http://www.finance.gov.ie/documents/circulars/circ432006.pdf

Page 4:

7.2.1 Non-resident contractors who are registered for Irish tax and who do not have
a permanent established place of business in the State should be advised to apply for
tax clearance to Dublin City Centre Revenue District, 9/15 Upper O’Connell Street,
Dublin 1.

CRC are based in the UK, but registered for Irish VAT, so the above applies to them. You can let CRC know that they only need to do this once and it will clear them for all bikes supplied to all public bodies in ROI.

ednwireland

[Thread merged with megathread ]

reilig

Just a quick note to thank those who advised me on this thread about the BTW scheme. My employers had no clue how it operated, and this thread was great for me to get answers to their questions. I got my cheque yesterday and I am due to collect my Lapierre Audacio 400 (2012 model

) from my LBS on friday evening along with my clipless pedals and cycling shoes. Total cost of the Eur1000 bike was a EUR462 reduction from my monthly salary (I opted to have the cost of the bike in one go).

Thanks Again!!