Bike to Work.

topazkk

Hi folks,
I'm just wondering what experience people have had with the bike to work scheme, I was delighted when it was announced and recently the company I work for invited applicants and posted their repayment terms on our notice board, unfortunately the want repayment in full over 12 weeks rather than 12 months and because the hybrid bike I fancied cost €750 this make it unfeasible for me, so much for painless repayment. Has anyone else encountered similar from their employer? :(:(

Still no offer of this where I work, so I'd be more than happy with a 12 week repayment schedule!

Ryaner

We are doing it in work and for some reason my place is much happier to do it over 12 months than over a shorter period. Some accounting thing.

Morgan

You could always save up until you're in a position to pay the money back over 12 weeks. Just means you'll have to wait a while for your new bike.

alfalad

My work place is doing it over 12 months and actually forgot to take it out of my first pay cheque so i still haven't paid anything for the bike i got in the first week of jan! But back to the point they decided 12 months was best!

Hungrycol

topazkk wrote: »

Hi folks,
I'm just wondering what experience people have had with the bike to work scheme, I was delighted when it was announced and recently the company I work for invited applicants and posted their repayment terms on our notice board, unfortunately the want repayment in full over 12 weeks rather than 12 months and because the hybrid bike I fancied cost €750 this make it unfeasible for me, so much for painless repayment. Has anyone else encountered similar from their employer? :(:(

Could be a typo?

We're doing it over 4 months. I think mainly because there's too much instability in employment where 4 months is a long time! That way there's no big balance to recoup from the employee in the event that their employment is terminated or they leave.

blorg

Save up until you can afford it, you will still get the tax savings. I would be happy with immediate replayment myself.

What tax band are you on? Remember the repayments come out of your salary before tax so effectively you are not repaying the whole €750.

jeffontour

My place let me determine the period for repayment up to a limit of twelve months which is the limit imposed by Revenue I believe. I spent a bit more than the scheme 1000 limit so they paid up front for the lot, I re-pay them the amount over the limit for the scheme from my post tax income in one payment and then repay the rest pre tax over the agreed period.

I was amazed at how simple they made it!

c montgomery

Was hoping to avail of this in work but HR are still working on it.

Can anyone tell me if their company restricts them to purchasing from a particular shop or can you buy from any shop in the country???

Deisetrek

Myth wrote: »

Still no offer of this where I work, so I'd be more than happy with a 12 week repayment schedule!

Yeah Myth , we got a big fat "no" when we asked , got the 'ol " under the present circumstances " one , I too would have been glad to pay under any repayment schedule ..........lucky baaaaaa************rds

c montgomery

Deisetrek wrote: »

Yeah Myth , we got a big fat "no" when we asked , got the 'ol " under the present circumstances " one , I too would have been glad to pay under any repayment schedule ..........lucky baaaaaa************rds

Why would your company use the "under the current circumatances" line.

The bike to work scheme saves you money on tax and actually saves your employer money on PRSI. If you buy a bike for 1000 euro they you save you to 470 on the price and they save 108 on PRSI. It actually saves them money. In these "present circumstances" this is exactly the type of thing they should be promoting.

Deisetrek

c montgomery wrote: »

Why would your company use the "under the current circumatances" line.

The bike to work scheme saves you money on tax and actually saves your employer money on PRSI. If you buy a bike for 1000 euro they you save you to 470 on the price and they save 108 on PRSI. It actually saves them money. In these "present circumstances" this is exactly the type of thing they should be promoting.

We're on short time with a lot of redundancies expected so they felt it might be in bad taste to be seen to getting involved with the scheme when people were loosing their jobs . Most of the employees under threat would not be up to speed with the in's and out's of the Bike To Work scheme , they would only see a "select few" getting a deal on a bike whilst the company was cutting costs , have a point I suppose ..........

xz

I haven't really looked into this, but, as a known cyclist in my place of work, I was approached and asked would I be interested in getting a bike on the scheme.
This could be my big chance to go fixie:D

daroadlescycled

I all so got " under the presence circumstances" from HR even though local managment agreed to it. I'm hopin to change there minds over the next few weeks . Any suggestions are welcome.

douglastubbs

c montgomery wrote: »

Was hoping to avail of this in work but HR are still working on it.

Can anyone tell me if their company restricts them to purchasing from a particular shop or can you buy from any shop in the country???

No restriction on where you buy it. It does make it easier to have it bought in Ireland but as long as it is within the EU it should be relatively easy. Outside the EU, it becomes a real pain with customs duty, accounting for vat.

humbert

Was offered to us in my place. Think it's coming out the following month(just got it this month) but I don't mind.

vektarman

No sign of the cycle-to-work scheme in our place yet, and we've over 2,000 employees, maybe the logistics of it are too much for the company.

topazkk

Thank for opinions guys, due a bonus next month for our incentive scheme and company performance in 2008, (before the arse fell out of the world ), I usually get screwed by the taxman on this so I may be able to use it as part payment and also the Specialized Sirrus model I was after has become cheaper since I'd last priced it at my LBS, so it might happen yet. :cool:

iarann

Deisetrek wrote: »

Yeah Myth , we got a big fat "no" when we asked , got the 'ol " under the present circumstances " one , I too would have been glad to pay under any repayment schedule ..........lucky baaaaaa************rds

My understanding is that the repaymens are a max of 12 months but no min, so you can repay in one month, two months etc. Write two cheques (post date one) and pay over two months.

if they are using the "under present circumstances" then you might mention that it will save them money as they wont have to pay Employer PRSI 12.5% I think on the cost of the bike, ie they save €125 for every employee that takes up the 1,000.

Plus they get that warm fuzzy feeling from keeping you happy, unless you look fo them to layout for a bike rack, showers, changing rooms etc etc .:rolleyes:

BostonB

Where I am they insist on it being done over the current year. So if you buy in Nov you only have 2 months to pay it.

Cabaal

Its operating where I work the past few months, repayments are set at 12 months and luckily they supply two-three sets of bike racks and have a shower...which is nice

Beasty

iarann wrote: »

My understanding is that the repaymens are a max of 12 months but no min, so you can repay in one month, two months etc. Write two cheques (post date one) and pay over two months.

if they are using the "under present circumstances" then you might mention that it will save them money as they wont have to pay Employer PRSI 12.5% I think on the cost of the bike, ie they save €125 for every employee that takes up the 1,000.

Plus they get that warm fuzzy feeling from keeping you happy, unless you look fo them to layout for a bike rack, showers, changing rooms etc etc .:rolleyes:

"Writing cheques" does not work under the bike to work scheme. To get the tax (and PRSI) benefits the employer needs to put in place "salary sacrifice" arrangements (unless they are giving you the bike!) - this means the payments need to be deducted directly from salary payments

The deductions can, however be taken over whatever period is agreed with the employer, up to 12 months.