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

trad · 05-09-2011 9:53pm

The catch is you have to use the bike not just hang it in the garage and admire it.

dahat · 05-09-2011 9:55pm

Also used said scheme,cracking initiative.only good thing the greens ever did

ToadVine · 07-09-2011 4:28pm

Hello.

I'm in the process of getting my new bike under the cycle to work scheme. The only slight drawback is that I have to have the deductions taken from my salary between now and the end of November (I was hoping to spread them out over 12 months). When I asked our payroll people about this they said that I could chance leaving getting the bike until after November, but there would be no guarantee the cycle to work scheme would still be available after that date.

So, has anyone heard this, and are my payroll people correct in saying this scheme may be cancelled after November?

seamus · 07-09-2011 4:33pm

Budget 2012 will be on the 6th or 7th of December, at which point they could well scrap the CTW scheme, but it's unlikely that they will - there's very little reason to as it costs practically nothing.

If they do end it, it will likely end on 31st December.

Some companies individually have put a time limit on it, so they may be saying that they will no longer be offering it after November, as they're entitled to do. But there's no reason to think that the Government will cancel it in the budget.

Roger Hassenforder · 07-09-2011 8:42pm

ToadVine wrote: »

Hello.

I'm in the process of getting my new bike under the cycle to work scheme. The only slight drawback is that I have to have the deductions taken from my salary between now and the end of November (I was hoping to spread them out over 12 months). When I asked our payroll people about this they said that I could chance leaving getting the bike until after November, but there would be no guarantee the cycle to work scheme would still be available after that date.

So, has anyone heard this, and are my payroll people correct in saying this scheme may be cancelled after November?

talks of ours ending in Nov as well, but i'f my payents spread over 52 weeks starting from August last

andyjo · 08-09-2011 2:46am

wonder if the government ever sends out an inspector to check the b2w scheme ? A mate of mine who got non cycling stuff on it is ready to say the bike was stolen.

seamus · 08-09-2011 9:04am

andyjo wrote: »

wonder if the government ever sends out an inspector to check the b2w scheme ?

It's self-regulating in much the same way that income tax is. That is, you can file any old nonsense that you like, but if you get audited revenue will shaft you. Inspectors for specific things aren't that common, afaik Revenue tend to carry out audits of the entire company rather than looking specifically at B2W or PRSI or whatever.

A mate of mine who got non cycling stuff on it is ready to say the bike was stolen.

There's no provision in the scheme for replacement of stolen bikes. You can only avail of the scheme once every five years, bike stolen or otherwise.

IrishHomer · 17-09-2011 11:29pm

Does anyone know can you avail of a set of cheaper bikes for all the family and. Make the value to approximately €1,000 and get all 3 bikes under the one application under the btw scheme?

Beasty · 17-09-2011 11:32pm

IrishHomer wrote: »

Does anyone know can you avail of a set of cheaper bikes for all the family and. Make the value to approximately €1,000 and get all 3 bikes under the one application under the btw scheme?

No - one bike for the employee who must intend using that bike mainly to cycle to work ...

flying11 · 18-09-2011 1:27pm

Hi guys,
im a long time viewer of this forum and first time poster.
I have just learned that i am eligible for the bike to work scheme and i have been informed that i can use chain reaction cycles as the supplier. However i am slightly confused about which forms i need to fill in. As the department of education is my employer do i fill out this form? - http://www.education.ie/admin/servlet/blobservlet/cl0036_2011_form.doc?language=EN&igstat=true

However on the chain reaction cycles website there is a different form to fill out- http://www.chainreactioncycles.com/Interface/Images/restyle/Full-info-pack.pdf
Which form do i fill out? And how do i go about getting an invoice form chain reaction cycles without actually buying the bike? Sorry if these questions have been asked before but a search turned up nothing for me.
Thanks :cool:

Masala · 18-09-2011 2:41pm

As the department of education is my employer

Do you not have to pay this all back by November 2011??? That is my reading of the current DOE arrangement. To me this timescale is very short if you are paying on a monthly salary deduction.

I was holding out for the Dec11 Budget and hoping the scheme continues - which I can't see why not! Am planning to buy my Bike in December and then paying off over 11 months to Nov 2012 on my salary deductions!!!

Beasty · 18-09-2011 2:53pm

flying11 wrote: »

Hi guys,
im a long time viewer of this forum and first time poster.
I have just learned that i am eligible for the bike to work scheme and i have been informed that i can use chain reaction cycles as the supplier. However i am slightly confused about which forms i need to fill in. As the department of education is my employer do i fill out this form? - http://www.education.ie/admin/servlet/blobservlet/cl0036_2011_form.doc?language=EN&igstat=true

However on the chain reaction cycles website there is a different form to fill out- http://www.chainreactioncycles.com/Interface/Images/restyle/Full-info-pack.pdf
Which form do i fill out? And how do i go about getting an invoice form chain reaction cycles without actually buying the bike? Sorry if these questions have been asked before but a search turned up nothing for me.
Thanks :cool:

You fill out your employer's form. The CRC one is simply for their internal purposes and is designed for the UK rather than Irish scheme (it includes helmet on on a zero VAT-rated basis for example, whereas they are subject to VAT in Ireland)

Speak to your employer about the invoice point - I'm sure they've used CRC before. If they don't give enough to deal with your queries, then speak to CRC, who again I'm sure will have experience of dealing with the education department

flying11 · 18-09-2011 4:17pm

Masala wrote: »

As the department of education is my employer

Do you not have to pay this all back by November 2011??? That is my reading of the current DOE arrangement. To me this timescale is very short if you are paying on a monthly salary deduction.

I was holding out for the Dec11 Budget and hoping the scheme continues - which I can't see why not! Am planning to buy my Bike in December and then paying off over 11 months to Nov 2012 on my salary deductions!!!

my understanding of this was that once the bike is purchased before november that you pay it off for 12 months from the date of purchase? btw thanks for the info beasty, im filing out the proper form right now!

Masala · 18-09-2011 7:16pm

Flying 111

...just check it out!!

That's not my understanding.... November of the year of purchase is the cut-off!!! If you get anything definitive on this.. will you let this forum know. I would love to get my bike earlier and pay off over the next 11/12 months... but my advice says that I need to hold off til Dec/Jan or so!!!

arch staunton · 18-09-2011 8:03pm

can a person getting a social welfare payment avail of the bike to work scheme,Thank you

Beasty · 18-09-2011 8:06pm

arch staunton wrote: »

can a person getting a social welfare payment avail of the bike to work scheme,Thank you

So long as you are employed and paying tax under PAYE (and your employer operates the scheme), yes. If you're below the tax threshold though, there's nothing to save.

FTGFOP · 21-09-2011 3:56pm

What's the minimum travel distance required to avail of the bike to work scheme?

Beasty · 21-09-2011 3:57pm

There is none - you must simply intend using the bike mainly for commuting to work

I'm transferring this to the BTW mega thread

woody1 · 26-09-2011 1:40pm

sorry this question may have been asked, but im on lunch and in a hurry..

does the retailer have to be registered with the bike to work scheme, i ask because ive been told they have but ive seen that the bike can be bought from abroad so how would that be possible...
itd be very handy for me if they didnt..

cheers

seamus · 26-09-2011 1:47pm

No, the retailer doesn't have to be registered. Any new bike purchased from any retailer anywhere in the world is covered by the scheme, provided that your employer buys it.

Some employers (usually larger ones), have a set list of retailers that they will only buy from, but they're not otherwise limited by Revenue in who they can buy the bikes from.

Surveyor11 · 28-09-2011 4:12pm

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 · 28-09-2011 4:25pm

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 · 28-09-2011 4:32pm

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_ · 28-09-2011 4:53pm

Yep, that should do it.

Idleater · 28-09-2011 5:03pm

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 · 29-09-2011 8:52pm

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 · 29-09-2011 8:55pm

Yes.

Beasty · 29-09-2011 9:18pm

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 · 29-09-2011 9:21pm

Thanks guys she was worried it wasnt allowed

ED E · 04-10-2011 1:16am

#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 · 04-10-2011 7:49am

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 · 04-10-2011 2:12pm

Gonna be very pov then

doMore · 04-10-2011 2:56pm

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 · 04-10-2011 3:15pm

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 · 04-10-2011 3:25pm

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 · 04-10-2011 3:34pm

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 · 04-10-2011 3:47pm

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

gman2k · 04-10-2011 6:22pm

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

Lumen · 04-10-2011 6:50pm

gman2k wrote: »

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

No.

Idleater · 04-10-2011 7:40pm

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 · 04-10-2011 7:50pm

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 · 04-10-2011 9:56pm

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 · 05-10-2011 9:15am

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 · 05-10-2011 9:28am

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 · 05-10-2011 9:39am

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 · 05-10-2011 10:51am

Lumen wrote: »

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

Apologies, I failed to note the just.

grey_man · 12-10-2011 5:22pm

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 · 12-10-2011 5:30pm

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 · 12-10-2011 5:33pm

[Thread merged with megathread ]

reilig · 12-10-2011 8:26pm

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!!

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

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