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

Beasty

padyjoe wrote: »

I suppose in that case you won't be able to buy your bike directly.

You cannot buy the bike directly. The employer must buy it then sell/give it to the employee, otherwise it is not under the BTW scheme and you get no tax benefit

from_atozinc

Just a query on this.
If i buy a bike for 600 Euro with the bike to work scheme and pay it off over 12 months, how much is taken from my salary each month for the bike ?
im on the higher level of tax

quozl

You get tax and PRSI off. Which comes to 52% IIRC.

So 600/12 is 50 euro a month but you only have to pay for 48% of that - ie 24 euro a month.

from_atozinc

quozl wrote: »

You get tax and PRSI off. Which comes to 52% IIRC.

So 600/12 is 50 euro a month but you only have to pay for 48% of that - ie 24 euro a month.

ok but on my payslip, will I see a deduction of 50 each month ?

quozl

from_atozinc wrote: »

ok but on my payslip, will I see a deduction of 50 each month ?

It'll make a difference of 24 euro to your monthly take home pay.

Whether your salary will be 50 lower and your monthly tax 26 lower, I don't recall. I only cared about the take-home pay difference.

Looking at last month's slip right now - I have a deduction of 83.33 for the BTW scheme. However the take-home figure was only reduced by about 40 euro. I don't have an older payslip to hand to do an exact comparison as it was only this take-home figure that mattered to me.

magicbastarder

from_atozinc wrote: »

ok but on my payslip, will I see a deduction of 50 each month ?

you'll see a drop of €50 from your gross each month.

CramCycle

quozl wrote: »

Whether your salary will be 50 lower and your monthly tax 26 lower, I don't recall. I only cared about the take-home pay difference.

Gross is 50 lower and the tax is 26 lower so your take home is only down 24euro per month ie the bike costs 288euro out of your take home pay over the year.

from_atozinc

CramCycle wrote: »

Gross is 50 lower and the tax is 26 lower so your take home is only down 24euro per month ie the bike costs 288euro out of your take home pay over the year.

im stoopid here and dont know the tax setup

so to me 50 euro a month taken out of my pay is like me paying 600 Euro for the year for the bike

Should it not be that every month that 24 Euro is taken out of my pay.

bren2001

from_atozinc wrote: »

im stoopid here and dont know the tax setup

so to me 50 euro a month taken out of my pay is like me paying 600 Euro for the year for the bike

Should it not be that every month that 24 Euro is taken out of my pay.

50e is taken from your gross but you are given extra tax credits of 26e a month. So it is the equivalent of taking 24 from your take home pay (does it really matter how it is done behind the scenes?).

You will be 24 out of pocket a month.

CramCycle

from_atozinc wrote: »

Should it not be that every month that 24 Euro is taken out of my pay.

Exactly, 50 euro is the gross deduction (before tax), so you are paying tax on a wage 50euro less. 26euro of this would have been tax. So your net pay, that is the amount you get in your hand, will only be down 24euro.

In laymans terms you will have 24 euro less cash in hand per month to mess around with.

5uspect

Lets take some made up numbers. You earn say €2k per month. This is your gross salary.

The first €1.5k of that is taxed at 20%, the remainding €500 is taxed at 40%.
So of the €1.5k you owe €300 in tax (20% of the €1500)
And of the €500 you owe €300.

Your net salary is what is left. You pay €300 + €200 = €500 in tax and your left with:
(€1,500 - €300) + (€500 - €200) = €1500 net incom per month.

So that's the basic tax system, ignoring all the other things like USC etc.

On top of this you are entitled to tax credits. These are basically discounts on the tax you owe. Most workers can claim tax credits on various things, (but less than in the past where you could claim tax credits on bin charges, rent etc)

The BTW scheme gives you a discount on your tax. You take a €50 hit from your gross but get a tax refund on about €25. What you end up getting paid is only €25 less than before you joined the BTW scheme.

---

Now, anyone have any thoughts on a Giant Rapid? The guys in Cyclezone in Blanchardstown recommended it as a good BTW option.
http://www.giant-bicycles.com/en-gb/bikes/model/2013.giant.rapid.3/11834/56810/#overview

I want something nice for cycling the short 5km trip to work but also for a bit of weekend fun.

Wexf

Bit late to the party here but can someone outline the benefit to the employer and how they actually get their money back, plz I work for a SME and will have to justify this scheme if I'm to get a new bike.

Beasty

Check the first page of this thread for details and benefits of the scheme

From an employers perspective they save PRSI and get a happier and healthier workforce

pistol_75

Hi guys,

The Dept of Education stipulates all payments must be completed in November of calendar year scheme is taken out.

Does anyone know if you can begin scheme in December and pay off till next November or do you have to wait until January?

Dermot Illogical

pistol_75 wrote: »

Hi guys,

The Dept of Education stipulates all payments must be completed in November of calendar year scheme is taken out.

Does anyone know if you can begin scheme in December and pay off till next November or do you have to wait until January?

They start again in January.

Lemlin

Lad in work agreed a price of €645 with an LBS for a 2013 Trek hybrid. It took a month for his vouchers to come through though.

The shop are now saying that the 2013 models are sold out and the 2014 model is €750.

My mate only has €800 worth of vouchers abd wanted to get accessories so was wondering what happens if he takes his vouchers to Halfords and gets a hybrid they have reduced to €539?

The Halfords bike is a Boardman and looks just as good as the Trek in terms of spec.

dots104

Hi Guys

Currently thinking about upgrading my current bike through the bike to work. Just seen that planet X seem to be running a deal thats too good to miss. See link

http://planetxireland.com/products-page/road/pro-carbon-ultegra-pre-order/

Is there something im missing or is this deal as good as it sounds. Ive also being looking at the cube from cycle superstore

http://www.cyclesuperstore.ie/shop/pc/viewPrd.asp?idproduct=57505

Budget is about €1500. Is there anything else out there.

TychoCaine

dots104 wrote: »

Hi Guys

Currently thinking about upgrading my current bike through the bike to work. Just seen that planet X seem to be running a deal thats too good to miss. See link

http://planetxireland.com/products-page/road/pro-carbon-ultegra-pre-order/

Is there something im missing or is this deal as good as it sounds. Ive also being looking at the cube from cycle superstore

http://www.cyclesuperstore.ie/shop/pc/viewPrd.asp?idproduct=57505

Budget is about €1500. Is there anything else out there.

The frame and gear hardware are great, but the chainset, brakes and wheelset belong on a bike 1/2 the price. It'll cost you €€€ to bring it up to "full" Ultegra spec. It's a bargain, but not as much as it seems.

billyhead

Does anyone think or have heard if the government will either modify the terms or pull the plug on the bike to work scheme next week?

Idleater

Doubt it.

dogsears

billyhead wrote: »

Does anyone think or have heard if the government will either modify the terms or pull the plug on the bike to work scheme next week?

No clear leak information that I've heard.

Every year there are some who maintain this scheme is for the chop. I think this year its more vulnerable than any other year for a couple of reasons:

- there's a natural 5 year life because anyone who used it in year 1 is eligible to go again from 2014.
- there is a feeling that its served its purpose i.e. most of the people who are going to use it have done so
- it wasn't introduced by this Government
- the motor industry is likely to be lobbying against continuation and has a loud voice
- there has been abuse - many a lawnmower in Irish garages bought on the BTW scheme
- some big employers (esp Public Sector) have been cribbing about the hassle it puts on their payroll/HR sections
- this isn't a Government that overly wedded to environmental issues.

Against that,

- Its popular
- It costs them very little in terms of tax foregone (though they don't know how much!) - and they get the VAT from sales that probably wouldn't have taken place absent the scheme
- Its helped rejuvenate an industry
- Vlad is a reasonably vocal advocate
- Inda is a cyclist (maybe it shouldn't be but that's a factor)
- There are bigger fish to fry

I'd be surprised if it was plugged to be honest. If it is, it prob won't apply with immediate effect, so anyone who hasn't used it yet will most likely still have time to get a bike for Christmas.

Dazzy

I'm looking to buy a bike using the Bike to work scheme. However, the company only process applications every 3 months and I just missed the cut off date. At this stage it will be December before I can avail of the scheme.

Would a bike shop be willing to let me pay full price now and then get a refund when the bike to work voucher is processed in a couple of months? Anyone ever manage to do this?

Vizzy

Dazzy wrote: »

I'm looking to buy a bike using the Bike to work scheme. However, the company only process applications every 3 months and I just missed the cut off date. At this stage it will be December before I can avail of the scheme.

Would a bike shop be willing to let me pay full price now and then get a refund when the bike to work voucher is processed in a couple of months? Anyone ever manage to do this?

Unfortunately, that is what is not allowed under the scheme. You will just have to wait.

imonboard

Is there companies out there that contribute money as well as the tax breaks you receive? Garda, prison service etc.Can you get more than 50% off? Can you buy 2 bikes for a total of 1000 euro?
Thanks

Squidgy Black

imonboard wrote: »

Is there companies out there that contribute money as well as the tax breaks you receive? Garda, prison service etc.Can you get more than 50% off? Can you buy 2 bikes for a total of 1000 euro?
Thanks

No. And no.

You pay for the bike usually through your wages, the employer deducts the payments either on a regular basis ie monthly/weekly or sometimes just a lump sum.

I haven't heard of any companies paying for the bikes for their employees. Particularly not any civil service positions.

Beasty

_Tyrrell_ wrote: »

I haven't heard of any companies paying for the bikes for their employees. Particularly not any civil service positions.

The rules do permit it, but companies cannot do it selectively - if they do it for one employee they would have to be prepared to do it for all employees

bren2001

Dazzy wrote: »

I'm looking to buy a bike using the Bike to work scheme. However, the company only process applications every 3 months and I just missed the cut off date. At this stage it will be December before I can avail of the scheme.

Would a bike shop be willing to let me pay full price now and then get a refund when the bike to work voucher is processed in a couple of months? Anyone ever manage to do this?

Not allowed under the scheme but bike shops will let you do it.

Beasty

bren2001 wrote: »

Not allowed under the scheme but bike shops will let you do it.

The bike shops don't care - the scheme is nothing to do with them - it's the employee that will be committing tax fraud

dogsears

Nothing about BTW scheme in today's Budget speech or the supporting documents released by the Department.

There is an outside possibility that if it was going to be abolished it might not be announced today and would just feature when the Finance Bill is released (the end of this month) but that's highly unlikely.

RainyDay

Dazzy wrote: »

Would a bike shop be willing to let me pay full price now and then get a refund when the bike to work voucher is processed in a couple of months? Anyone ever manage to do this?

The problem arises when the bike shop realises that they just refuse to give you the refund, and you can do feck all about it. You can't sue them for failing to comply with their side of a tax fraud. They get paid twice by you. It will be the most expensive bike you'll ever buy.