Bike to Work scheme... transferrable?

streacy

Surely this isn't legal?
http://adverts.ie/301084
I thought there were all sorts of rules about having to use the bike for work (i.e. not buying bikes for the kids) etc. Though it seems strange that vouchers would be allowed in the first place...

Gillo

They aren't meant to be transferable under the scheme, sounds a bit risky to me to be honest.

Beasty

From www.bikes4work.ie

You collect your Bikes4work Gift Voucher from your employer and present it to your chosen store with your original quote and photo identification

Hence that voucher is worthless to anyone other than the original employee

mike12

There is nothing actually on the vouchers that the shop can check they just say bike to work its not in the spirit of the scheme and is not sure about the legality of it but u wont get caught.
Mike

penexpers

Ad is gone now anyway.

streacy

mike12 wrote: »

There is nothing actually on the vouchers that the shop can check they just say bike to work its not in the spirit of the scheme and is not sure about the legality of it but u wont get caught.
Mike

I had a feeling that was about the size of it alright... I doubt Revenue would be too impressed if that kind of trading was widespread but it's their own fault if they don't enforce their rules properly.

Lumen

streacy wrote: »

I doubt Revenue would be too impressed if that kind of trading was widespread but it's their own fault if they don't enforce their rules properly.

No it isn't.

streacy

Isn't impressed or isn't their fault? I'm suggesting that allowing a voucher scheme is silly if it's so easily circumvented... if there's a loophole there'll always be someone prepared to make a quick buck.

digger2d2

streacy wrote: »

I had a feeling that was about the size of it alright... I doubt Revenue would be too impressed if that kind of trading was widespread but it's their own fault if they don't enforce their rules properly.

Wrong....

Lumen

streacy wrote: »

Isn't impressed or isn't their fault? I'm suggesting that allowing a voucher scheme is silly if it's so easily circumvented... if there's a loophole there'll always be someone prepared to make a quick buck.

Isn't the Revenue's fault, and there is no loophole. A loophole is a legitimate way of contravening the spirit of legislation whilst staying within the letter of it.

In this case the employee is simply engaging in tax fraud. Both employee and employer could be in deep poo if the Revenue find out.

Beasty

streacy wrote: »

Isn't impressed or isn't their fault? I'm suggesting that allowing a voucher scheme is silly if it's so easily circumvented... if there's a loophole there'll always be someone prepared to make a quick buck.

Revenue have always stated they will adopt a light touch to make the admin as simple as possible. It is the employer's and employee's responsibility not to abuse the scheme. The Revenue can police it using their audit powers should they choose to

In terms of the voucher scheme, as I have already pointed out you are required to present photo ID when "cashing them in", and they are linked to a specific employer order. Hence if used properly, there should be no problem. Unfortunately, however, that does not stop some crook like the one trying to sell one on adverts.ie trying to defraud someone else out of €700 by selling them a worthless piece of paper (with a notional value of €1,000 written on it)

Steve

Hi, I removed the ad - was told of this thread afterwards.

I can't see any definitive proof that this practice is allowed so therefore - until proven otherwise - these vouchers won't be allowed on adverts.ie

at1withmyself

Beasty wrote: »

Revenue have always stated they will adopt a light touch to make the admin as simple as possible. It is the employer's and employee's responsibility not to abuse the scheme. The Revenue can police it using their audit powers should they choose to

In terms of the voucher scheme, as I have already pointed out you are required to present photo ID when "cashing them in", and they are linked to a specific employer order. Hence if used properly, there should be no problem. Unfortunately, however, that does not stop some crook like the one trying to sell one on adverts.ie trying to defraud someone else out of €700 by selling them a worthless piece of paper (with a notional value of €1,000 written on it)

I wasn't aware of the ID requirement and I wasn't asked for ID when I presented my voucher and from the looks of the ad I think the guy was genuinely just trying to get money back for the voucher which he was no longer going to use.

I know a few people who still have their vouchers and don't want to buy a bike anymore, so selling seems like the only option. Or does anyone know any other way?

CramCycle

at1withmyself wrote: »

I know a few people who still have their vouchers and don't want to buy a bike anymore, so selling seems like the only option. Or does anyone know any other way?

If they don't use the vouchers, the money shouldn't be taken out of their wages or if it is taken out of their wages immediately, they should contact who ever deals with it (admin/accountants/boss etc.) and tell them to cancel it and get a refund to their wages in the next wage packet, the tax will work out the same AFAIK.

Beasty

at1withmyself wrote: »

I know a few people who still have their vouchers and don't want to buy a bike anymore, so selling seems like the only option.

I can assure you that selling these amounts to tax fraud. The fundamentals of the scheme are that the employer buys the bike and sells it to the employee, and the employee must intend using the bike mainly for commuting

As CramCycle points out, employees who do not want to use the voucher can always speak to their employer, but need also to consider the salary sacrifice "contract" they have entered, which is a legally enforceable change to the employee's terms of employment.