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

magicbastarder · 13-08-2020 10:04am

Seth Brundle wrote: »

All of the payment for the bike will be made by your employer e.g. €2500 to the LBS (local bike store).

I thought what usually happens is the LBS splits the invoice? The tax qualifying amount for the employer, the balance to you? It's what I did.

kenmm · 13-08-2020 10:06am

grogi wrote: »

It's not that simple. The rules have changed, there are two thresholds now. Plus they need to maintain the history as well.

Wait - what is this about 2 thresholds?

I just bought a bike - have I messed up the timing?

oh ffs - I sent the money on the 28 July. FFS One of the few benefits I get for paying tax in this country and they change the rules..

listermint · 13-08-2020 10:08am

kenmm wrote: »

Wait - what is this about 2 thresholds?

I just bought a bike - have I messed up the timing?

electric and non electric.

that simple.

And the new thresholds would not have started in july afaik.

kenmm · 13-08-2020 10:11am

listermint wrote: »

electric and non electric.

that simple.

And the new thresholds would not have started in july afaik.

Electric/ non electric AND a higher limit for non electric. Wouldn't mind, buy I wont get it delivered until end of Aug..

kenmm · 13-08-2020 10:16am

bullsh!t lol - get gouged enough in Irish tax then they pull this half way through the tax year!! Well enjoy all you who can get it!

listermint · 13-08-2020 10:18am

kenmm wrote: »

bullsh!t lol - get gouged enough in Irish tax then they pull this half way through the tax year!! Well enjoy all you who can get it!

pull it? its been all over the papers for the past month..

kenmm · 13-08-2020 10:23am

listermint wrote: »

pull it? its been all over the papers for the past month..

July or August - both half way through the tax year..

It wasn't on Revenue website when I purchased. Didn't see it in the papers. I've just missed out on 130quid - can't I have a small rant about it in peace??

EDIT - I contacted company on 14th, work sent money on 20th, looks like the stimulus package was 23rd or 24th. I still reserve the right to be annoyed about it (me not reading the papers is part of that before anyone comments!)

Seth Brundle · 13-08-2020 10:28am

magicbastarder wrote: »

I thought what usually happens is the LBS splits the invoice? The tax qualifying amount for the employer, the balance to you? It's what I did.

It's what I did too. That way the LBS could give me a discount on the balance (as my company uses the shysters as middlemen).
I don't think they are supposed to do it. The company is supposed to purchase the bike and you pay for it via salary deductions.

davidsatelle100 · 13-08-2020 3:33pm

Seth Brundle wrote: »

It's what I did too. That way the LBS could give me a discount on the balance (as my company uses the shysters as middlemen).
I don't think they are supposed to do it. The company is supposed to purchase the bike and you pay for it via salary deductions.

Yeah thats the way it worked for me both times i've availed of the BTW, invoice for a 1000 to the job and the balance paid by me directly to the shop. Different shops each time aswell.

Seth Brundle · 13-08-2020 5:17pm

davidsatelle100 wrote: »

Yeah thats the way it worked for me both times i've availed of the BTW, invoice for a 1000 to the job and the balance paid by me directly to the shop. Different shops each time aswell.

Yeah but it is a bit of a fiddle in the sense that the LBS gave you (and me) an invoice that wasn't for what you actually bought.
For me the only benefit to doing this was that because my company used the middlemen company which removes any discounting power from the LBS, I was better off only using 1k via the scheme.
I could then give the rest of the money to the LBS directly and no cut was taken by the middlemen and I had the opportunity to get a bit of a discount.

Higgins5473 · 13-08-2020 7:27pm

kenmm wrote: »

July or August - both half way through the tax year..

It wasn't on Revenue website when I purchased. Didn't see it in the papers. I've just missed out on 130quid - can't I have a small rant about it in peace??

How have you missed out on 130 quid?

magicbastarder · 13-08-2020 7:44pm

I guess he spent over 1.25k and would have enjoyed tax relief on the extra 250 quid.

nihicib2 · 13-08-2020 9:51pm

Seth Brundle wrote: »

All of the payment for the bike will be made by your employer e.g. €2500 to the LBS (local bike store).
You will get "relief" on €1500 and not on the other €1000.
So let's assume the relief on the €1500 means you pay €750 (or thereabouts), then out of your wages you pay €1750 (or thereabouts).
This is taken from your salary over an agreed number of months (up to 12).

Thank you

CramCycle · 14-08-2020 9:09am

Seth Brundle wrote: »

Yeah but it is a bit of a fiddle in the sense that the LBS gave you (and me) an invoice that wasn't for what you actually bought.
For me the only benefit to doing this was that because my company used the middlemen company which removes any discounting power from the LBS, I was better off only using 1k via the scheme.
I could then give the rest of the money to the LBS directly and no cut was taken by the middlemen and I had the opportunity to get a bit of a discount.

Technically the middle men crowd are breaking the rules of the scheme as your employer is not buying from the bike shop. The paying directly for over the 1000euro is technically not the way the scheme is meant to be run but there is no advantage to you or the company for this so I wouldn't be overly concerned about it.

kenmm · 14-08-2020 9:14am

CramCycle wrote: »

Technically the middle men crowd are breaking the rules of the scheme as your employer is not buying from the bike shop.

Ye - thats a good point actually - never thought about that before - and is there some legal definition of bike shop etc?

I never understood why employers used those middlemen companies - as far as I can tell, there is no more payroll administration than many other things that an employer would need to do? Except maybe having to write cheques/ send money to multiple different suppliers? But even the largest employers, only a small percentage of employees would avail of the scheme anyway.

MJohnston · 14-08-2020 9:22am

I genuinely think TravelHub leverage the confusion that I explained before between the Cycle to Work scheme and their Bike To Work Ltd company to convince some companies that theirs is the only way to do it.

Also, I've no idea what it takes to administer the Taxsaver scheme, and TravelHub bundles that and the C2W scheme together, so maybe Taxsaver is a real pain in the arse?

Seth Brundle · 14-08-2020 9:24am

kenmm wrote: »

I never understood why employers used those middlemen companies - as far as I can tell, there is no more payroll administration than many other things that an employer would need to do? Except maybe having to write cheques/ send money to multiple different suppliers? But even the largest employers, only a small percentage of employees would avail of the scheme anyway.

Having asked my own HR dept, it was to avoid having to create various vendor accounts: no other reason (I wouldn't mind but HR would not have even been the ones creating the account in SAP) :rolleyes:

CramCycle · 14-08-2020 9:34am

Seth Brundle wrote: »

Having asked my own HR dept, it was to avoid having to create various vendor accounts: no other reason (I wouldn't mind but HR would not have even been the ones creating the account in SAP) :rolleyes:

And there is the risk that if you flagged it in a big enough company they simply would pull the scheme rather than the above.

what_traffic · 14-08-2020 10:17am

Seth Brundle wrote: »

Having asked my own HR dept, it was to avoid having to create various vendor accounts: no other reason (I wouldn't mind but HR would not have even been the ones creating the account in SAP) :rolleyes:

I know even SAP(Ireland) HR do the same

TravelHub is who they use for Taxsaver scheme and Bike to Work

kenmm · 14-08-2020 10:20am

CramCycle wrote: »

And there is the risk that if you flagged it in a big enough company they simply would pull the scheme rather than the above.

That was practically the only reason I would think of - and when you get down to it - a small percentage (hopefully more now tho) of people in the company and more than likely using the same few shops (if Dublin based). So its not likely to be one account per employee.

And yes - there is confusion - I still google "Bike to work" every time I want the revenue Cycle to work page (for example).

BanananaBread · 17-08-2020 9:57am

New user here; not sure if this has been asked before!

Started a new job recently, just wondering is there any place I can purchase a stationary bike through this scheme? I have a normal bike myself but the roads around my house are just so awful that I never feel enticed to go out on it.

Just want something so I can get some cardio in the mornings and start work without having to go out in the cold/dark.

Also: this is a genuine question, I'm not plotting to try get around the scheme!

CramCycle · 17-08-2020 10:03am

BanananaBread wrote: »

New user here; not sure if this has been asked before!

Started a new job recently, just wondering is there any place I can purchase a stationary bike through this scheme? I have a normal bike myself but the roads around my house are just so awful that I never feel enticed to go out on it.

Just want something so I can get some cardio in the mornings and start work without having to go out in the cold/dark.

Also: this is a genuine question, I'm not plotting to try get around the scheme!

I'm sure you can find a bike shop that will as to them its just a purchase. This said your company would be committing tax fraud if they did it and the scheme is designed to buy bikes that will at some point be use to ride to work so we can leave that there as has been posted many times before in the thread, discussion of fraud or misuse of the scheme is not allowed.

MJohnston · 17-08-2020 10:04am

Get yourself a turbo-trainer, instead of a new stationary bike.

kenmm · 17-08-2020 10:04am

BanananaBread wrote: »

New user here; not sure if this has been asked before!

Started a new job recently, just wondering is there any place I can purchase a stationary bike through this scheme? I have a normal bike myself but the roads around my house are just so awful that I never feel enticed to go out on it.

Just want something so I can get some cardio in the mornings and start work without having to go out in the cold/dark.

Also: this is a genuine question, I'm not plotting to try get around the scheme!

I think considering its called the Cycle to Work scheme, then being at least capable of the "To Work" park is kinda required..

Now.. if one was to buy a bike and keep it on a turbo..I guess no issue!

BanananaBread · 17-08-2020 10:11am

That's great; no problem.

I'll buy it myself so. Thanks.

thebourke · 19-08-2020 3:45pm

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

redsteveireland · 24-08-2020 10:33am

KP81 wrote: »

On when the limit increase kicks in. Tried to get voucher from work for the €1250 and HR say it’s not effective until president signs bill into law. It was at stage 10/11 since Jul 30th. Think Michael D is on hols so that’s why it’s not in place yet &#55357;&#56865;

We were notified today by work of the new limits being available from the 27th of August.

peteb2 · 24-08-2020 3:19pm

redsteveireland wrote: »

We were notified today by work of the new limits being available from the 27th of August.

I picked one up last Saturday on the new limits. Bike shop just needed Revenue to confirm. And Revenue did that on 10th August.

bilasy · 25-08-2020 11:10am

redsteveireland wrote: »

We were notified today by work of the new limits being available from the 27th of August.

Does this date apply to all work place? Or depends on the individual work?

mr spuckler · 25-08-2020 11:14am

bilasy wrote: »

Does this date apply to all work place? Or depends on the individual work?

New limits were operational at Revenue from August 1st. Some workplaces or schemes may have a lag in implementation.

Seth Brundle · 25-08-2020 11:14am

The limits changed on August 1st according to Revenue (https://www.revenue.ie/en/jobs-and-pensions/taxation-of-employer-benefits/cycle-to-work-scheme.aspx and https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-04-08.pdf).
However, a company may decide to offer it from the first payroll run after August 1st which I suspect is the case with redsteveireland's company.

CramCycle · 25-08-2020 11:52am

Indeed, no company is under any legal impetus to increase to the new limits or implement whenever they feel like it. A company can set multiple restrictions such as a limit below government target (not sure why they would), a certain store to buy from or that you have to do one lump payment.

I imagine as said above, just took them a few weeks to get it in place

cccccc · 26-08-2020 10:39pm

Anyone have any success buying a van moof ebike under cycle to work?

bilasy · 30-08-2020 4:39pm

cccccc wrote: »

Anyone have any success buying a van moof ebike under cycle to work?

I went to the pop up shop in Dublin, meant to be open today as per the website but was closed, also tried to book test ride unavailable for the next 3 months didn’t check after. Reviews seems to mixed but more on the negative side and no service base in Dublin, is there is any where else in Dublin you can buy the Van moof other than the website? The bike seems really futuristic and it’s marketed as the Tesla of the ebike but most reviewers wrote give it few yrs
Not sure how it would work scheme wise but highly unlikely.

https://ie.trustpilot.com/review/www.vanmoof.com

machiavellianme · 30-08-2020 7:14pm

Thinking of getting a kuma ebike myself, designed and built in Dublin. No harm in supporting local.

bilasy · 06-09-2020 5:15pm

Chiparus wrote: »

I want to order a van moof , they only operate online, but as I read it, I have to get my employer to pay Van Moof.

Or can I present the paid invoice to my employer (HSE) and they pay me back ?

Sorry if this has already been answered in the previous 2000 or so posts.

Hi,
Depends which area in the HSE u work, so for example Longford area, Cavan area already can avail of the €1500, but Dublin for instance didn’t apply yet, also be aware that the closing dates for applications is 28/09 and you will have to repay back before 31/12/20.
I was told that HSE will issue you some form of payment to Van moof and you will have to settle €498 directly to them

bilasy · 13-09-2020 8:12pm

You can apply now

CramCycle · 13-09-2020 8:39pm

Very specific question, I am open to apply again. Any recommendations for south Dublin or North Wicklow shops. My LBS has closed since the last one. I am thinking Harrys in Clonskeagh as I hear good things in work.

AndrewJRenko · 20-09-2020 3:18pm

CramCycle wrote: »

Very specific question, I am open to apply again. Any recommendations for south Dublin or North Wicklow shops. My LBS has closed since the last one. I am thinking Harrys in Clonskeagh as I hear good things in work.

I've had good service from Joe Daly's in Dundrum for my last two bikes. Personally, I find it is important to have a shop with walking distance of home or work, to make it reasonably easy to drop the bike off for servicing or repairs.

gyaanimonk · 20-09-2020 4:06pm

nice article

banchang · 13-10-2020 4:30pm

Looking for recommendations for an ebike to be bought under the Bike 2 Work scheme. Wanted to spend up to Eur2000.

Thoughts appreciated.

gazzaman22 · 13-10-2020 8:02pm

banchang wrote: »

Looking for recommendations for an ebike to be bought under the Bike 2 Work scheme. Wanted to spend up to Eur2000.

Thoughts appreciated.

Snap, keeping my eye on this.

Can some one let me know if I apply for BTW now do I pay it back within 2020 or from October 2020 to October 2021?

Officer Giggles · 13-10-2020 8:07pm

gazzaman22 wrote: »

Snap, keeping my eye on this.

Can some one let me know if I apply for BTW now do I pay it back within 2020 or from October 2020 to October 2021?

Some companies may have their own specific rules but in general it would be from October 2020 to 2021

magicbastarder · 13-10-2020 10:45pm

some companies (AFAIK) will spread the repayments over 12 months, some would want the repayments made by the end of the FY, which would up your monthly repayments obviously - unless you bought at the start of the FY.

phantasmagoria · 19-10-2020 8:48pm

Are any Dublin shops doing specials on the scheme? I know the Bike Institute on Dorset St. did 3 years free service but they are having supply chain issues. Anybody know if any other places giving a little extra? Thanks for any input

C3PO · 20-10-2020 8:21pm

phantasmagoria wrote: »

Are any Dublin shops doing specials on the scheme? I know the Bike Institute on Dorset St. did 3 years free service but they are having supply chain issues. Anybody know if any other places giving a little extra? Thanks for any input

I would be surprised - bikes shops can't get hold of enough stock at the moment so will probably want to maximise return from each sale.

jive · 15-01-2021 4:59pm

My employer uses Bike to work, Decathlon does not deal with third parties i.e. only 'cycle to work' scheme. Anyone any advice here or am I shít out of luck with the tax saving?

grogi · 15-01-2021 5:05pm

jive wrote: »

My employer uses Bike to work, Decathlon does not deal with third parties i.e. only 'cycle to work' scheme. Anyone any advice here or am I shít out of luck with the tax saving?

The latter. You can approach your employer about that, but once they have the b2w scheme in place, that's all they want to hear about that.

CramCycle · 15-01-2021 8:34pm

jive wrote: »

My employer uses Bike to work, Decathlon does not deal with third parties i.e. only 'cycle to work' scheme. Anyone any advice here or am I shít out of luck with the tax saving?

I presume you mean they don't deal with anyone bar companies directly?

grogi wrote: »

The latter. You can approach your employer about that, but once they have the b2w scheme in place, that's all they want to hear about that.

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

jive · 15-01-2021 9:26pm

CramCycle wrote: »

I presume you mean they don't deal with anyone bar companies directly?

Yeah Decathlon do not deal with any third parties like bike to work. My employer only does bike to work apparently.

Still going to buy the bike but it is a €600ish kick in the nuts! I will ask again but HR person seemed pretty dismissive.

Is there any recourse if I buy it and then try to claw it back after or does this all need to be done upfront? Not that familiar with the scheme.

Company is mid size I would say, 600 or so in Ireland.

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

Comments