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

BoardsMember

Thanks for the replies, it makes it clearer!

Re Beasty contribution, that might be worth pursuing alright, then I am only paying BIK on the 1214...sound good to me!!

micar

I availed of the scheme in Jan 2011. Come the end of the year, it will be 4 full years that I availed of it.

I was speaking to someone last night who said that I could avail of it again at any point within the 5th year. In my case, this would be Jan 2015.

Has anyone heard of this?

Has it been in place where someone had availed of it twice one the initial period has passed?

Inquitus

micar wrote: »

I availed of the scheme in Jan 2011. Come the end of the year, it will be 4 full years that I availed of it.

I was speaking to someone last night who said that I could avail of it again at any point within the 5th year. In my case, this would be Jan 2015.

Has anyone heard of this?

Has it been in place where someone had availed of it twice one the initial period has passed?

No it will be 2016 it's the start of the sixth year after the year you availed of it.

mathie

Inquitus wrote: »

No it will be 2016 it's the start of the sixth year after the year you availed of it.

I got my first in October 2009.
When I asked in May this year my HR said I could apply straight away.
I'm not sure about what the exact rules are though.

I just availed of it again last week (yes it took my that long to settle on a bike!)

CramCycle

mathie wrote: »

I got my first in October 2009.
When I asked in May this year my HR said I could apply straight away.
I'm not sure about what the exact rules are though.

I just availed of it again last week (yes it took my that long to settle on a bike!)

2009 was your first tax year using the scheme
2010 the 2nd
2011 the 3rd
2012 the 4th
2013 the 5th

Which means from the 1st of January, barring exception from your work place, you could avail of the scheme again.

Cee-Jay-Cee

mathie wrote: »

I got my first in October 2009.
When I asked in May this year my HR said I could apply straight away.
I'm not sure about what the exact rules are though.

I just availed of it again last week (yes it took my that long to settle on a bike!)

You could have availed of it on January 1st this year.

M.J.M.C

Hi All

I'm right on the cusp of getting a bike for the bike to work scheme.
It's about a 20K commute, I run it once a week so I i'll be able for it.
Currently paying about 120 a month for my bus pass so 50 a month for a bike appeals to me.

I know nothing about bikes though, what should one look out for when buying a bike.
I want it just for the commute only, I wouldn't be doing any cycling events etc.
A road bike seems like the best option as it's lighter but I dont know anything about them.
I would spend the 1,000 or a little over to get the best value for money.

Thanks for the help or suggestions.

CramCycle

M.J.M.C wrote: »

I would spend the 1,000 or a little over to get the best value for money.

Thanks for the help or suggestions.

Spending a 1000 to get the biggest saving is pointless if a 300euro bike would do you. I would recommend a road bike for your reasons, get good tyres. If you have the cash to hand, maybe just buy 2nd hand and get a full service at your LBS.

The most important thing is the bike fit, too big or too small for you, issues can crop up, even if they are only minor.

It's the right time of year for it though as shops clear out old stock if your buying first hand.

M.J.M.C

Thanks for the reply.

I was thinking of spending the full 1,000 as you can only do this every 5 years or something so I'd want a good one to last.
I'll look into sizes so thanks for that.

Any suggestions for bikes in and around the 1,000 - 1,100 price range?
Thanks

CramCycle

M.J.M.C wrote: »

Thanks for the reply.

I was thinking of spending the full 1,000 as you can only do this every 5 years or something so I'd want a good one to last.
I'll look into sizes so thanks for that.

Any suggestions for bikes in and around the 1,000 - 1,100 price range?
Thanks

Sorry, I should have been clearer, alot of bike shops (B+M or online) have overpriced bikes to fit the bike to work scheme (IMO) if you are not going to push any further than the 20km there are plenty of bikes that will be perfectly suitable for alot less. Don't forget to factor in locks and lights as the two most important auxillary purchases. You will need two locks minimum and for your own sake get reasonable lights.

eg. http://www.evanscycles.com/products/dawes/giro-200-2013-road-bike-ec050869
400euro incl postage, will more than do the job
Locks: 1 if not 2 U locks or 1 U lock and one chain, roughly 100-150euro
Lights, depending on where you are going, but you will pick up a commuting in town set for sub 30euro

Your LBS should have suitable bikes in the 600 to 800 range and will be negotiable for the locks and lights, I would recommend your LBS as they will be able to size and service your bike quicker and easier, particularly if you are new to cycling so much.

RainyDay

TychoCaine wrote: »

Wheelworx seem to be particularly stingy when it comes to cycle to work. Traditionally bike shops build a little extra into their sticker prices so they have room to discount if customers ask. Clubs will also have good discounts negotiated with affiliated shops. Wheelworx seem to be taking advantage of naive customers new to bikes & bike shops, who don't realise that the 52% tax savings don't cost the shop anything.

Any bike shop I talked to prior to buying mine was willing to either give a flat discount or throw in free accessories. This wasn't down to good negotiation on my part. It's just how they do business and create happy repeat customers. In the end I bought a bike from FitzCycles in Stillorgan that was already discounted by €500 in a sale with an extra €100 in accessories.

A general question - what kind of discounts are people getting in bike shops for a btw direct purchase, no agent or middleman involved. If I have a bike listed at €800, what should I expect to end up paying? I'll probably put the saving into accessories anyway.

Helpneeded86

I have a few questions and have glanced through the thread. I am willing to spend the full 1K between the bike and gear. i have been using a hybrid with a year and I am at the stage of cycling approx 50kms.

IS buying online the way to go?

Could I ever pull off a better deal with a second hand bike?

cython

Helpneeded86 wrote: »

I have a few questions and have glanced through the thread. I am willing to spend the full 1K between the bike and gear. i have been using a hybrid with a year and I am at the stage of cycling approx 50kms.

IS buying online the way to go?

That's a bit subjective, and very dependent on how confident you are on fitting yourself based on a geometry chart. While value for money is better online in general, if you get a bad fit from it that could be more costly in the long run.

Helpneeded86 wrote: »

Could I ever pull off a better deal with a second hand bike?

Assuming you can get the right fit online (per the above), your employer facilitates online purchases, and that you can get the max rate of tax relief on the BTW scheme (approx 52% or whatever), then IMHO you would be hard pressed to beat that with a second hand purchase for that price range. If you were looking at a more expensive price range then it might be less clear, as the relief from the scheme is basically capped, whereas a second hand discount might be more percentage-based.

Hope that all makes some sense.

Helpneeded86

It helps. I would have a friend who is very involved in the industry, is it possible he could help with the fitting. He already said a 54 is what I need.

micar

micar wrote: »

I availed of the scheme in Jan 2011. Come the end of the year, it will be 4 full years that I availed of it.

I was speaking to someone last night who said that I could avail of it again at any point within the 5th year. In my case, this would be Jan 2015.

Has anyone heard of this?

Has it been in place where someone had availed of it twice one the initial period has passed?

Found a copy of my receipt. Bike was bought on 30/12/2010. As such, I can go again on 01/01/2015. Yippie!!!!!!!

dogsears

micar wrote: »

Found a copy of my receipt. Bike was bought on 30/12/2010. As such, I can go again on 01/01/2015. Yippie!!!!!!!

Nigh on perfect timing! Well done sir

larryone

While it seems to be the case that this tax scheme has caused the price of bikes to inflate significantly, I wonder what would happen if the cap was raised to €2k in next weeks budget. Purely speculative I know, but might it cause the bikes in the €1k range to settle closer to manufacturers recommended retail values?
Also - I read the Pre-Budget 2015 submission from Cyclist.ie. They were advocating either a 3 year period for the scheme or a reprieve once in the 5 year window to allow for a bike that was officially reported to be stolen.
(They also called for a 13.5% VAT rate for biks stuff, but that's beyond the scope of this thread)

micar

larryone wrote: »

Also - I read the Pre-Budget 2015 submission from Cyclist.ie. They were advocating either a 3 year period for the scheme or a reprieve once in the 5 year window to allow for a bike that was officially reported to be stolen.

In my case, someone tried to steal the bike last July and destroyed the frame beyond repair. They were using the frame as a level to break to lock. The did not break.

Luckily, my bike was insured, the claim has just been settled and the cheque is in the post.

TheBlaaMan

I don't think there was any mention of the BtW scheme in the budget, was there?

dogsears

TheBlaaMan wrote: »

I don't think there was any mention of the BtW scheme in the budget, was there?

Nope.

cython

So just thinking about BTW in light of the budget, while there were no direct changes to it, it stands to reason that the saving to be made on BTW purchases under the 2015 taxation will be less than in 2014 in many cases, due to the reduced PAYE rates. However, if you earn > €70k, I believe the savings available will be pretty much the same as now, as the effective tax rate in that region of earnings is basically unchanged. Do I have that correct (pure curiosity here, mind!), or does anyone better informed care to offer a more accurate interpretation?

dogsears

cython wrote: »

So just thinking about BTW in light of the budget, while there were no direct changes to it, it stands to reason that the saving to be made on BTW purchases under the 2015 taxation will be less than in 2014 in many cases, due to the reduced PAYE rates. However, if you earn > €70k, I believe the savings available will be pretty much the same as now, as the effective tax rate in that region of earnings is basically unchanged. Do I have that correct (pure curiosity here, mind!), or does anyone better informed care to offer a more accurate interpretation?

I think that's right. If you earn more than €70 K then before these Budget changes, your overall taxes on your top €1000 would have been Income tax at 41%, PRSI at 4% and USC at 7%, total 52%. After these changes your taxes will be IT at 40%, PRSI at 4% and USC at 8%, total 52%.

So the benefit of the tax relief under the BTW will be 52% in each case.

If you're a higher rate taxpayer earning less than €70k, your tax saving on spending the €1000 max under the scheme will be worth 1% less i.e €10 less.

Looks like the rich guys win again!;)

Helpneeded86

What would someone making 30k a year when all taxables are taken in to account save on a 1k purchase? Some of the calculators give me the full saving of 52% but the chat above does not make it sound like that.

CramCycle

Helpneeded86 wrote: »

What would someone making 30k a year when all taxables are taken in to account save on a 1k purchase? Some of the calculators give me the full saving of 52% but the chat above does not make it sound like that.

This year it would have been approximately 27% if you spent the full amount, next year I think it will be slightly less but cannot be certain at the minute.

encryptix

Im posting this on behalf of a friend, I have read through this thread and cannot find a definite answer.

I am thinking of doing the bike 2 work scheme and I want to make sure I will save 52% and not the lower rate of 31%.

I only started this job a few months ago so I am not yet earning enough to be paying the higher tax rate, but with my annual salary above the higher tax cutoff rate, I will be paying the higher rate eventually.

Does this mean I will save 52% on the bike to work scheme because I will eventually pay the higher tax rate or does the scheme only look at the rate of tax that I am currently paying?

To confuse me even more my company will take all the money I owe in one lump (At the end of this month, where i will be still paying the lower amount of tax) and not spread the repayments over 12 months as most company's doing the scheme appear to do.

Any help would be much appreciated!

Beasty

If you end up paying 52% before the end of this calendar year (ie the tax year) that will be your marginal rate of tax and you should save that amount

If however you don't start paying the higher rate until next year you will only save the lower rate

howardmarks

Beasty wrote: »

If you end up paying 52% before the end of this calendar year (ie the tax year) that will be your marginal rate of tax and you should save that amount

If however you don't start paying the higher rate until next year you will only save the lower rate

My advice would be to wait til the new year. It's only 2 months and it can take that long to find the right bike for some people. In the new year your salary over the 12 mths Will benefit from the full 52% deduction

booooonzo

howardmarks wrote: »

My advice would be to wait til the new year. It's only 2 months and it can take that long to find the right bike for some people. In the new year your salary over the 12 mths Will benefit from the full 52% deduction

So if I only worked 6 months this year and had to sign on (but still employed with no pay) for the rest of the year and my bike (ordered from germany) was due dec 23rd will I loose out on the full cycle to work rebate?

cheers

CramCycle

booooonzo wrote: »

So if I only worked 6 months this year and had to sign on (but still employed with no pay) for the rest of the year and my bike (ordered from germany) was due dec 23rd will I loose out on the full cycle to work rebate?

cheers

When will the deduction be made? In December or January?

booooonzo

CramCycle wrote: »

When will the deduction be made? In December or January?

Im not 100%
I have the bike pre-ordered and will have to pay for it 2 weeks before delivery
It's 4k so i don't know how the payment will work exactly.
Just started a new job so I'm not sure if they stagger payment or want me to pay via lump sum.

I've been waiting months for the bike on order and doubt i can delay it.