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

cython · 25-10-2015 8:55am

Officer Giggles wrote: »

Do the changes in the USC from January mean that at the top end your saving will drop from 51% to 49.5%

If you the top end you refer to the 7% rate that has since dropped to 5.5% (as opposed to the 8% over €70k, since many more people are in the former position) then yes. The same was seen last year when they reduced the tax burden as well, and it actually worked out that up to 70k you saved 1% less, but the new USC band meant people paid over 70k would see the same saving. The very top end rate of 8% sees no change though.

iwillhtfu · 25-10-2015 8:58am

Officer Giggles wrote: »

Do the changes in the USC from January mean that at the top end your saving will drop from 51% to 49.5%

Wow I wish had to worry about this

mydiscworld · 27-10-2015 3:11pm

Officer Giggles wrote: »

Do the changes in the USC from January mean that at the top end your saving will drop from 51% to 49.5%

Yes. Max saving drops from 510 to 495 from Jan 1 2016, though one might argue you'd get a cheaper bike in the Jan sales than buying it before Xmas

Beasty · 27-10-2015 4:03pm

You will only be saving less tax/USC because you will be paying less tax/USC in the first place;)

Having said that, if you have the choice of getting a bike this year or next, there is a net saving in the above scenario (and you get to qualify a year earlier next time if you and the scheme are still around!)

Unknown Soldier · 29-11-2015 1:10pm

Has anyone ever had to get a Credit back from an LBS under the scheme?

Say you order a bike and pay for it with the company cheque but when you are building the bike you notice that the geometry is nothing like was advertised and is too big. The next size down is not available (might never be again) and even if it was the geometry might not suit.

Where do you stand with getting a credit? Should you be able to get a cheque written back to the company? (not yourself obviously)

Can an LBS insist that as you've started the BTW they can't do a credit? Even though you are still going to use it in another LBS?

CramCycle · 29-11-2015 1:18pm

Unknown Soldier wrote: »

Can an LBS insist that as you've started the BTW they can't do a credit? Even though you are still going to use it in another LBS?

The fact that it is B2W makes no difference to the shop. It is a normal transaction to them. It would be covered under the sale of goods act. Your company would be entitled to a refund although it may be awkward.

Unknown Soldier · 29-11-2015 1:21pm

CramCycle wrote: »

The fact that it is B2W makes no difference to the shop. It is a normal transaction to them. It would be covered under the sale of goods act. Your company would be entitled to a refund although it may be awkward.

Thanks, Cram.

I did a bit more research and came up a blank but the more I thought about it.. the more I came the conclusion you just mentioned. They just took a cheque for the full amount. So it might just as well have been cash/credit card. It would be a different situation were it bought "through" a bike to work scheme company with them. I think this is where the confusion lies.

Grand so!

Thanks for coming back to me. Appreciate it!

Beasty · 29-11-2015 2:27pm

The company buys the bike and "sells" it to the employee under the salary sacrifice process. If the bike has not been delivered to the company yet they can cancel the contract, as Cram says, under normal sales of goods act rules

I think it only becomes a little more difficult if the company has already "sold" it to the employee. Even a BTW "company" can only contract with the employer and not the employee as for the scheme to work the employee can only be contracting with their employer

RainyDay · 30-11-2015 1:15pm

CramCycle wrote: »

The fact that it is B2W makes no difference to the shop. It is a normal transaction to them. It would be covered under the sale of goods act. Your company would be entitled to a refund although it may be awkward.

I thought the Sale of Goods Act only applied to consumer transactions? In this case, if the company is the buyer, they don't have consumer protection.

traprunner · 30-11-2015 1:35pm

RainyDay wrote: »

I thought the Sale of Goods Act only applied to consumer transactions? In this case, if the company is the buyer, they don't have consumer protection.

Is the company not just a facilitator seeing that it's the individuals money in the long run?

Beasty · 30-11-2015 2:20pm

traprunner wrote: »

Is the company not just a facilitator seeing that it's the individuals money in the long run?

Definitely not - the contract must be between employer and retailer otherwise the scheme does no apply

There is a completely separate contract between employer and employee

Can't seem many retailers kicking up a fuss on such a technicality mind.

eoz · 14-01-2016 7:09pm

How much does it cost now for the full amount on the higher tax??

mel.b · 15-01-2016 8:09pm

does anyone know if there is anything very specific in the revenue information regarding when you can purchase a bike for the second time around? I know it's after 5yrs, and have seen mentioned on here even 5 tax years. My employer (hse) is making us wait until the date of our first deduction from the first time we used the scheme. i used it in April 2011 which means i have to wait until April 2016. Has anyone come up against this or know anyway around it...it's the hse so getting them to change their position is unlikely i guess! I just really don't wan to wait until April

Officer Giggles · 15-01-2016 8:14pm

mel.b wrote: »

does anyone know if there is anything very specific in the revenue information regarding when you can purchase a bike for the second time around? I know it's after 5yrs, and have seen mentioned on here even 5 tax years. My employer (hse) is making us wait until the date of our first deduction from the first time we used the scheme. i used it in April 2011 which means i have to wait until April 2016. Has anyone come up against this or know anyway around it...it's the hse so getting them to change their position is unlikely i guess! I just really don't wan to wait until April

It's 5 tax years so you are allowed go again now if you want, I bought in June 2011 and have my forms gone in for bike no 2

dogsears · 15-01-2016 8:15pm

mel.b wrote: »

does anyone know if there is anything very specific in the revenue information regarding when you can purchase a bike for the second time around? I know it's after 5yrs, and have seen mentioned on here even 5 tax years. My employer (hse) is making us wait until the date of our first deduction from the first time we used the scheme. i used it in April 2011 which means i have to wait until April 2016. Has anyone come up against this or know anyway around it...it's the hse so getting them to change their position is unlikely i guess! I just really don't wan to wait until April

There is and you don't have to wait until April according to the legislation, January is fine BUT you do have to operate within your employers scheme so if they say April, then its April. To change it you'd probably have to convince them they had misunderstood the rules, but they may not care - making you put up with it is probably easier than making a change.

cython · 15-01-2016 8:49pm

dogsears wrote: »

There is and you don't have to wait until April according to the legislation, January is fine BUT you do have to operate within your employers scheme so if they say April, then its April. To change it you'd probably have to convince them they had misunderstood the rules, but they may not care - making you put up with it is probably easier than making a change.

Which would take until at least April anyway in the case of an organisation like the HSE

Beasty · 15-01-2016 9:29pm

dogsears wrote: »

There is and you don't have to wait until April according to the legislation, January is fine BUT you do have to operate within your employers scheme so if they say April, then its April. To change it you'd probably have to convince them they had misunderstood the rules, but they may not care - making you put up with it is probably easier than making a change.

It may be worth asking to see their scheme rules. They may have copied the Revenue requirements and now be misinterpreting what it actually means.

dreamerb · 15-01-2016 11:47pm

mel.b wrote: »

does anyone know if there is anything very specific in the revenue information regarding when you can purchase a bike for the second time around?

Revenue FAQs, here: www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/cycle-work-faqs.pdf

See example at top of page 5.

Absolutely explicit, and just as Officer Giggles and dogsears said, tax years are what Revenue cares about, not anniversaries.

mel.b · 16-01-2016 12:08am

Thanks all. Tax years is confusing me a little now, isn't it from April 1 to March 31? Given that my first deduction was 4th April, if we go by the tax years thing i'd have to wait until then anyway? Although the revenue example is clear that someone who purchased in Dec 09 could purchase again in Jan 2014 (even though that's not quite 5 tax yrs if i am correct?). I have found the HSE circular 002/2010 which clearly states 'any employee may only avail of the exemption once in any 5yr period commencing on the date on which the employee is first provided with the bike and bike equipment' . So although that doesn't appear to be in line with revenue i think the HSE are unlikely to change their mind about the process and i don't know if i really i want to take on the battle.

dreamerb · 16-01-2016 12:15am

mel.b wrote: »

Thanks all. Tax years is confusing me a little now, isn't it from April 1 to March 31?

Not any more. Changed in 2002, and the tax year is now 1 January to 31 December.

mel.b wrote: »

I have found the HSE circular 002/2010 which clearly states 'any employee may only avail of the exemption once in any 5yr period commencing on the date on which the employee is first provided with the bike and bike equipment' . So although that doesn't appear to be in line with revenue i think the HSE are unlikely to change their mind about the process and i don't know if i really i want to take on the battle.

That is annoying, but it would probably take you months to have the battle to make them change their minds and rules anyway.

You can always use the time for extra new bike research...

mel.b · 16-01-2016 12:21am

Thanks, i was getting confused with my annual leave yr which is april to march.
Yes, i think it would take months to battle them, really not worth it.

Unknown Soldier · 16-01-2016 8:00am

mel.b wrote: »

Thanks, i was getting confused with my annual leave yr which is april to march.
Yes, i think it would take months to battle them, really not worth it.

Different companies run different "Fiscal" years for budgets etc. A fiscal year means you have to file your accounts every 12 months and is nothing to do with a calendar year. Your Holidays will run in line with the company's Fiscal/budget year.

Ours used to be April to March. We switch to a Jan-Dec fiscal year about two years ago.

Now I have to be in every new years eve morning for audits

danko82 · 27-01-2016 9:47pm

Hi all,
I would like to apply for bike scheme, I know that I can apply every 5 years.
But for example If I will change in the next year or sooner , my room in a different place where I prefer to use the transport, can I join on transport scheme as well?
Are there some limitations?
Is it possible to join to transport every year and bike every 5 years at the same time?
Thanks

Wishbone Ash · 27-01-2016 9:54pm

What do you mean by 'transport scheme'? Do you mean simply using public transport?

Once you purchase your bike under the Bike2Work scheme, no one will be following you to see what you're doing with it.

loyatemu · 27-01-2016 10:02pm

Yes, you can do B2W and Taxsaver at the same time.

danko82 · 27-01-2016 10:18pm

Wishbone Ash wrote: »

What do you mean by 'transport scheme'? Do you mean simply using public transport?

Once you purchase your bike under the Bike2Work scheme, no one will be following you to see what you're doing with it.

yeah I mean, if I use the bike for 4 months, and than I want to use the bus, Can I save money also with the transport scheme just after few months?

cython · 27-01-2016 10:30pm

danko82 wrote: »

yeah I mean, if I use the bike for 4 months, and than I want to use the bus, Can I save money also with the transport scheme just after few months?

You can avail of both schemes on the same day, if you like, they are in no way mutually exclusive. For example some people might buy a bike to commute to/from a train station, and use their taxsaver ticket from there, or they might use different means on different days. Either way, both savings can be availed of at the same time with no issue.

danko82 · 27-01-2016 10:31pm

cython wrote: »

You can avail of both schemes on the same day, if you like, they are in no way mutually exclusive. For example some people might buy a bike to commute to/from a train station, and use their taxsaver ticket from there, or they might use different means on different days. Either way, both savings can be availed of at the same time with no issue.

thanks a lot. It was that I needed to know.