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

Beasty · 29-02-2012 11:12am

cL0h wrote: »

Has anyone here actually purchased a bike from the UK under the Irish scheme. I am talking to both Wiggle and my employer at the moment.
My employer reckons that Wiggle need to be signed up to the IRish scheme. The OPW reckons they are but can anyone confirm the process is as straightforward as requesting an invoice and having my employer pay it.

The bike can be bought from anywhere, and many on here have bought from the UK. There is no "official list" of suppliers, although employers can specify certain suppliers if the wish. Suppliers do not need to sign up to anything (unless the particular employer wishes them to)

le petit braquet · 29-02-2012 1:41pm

Beasty wrote: »

Surveyor11 wrote: »

Ok, fair enough - that's a point. But the admin end of things and tax relief AFAIK is pretty similar.

The Irish scheme is both simpler and probably a bit more generous (even though the financial limit is lower at €1k compared to £1k, under the UK scheme the employee would still need to pay market value to purchase the bike at the end of the scheme). Unfortunately however the rules are actually quite different, which makes the admin of running both schemes a bit more cumbersome

I work for Irish subsidiary of a UK parent and payroll is administered in the UK. We had a bit if a battle about the Bike to Work scheme as they were only prepared to offer the UK scheme, complete with ultimate purchase by employee. Eventually by pointing out that the admin of the Irish scheme is simpler and analogous to what is done for the annual travel ticket, they eventually conceded. Unfortunately they restricted purchases to Halfords. Anyway it's worth clarifying that it is the Irish scheme that they are offering.

mccarrd2 · 12-03-2012 12:07pm

Im considering getting a new bike on the BTW scheme for a second time with a new employer. This thread is very good, but has anyone actually done this, and got the tax relief on the second bike?

Foxytrot · 16-03-2012 2:58pm

Hi,

Has any one had problems with the Cycle to work scheme. I decided to upgrade my bike through it and went into a recommended shop and picked out my lovely new bike! I had the invoice sorted with accounts in my office and went into shop to let them know it had been processed.

They said they would order it on the Monday and should have it within a week. That was a month ago and still no joy with bike.

I have called into the shop, rang them couple of times each week. I have gotten number of different excuses and never gotten a call back until i have rang and given out. At first i was told it would be in next week, then they missed delivery, then the person who looks after administration was sick, that it was ordered but stuck in transit....it has become laughable at this stage. Most recent was that it wouldn't be in stock until april. I have rang out of things to say to them

I have asked the office in work and they said that there is no limit to when the supplier has to provide the bike by.
Has anyone had any issue with getting their bike?
The shop is well recommended and other people have gotten their bikes from them.

Beasty · 16-03-2012 3:10pm

I've moved it into the megathread, although I guess it's more a supply problem than a BTW issue. It's probably not the retailers fault (other than their failure to manage your expectations) - if they cannot get hold o the bike form the distributor, you may find other retailers have the same issue with that bike. I think it's just a matter of pestering them a bit to make sure you don't drop down any "priority list" (as a result of someone else pestering them more;))

Foxytrot · 16-03-2012 3:51pm

It has gotten to a stage now where they don't answer any emails and strangely enough there landline number isn't working anymore. I think i am on a first name basis with all of the staff!

I wouldn't mind if they said it will be this amount of time due to distributor issues but to be told it will be in in the morning and to go in and find out its not there twice now is starting to get annoying. I was told they would ring me this morning once it had arrived and had been put together.....no joy...no call. Going to try and get off early to go to the shop.....

wackojacko1979 · 19-03-2012 11:32am

Hi Folks,
Great thread, very informative. My question is, does having a company van which is used for commuting to work and travelling for work exclude me from the CTW scheme? My boss seems to think it does but he may just not want to get involved in the scheme:(

Beasty · 19-03-2012 12:33pm

wackojacko1979 wrote: »

Hi Folks,
Great thread, very informative. My question is, does having a company van which is used for commuting to work and travelling for work exclude me from the CTW scheme? My boss seems to think it does but he may just not want to get involved in the scheme:(

No it does not - you are still required to intend using the bike mainly for commuting though, so if your work requires you to drive in every day in the company van, then I can see where your employer would be coming from

If your employer offers the scheme anyway, he cannot exclude you, provided you are subject to Irish PAYE and intend using the bike mainly for commuting. However there is absolutely no onus for him to offer the scheme if he does not already do so.

Hungrycol · 20-03-2012 12:27am

wackojacko1979 wrote: »

Hi Folks,
Great thread, very informative. My question is, does having a company van which is used for commuting to work and travelling for work exclude me from the CTW scheme? My boss seems to think it does but he may just not want to get involved in the scheme:(

What Beasty said but I wonder if a "qualifying journey" would also consider leaving your van in a car park and cycling to it from home and from it in the evening. Thereby using it for part of your commute similar to people who cycle to the train station and bus stops which in my understand of the scheme is allowable.

Beasty · 20-03-2012 9:06am

Hungrycol wrote: »

What Beasty said but I wonder if a "qualifying journey" would also consider leaving your van in a car park and cycling to it from home and from it in the evening. Thereby using it for part of your commute similar to people who cycle to the train station and bus stops which in my understand of the scheme is allowable.

That would qualify.

wackojacko1979 · 23-03-2012 9:46pm

Hey folks, Have been on to my boss again and I think its a no-go:(!! Fortunately, my wife who happens to be a teacher is suddenly thinking of buying a bike;). My question is, is there a timeframe on the salary sacrifice. Some people have told me that if she applies at the wrong time the salary sacrifice might all come out in a couple of months which is not affordable to me. Any insight from all the experts out there?:D
Thanks in advance

le petit braquet · 23-03-2012 11:10pm

wackojacko1979 wrote: »

Hey folks, Have been on to my boss again and I think its a no-go:(!! Fortunately, my wife who happens to be a teacher is suddenly thinking of buying a bike;). My question is, is there a timeframe on the salary sacrifice. Some people have told me that if she applies at the wrong time the salary sacrifice might all come out in a couple of months which is not affordable to me. Any insight from all the experts out there?:D
Thanks in advance

From http://www.education.ie/admin/servlet/blobservlet/cl0036_2011.pdf?language=EN&igstat=true it appears that the deductions for teachers must finish by November in any year. Therefore the earlier in the year you purchase the bike, the longer the period of salary deduction available

ixtlan · 07-04-2012 3:14pm

Sorry, if this is an obvious question, but I've read this thread and other info and not found a definitive answer.

If I leave my job or am made redundant during the 12 month repayment period, is it the case that I then lose the tax relief for the remaining period? To clarify.. I buy a bike for 1000e, am due to in effect pay approx 500e over the course of a year, I leave after 6 months, have paid 250e, and then have to pay 500e from my final paycheck?

That seems to be what this says on the bike2work.ie web site
What happens if I leave my job before I’ve finished paying for my bike?
Under the terms of the purchase agreement, the agreement to pay your loan is "non-cancellable". This means that you will need to settle all outstanding monies before you leave. The outstanding balances will be deducted from your final net salary payment. Settlement will be from net pay because once you leave the employment, you also leave the bike scheme, and are no longer eligible for tax deductions.

Maybe I mis-understand because I would have expected more people to be worried about the effect of leaving their job for whatever reason.

Ix.

hesker · 10-04-2012 8:44pm

I would take that to mean you settle up the balance of whatever is left in the €500 in your final paycheck. So in effect you pay the same amount only over a shorter period.

ixtlan · 10-04-2012 8:57pm

I agree that's the sensible interpretation, but it is very ambiguous. I mean, the payments for the purchaser always come from net pay. The only relevance to gross/net is that each month the total without tax relief is subtracted from gross pay. By insisting that the outstanding payments will be from net pay suggests that the tax relief part is lost. I found some comments about the UK scheme (which I understand is different) where the understanding was that leaving the job did lose the purchaser the remainder of the tax relief.

I think you are right, but such lack of clarity annoys me!

Ix.

Mr.David · 12-04-2012 9:10am

I presume I could pay it back all in one month as opposed to over 12?

Main reason being that I'm not sure I'll still be here in 12 months time and don't want to end up losing all the tax benefit!

Anyone done it? Any reason not to?

Idleater · 12-04-2012 9:41am

Mr.David wrote: »

Anyone done it? Any reason not to?

I had to.
The benefit for you to split it over a year is that it's effectively an interest free loan. You don't pay less /more either way it's just x or 12 times x/12

irishbuzz · 24-04-2012 12:15pm

Hi All,

My company is running the scheme through Bikes4work (One4All). They usually open up a two week window once a year for applications. This year I decided to go for it and with the deadline closing I went into a bikestore and had them draw up a quote on a particular road bike (plus accessories) for the full €1000 and sent of my application with this.

While waiting on the voucher I actually ended up becoming more interested in the technical aspects and now I kinda wish I would have gone for a better spec'd bike and maybe even a different brand. Yep, good ol' buyer's remorse! Anyway, I have just received my voucher in the post and I notice that it is not specifically made out to the original store.

My question is:
(A) - Can I use this voucher to I buy a better spec'd bike in the same store?
(B) - Could I use the voucher elsewhere in a different bikestore?

My apologies if this question has been asked previously. I honestly searched.

duffyshuffle · 16-05-2012 4:33pm

If I work for two employers

1st employer - I earn €40,000 but they do vouchers for b2w
2nd employer - I earn €10,000 but they allow you to buy bike anywhere with cheque

If i wanna use the 2nd employer, do I still get 50% off the €1,000?

Thanks

Idleater · 16-05-2012 7:59pm

duffyshuffle wrote: »

If I work for two employers

1st employer - I earn €40,000 but they do vouchers for b2w
2nd employer - I earn €10,000 but they allow you to buy bike anywhere with cheque

If i wanna use the 2nd employer, do I still get 50% off the €1,000?

Thanks

Your annual salary is 50k, so assume that your pension and other deductions allow you the 1000 at the high rate then yes.
Presumably with two salaries you do an end of year tax return so your income from the second job is 9k effectively.

duffyshuffle · 16-05-2012 8:21pm

Idleater wrote: »

Your annual salary is 50k, so assume that your pension and other deductions allow you the 1000 at the high rate then yes.
Presumably with two salaries you do an end of year tax return so your income from the second job is 9k effectively.

Ok thanks! I know it appeared possibly a stupid question!

Think have head around it fully now, so gross pay is down €1,000 no matter what, so therefore i'm not paying tax that I 'should' be paying of €480± with either employer, so its not the employer that matters.

2wheels in Sandymount told me it does matter :rolleyes:

MAR86 · 11-06-2012 10:19am

Hi Guys,

I read all the posts but I couldn't find anything on this. It is a silly question, but maybe you can help me.

As far as I understand the employer cannot claim an input credit for the VAT paid. Is the VAT amount a cost of the bike then? Let's say the bike is 400 * 23% VAT = 492. Is this the amount of salary sacrifice or just the cost of the bike itself?

Thanks a lot!!!

Beasty · 11-06-2012 10:41am

MAR86 wrote: »

Is the VAT amount a cost of the bike then?

Yes

MAR86 wrote: »

Let's say the bike is 400 * 23% VAT = 492. Is this the amount of salary sacrifice or just the cost of the bike itself?

The salary sacrifice should be 492

MAR86 · 11-06-2012 10:53am

Thanks a lot!!! You were really fast!!!

Beasty · 11-06-2012 12:02pm

MAR86 wrote: »

Thanks a lot!!! You were really fast!!!

... that's what I try to keep telling myself

Hurler85 · 14-06-2012 10:32am

Is there a minimum salary that you be on before you make any savings on the BTW scheme? I am on a graduate salary of €21,000 so I would just like to clarify that it would be worth my while to avail of the scheme.

awec · 14-06-2012 10:38am

http://www.biketowork.ie/employee-information/

Beasty · 14-06-2012 11:39am

Hurler85 wrote: »

Is there a minimum salary that you be on before you make any savings on the BTW scheme? I am on a graduate salary of €21,000 so I would just like to clarify that it would be worth my while to avail of the scheme.

If you are currently paying tax under PAYE, there's something to save. If you're not (and it's largely dependent on what tax credits you get), there's not

seanin4711 · 14-06-2012 5:41pm

Can anyone point me in the direction of a decent shop so as to buy the above bike?
The choice in Galway is so-so.
Great Frames (Felt,BH,Cube etc) but sora groupsets on everything!!!
They really can see the punters cominng with putting the bog standard stuff on the bikes thereby maximising profits!
j

irishbuzz · 19-06-2012 2:29pm

I never actually came back to say how I got on, but I guess it's better late than never.

irishbuzz wrote: »

Hi All,

My company is running the scheme through Bikes4work (One4All). They usually open up a two week window once a year for applications. This year I decided to go for it and with the deadline closing I went into a bikestore and had them draw up a quote on a particular road bike (plus accessories) for the full €1000 and sent of my application with this.

While waiting on the voucher I actually ended up becoming more interested in the technical aspects and now I kinda wish I would have gone for a better spec'd bike and maybe even a different brand. Yep, good ol' buyer's remorse! Anyway, I have just received my voucher in the post and I notice that it is not specifically made out to the original store.

My question is:
(A) - Can I use this voucher to I buy a better spec'd bike in the same store?
(B) - Could I use the voucher elsewhere in a different bikestore?

I ended up bringing my voucher to a different bikeshop and purchased a better bike without any problem. I had the shop provide me with a new quote for the bike and I handed it over to the folks at work who were handling the scheme and again that was fine. So, I guess the answer to A & B were Yes.

Oh and the bike's been going great since

mossey79 · 25-06-2012 11:43am

Any know if there is a delay in issueing the vouchers at the moment. The money was taken out of my wages on the 8th of June, but I still have not received the voucher. I've contact our HR on this and they are trying to find out what is going on, as it usually takes 7-10 days for the voucher to come.

slookie · 27-06-2012 10:56am

Just a quick question. I got a cheque off accountant this morning for a bike Im buying in Kilkenny. He said "Oh just so you know, that has to be paid out of your wages before year end"...as in By December? Is this right??

Beasty · 27-06-2012 11:14am

slookie wrote: »

Just a quick question. I got a cheque off accountant this morning for a bike Im buying in Kilkenny. He said "Oh just so you know, that has to be paid out of your wages before year end"...as in By December? Is this right??

Depends - if that's how your employer set up the scheme then yes. You should have signed a salary sacrifice arrangement to this effect

slookie · 27-06-2012 11:20am

Well, he has only ever done it for one other person and she is on hols at moment so I can't ask her. He said, "Oh it's not my decision, that's just the way the scheme works"???

Idleater · 27-06-2012 4:11pm

As Beasty said, each employer has to administer the scheme in their own way. In my case I had to pay it out in one go from my next paycheck.

emma62 · 01-07-2012 8:45pm

Hi all just a quick question about the btw scheme. i was in a bike shop today, i was told by the shop that there a minimum spend of 500€ is this true. ive been googling all afternoon and i cant find anything about a minimum spend. i didnt go with anything there cause im hoping to go to another shop in a few days but i dont want to be hit with the same thing again.

Cee-Jay-Cee · 02-07-2012 12:09pm

That is something that particular bike shop has in place but there is no lower limit applied by the actual scheme itself.

Beasty · 02-07-2012 12:16pm

Bike shops do not participate in the scheme. They simply sell bikes (and other stuff of course). Your employer can buy from any shop it wishes - I'm sure the one in question does not wish to turn business away

emma62 · 02-07-2012 1:06pm

thanks for the replies, i have been in contact with 2 shops this morning and they said there was no minimum spend. The other shop just wasnt bothered after i said about the btw scheme.

Beasty · 02-07-2012 1:28pm

A bit strange for them to turn away business, unless they are expecting employers to insist on some additional discount

awec · 02-07-2012 1:56pm

Yea, from the shop's point of view it should make little difference.

I would have thought BTW sales would make up a significant portion of custom in bike shops these days?

uvox · 18-07-2012 11:43pm

(Not sure if this should be in the Political Action thread, but here goes)

Was in a Dublin bike shop over weekend and one of the staff mentioned there was talk of the 'bike to work' tax relief scheme being modified so that employees could avail of the scheme every three years (I believe it is five now). Anyone know if there is a lobby underway to this intent?

All for it myself. Where's our Bill Cullen to campaign for a bike scrappage scheme! LOL.

Seriously, what do cyclists think of this. Would they change bikes every three years (accessories and ancillary stuff excepted) anyway? The scheme appears to be a great success.

route66 · 19-07-2012 12:40am

I'd be interested - who wouldn't? Can't see it happening though ...

jaqian · 19-07-2012 11:18am

route66 wrote: »

I'd be interested - who wouldn't? Can't see it happening though ...

Id be interested as well. Think five years is a long time to wait for upgrade.

seamus · 19-07-2012 11:25am

I've be very interested too, considering that my 3 years are coming to an end this year

I think a change to 3 years would really only pander to the likes of us and wouldn't really have an effect on the rates of those cycling to work - this is the aim of the scheme, remember?

5 years is reasonable timeframe for a commuter bike to last. In fact I would say that most commuter cyclists will happily keep their commuter bike for ten years or more, so long as it doesn't give lots of hassle.

The five-year period is probably seen as a way of rekindling the idea in people who may do it now and again, but after five years the bike has started to look a bit battered and rusty and as such is getting progressively less use. A new bike might spur them into getting back on it.

Crow92 · 19-07-2012 11:36am

I don't think it'd only be of interest to the likes of us, there are plenty of people who spend very little on their first btw and get a cheap bike, 3 years seems long enough the these sort of people for their cheap bike to fall apart/ want to upgrade.

couerdelion · 19-07-2012 11:51am

Yep, a few lads in work bought hybrids and a year later are raging that they have to wait 4 more years before they can get a better bike to get into work.

dub_skav · 19-07-2012 12:10pm

It is only meant to be a Bike to Work scheme, so upgrades shouldn't really come into it.
I would see upgrades as for people who wish to cycle more often / further, however any bike should be sufficient for somebody who wants to cycle to work.

5 years should be sufficient for this purpose. I cycled to school, college and work on a bike for 8 years before it was stolen and I am up to 4 years commuting on my current bike with no plans to change it.

I also have a road bike for longer spins, but that is my own choice and not the point of the scheme.

If people do not maintain their bikes correctly, again that is not the scheme's fault.

Seve OB · 19-07-2012 1:36pm

I would think most people will buy one bike and expect it to last as long as possible, so recducing it to 3 years will really only appeal to the Bike enthuasiast.

Or someone who has had their bike nicked...............

G rock · 19-07-2012 1:50pm

I guess you have to be lucky enough to be in the same job for five years in order to have no opportunity to use the scheme again.

you can use it again If you move employment (i think)

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

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