cycle to work schema

mmalaka

Hi,

I talked to my boss and they accept to go with the cycle to work schema. but the schema is not very clear to us on how it would work.

our understanding is that it should not add any extra cost on the company. correct?

so whats the next step now?

I guess what I am looking for is a simple guide to buy a bike that we can follow to make this as easy as possible on both of us (me & the company)

Any advice please?

petethedrummer

Not meaning to be abrupt (but it gets discussed alot):

http://wiki.boards.ie/wiki/BikeToWork

http://www.google.ie/#hl=en&source=hp&q=site%3Aboards.ie+bike+to+work&aq=f&aqi=&aql=&oq=&gs_rfai=&fp=756913b5585bff65

http://www.boards.ie/vbulletin/showthread.php?t=2055400577

mmalaka

Thanks for those links....

I am confused on how this work:

so if I wanted to buy a bike that would cost 700Euro...
So I inform the company and they buy all ok...
I am on higher taxt rate so is this mean next salary will be less of about 350Euro?

Schrodingercat

it would be less 700 gross (if you get the whole thing deducted in one go, you can spread it out a bit if agree that with the company)

So it would be approx 350. Company doesn't have to make any declarations to revenue but have to keep receipts in case of audit. They can't claim back vat on the purchase. Just remember you can only do it once every 5 years, so no point scrimping. If possible spend the 1000 euro.


It actually saves the company money because they don''t pay as much employers prsi

mmalaka

Schrodingercat wrote: »

it would be less 700 gross (if you get the whole thing deducted in one go, you can spread it out a bit if agree that with the company)

So it would be approx 350. Company doesn't have to make any declarations to revenue but have to keep receipts in case of audit. They can't claim back vat on the purchase. Just remember you can only do it once every 5 years, so no point scrimping. If possible spend the 1000 euro.


It actually saves the company money because they don''t pay as much employers prsi

Thanks for your reply

So if my take home will be approx 350 less. correct?:o

Beasty

mmalaka wrote: »

Thanks for your reply

So if my take home will be approx 350 less. correct?:o

Correct

Net position - you have a bike worth 700, and only paid 350 for it so you have saved 350

mmalaka

So how the company should record this in their system? should it be recorded as benefit in kind?

mike12

Not to be recorded as a Benefit in Kind as that means u pay more tax the full cost of the bike should be deducted from your pay before tax and prsi are caculated.
Mike