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

CramCycle

If its split over 12 months, whatever months are this year will save you money on your highest rate this year and whatever months remain will save on your tax bill next year.

swanvill

Hi,
Does anyone know if the cycle work scheme still available?

Thanks.

CramCycle

swanvill wrote: »

Hi,
Does anyone know if the cycle work scheme still available?

Thanks.

It was not touched in the budget so if your company provides for it then you can still avail of it.

fergalom

Has anyone bought a Canyon bike recently through their employer on the bike 2 work scheme?

As the value is > €1,000 and retailer is outside the state, a zero VAT invoice is required from the retailer (company supplies our VAT number to retailer to allow this) and the Irish VAT of 23% is applied here by my employer.

Using the pre-payment option on Canyon website, you can get an invoice but only with 21% VAT applied.

Have spoken to the UK customer service and they are telling me they will not issue a zero VAT invoice even if we supply our VAT number.

This rules out buying a Canyon bike under the BTW scheme in Ireland.

Has anyone successfully bought a Canyon bike under the BTW scheme - if so how did you do it in line with the rules of the BTW scheme?

maesrichard1

fergalom wrote: »

Has anyone bought a Canyon bike recently through their employer on the bike 2 work scheme?

As the value is > €1,000 and retailer is outside the state, a zero VAT invoice is required from the retailer (company supplies our VAT number to retailer to allow this) and the Irish VAT of 23% is applied here by my employer.

Using the pre-payment option on Canyon website, you can get an invoice but only with 21% VAT applied.

Have spoken to the UK customer service and they are telling me they will not issue a zero VAT invoice even if we supply our VAT number.

This rules out buying a Canyon bike under the BTW scheme in Ireland.

Has anyone successfully bought a Canyon bike under the BTW scheme - if so how did you do it in line with the rules of the BTW scheme?

I rang canyon in the UK and explained the situation and they got it sorted for me.

fergalom

Thanks but I rang them this morning and they told me they will not do this.
Can I ask how they sorted it for you?

Smokeyskelton

I can't give you much guidance on how it works, but I can assure you I bought a Canyon bike through the BTW scheme about two months ago.

There was no problem. I just put an order through the website with the company as the purchaser. The invoice was for the full amount and my employer paid €1,000 by bank transfer and I paid the balance also via bank transfer.

I thought there might be a problem as Canyon would not split the invoice, but there was no issue.

I am now paying it off the €1,000 paid by my employer via my wages.

I can't help you on how it works, as I didn't need to know. All I know is that it did work. I think that there is something on the Canyon FAQ stating that they accept Irish BTW but not the UK scheme (if I remember correctly).

Beasty

I know I'm repeating myself for the umpteenth time her, but no retailer can "accept" the BTW scheme. They are simply selling a bike to your employer and so far as they are concerned that is (or certainly should be) the end of the matter

maesrichard1

Beasty wrote: »

I know I'm repeating myself for the umpteenth time her, but no retailer can "accept" the BTW scheme. They are simply selling a bike to your employer and so far as they are concerned that is (or certainly should be) the end of the matter

I only bought a new canyon last month with the BTW scheme. I got an invoice for the full amount an just did the BTW on the first 1000€ and my employer and ~I sorted out the balance. it can be confusing i admit. Ring canyon uk and explain to them your situation. I dont think you need to split the invoice but i do know that some employers will only buy up to 1000€.

maesrichard1

fergalom wrote: »

Has anyone bought a Canyon bike recently through their employer on the bike 2 work scheme?

As the value is > €1,000 and retailer is outside the state, a zero VAT invoice is required from the retailer (company supplies our VAT number to retailer to allow this) and the Irish VAT of 23% is applied here by my employer.

Using the pre-payment option on Canyon website, you can get an invoice but only with 21% VAT applied.

Have spoken to the UK customer service and they are telling me they will not issue a zero VAT invoice even if we supply our VAT number.

This rules out buying a Canyon bike under the BTW scheme in Ireland.

Has anyone successfully bought a Canyon bike under the BTW scheme - if so how did you do it in line with the rules of the BTW scheme?

Do you mind me asking, are you working in there public sector?

fergalom

ok, spoken to Canyon Germany as Canyon UK were less than helpful
For anyone ordering a bike from Canyon, here's how its done to get a Zero VAT invoice issued.

if you place your order online (billed to your company) and choose prepay/invoice, you will complete a form for company details and you can submit the company VAT number in the free text field and they can then issue the invoice without VAT.

Thanks for the help / advice folks

dave_o_brien

Quick question:

I've recently completed payments for my bike. Are my employers obliged to issue me with a cert clarifying that the agrees salary sacrifice arrangement has been completed?

Cheers,
Dave

fergalom

maesrichard1 wrote: »

Do you mind me asking, are you working in there public sector?

Not at all and answer is no.

Beasty

dave_o_brien wrote: »

Quick question:

I've recently completed payments for my bike. Are my employers obliged to issue me with a cert clarifying that the agrees salary sacrifice arrangement has been completed?

Cheers,
Dave

Nope - presumably full terms were clearly established/agreed at the outset and your gross salary reverts automatically

dave_o_brien

Beasty wrote: »

Nope - presumably full terms were clearly established/agreed at the outset and your gross salary reverts automatically

That's the case alright: salary sacrifice agreement signed and filed in advance. Thanks for clearing that up.

Unknown Soldier

fergalom wrote: »

Has anyone bought a Canyon bike recently through their employer on the bike 2 work scheme?

As the value is > €1,000 and retailer is outside the state, a zero VAT invoice is required from the retailer (company supplies our VAT number to retailer to allow this) and the Irish VAT of 23% is applied here by my employer.

Using the pre-payment option on Canyon website, you can get an invoice but only with 21% VAT applied.

Have spoken to the UK customer service and they are telling me they will not issue a zero VAT invoice even if we supply our VAT number.

This rules out buying a Canyon bike under the BTW scheme in Ireland.

Has anyone successfully bought a Canyon bike under the BTW scheme - if so how did you do it in line with the rules of the BTW scheme?

Got one last week. The invoice had 23% on it.

I take the rest of the pain in one go and pay the excess etc from my next monthly wage.

Then live on beans on toast for a few months.

Beasty

Unknown Soldier wrote: »

Got one last week. The invoice had 23% on it.

That implies they are registered for VAT in Ireland (as are a number of online retailers). If that is the case then they are correctly applying Irish VAT on sales to Irish employers

@fergalom - are you sure thatr 21% was applied in your case?

Kaisr Sose

If a seller passes a certain threshold for intra country sales, they are obliged to register for VAT in that country. Due to the volume of sales and the value/cost of bikes , it would be very unlikely that Canyon are not obliged to register and apply VAT at 23% on sales to Ireland. (Bike24 have to do so)

That said, VAT is a very complex tax and it gets even more complicated for sales/ purchases intra country. Unless people are very knowledgable of VAT, just to be safe, its probably best not to advise on intra country VAT applications. Revenue or the Civil Service have a good guide for purchases from overseas suppliers under this scheme.

If purchasers, employers and sellers conform to these guidelines, a purchase from any retailer outside Ireland is possible and compliant under the BTW scheme. However, an employer can refuse an application from a retailer outside the state.

CramCycle

Kaisr Sose wrote: »

However, an employer can refuse an application from a retailer outside the state.

Technically an employer can refuse any retailer without explanation as the scheme is voluntary for them. They might choose Irish only retailers, they might decide that the LBS beside them is the only one allowed. The only thing they must do is make the same options available for all employees.

Beasty

TBH it's not that difficult to get over the Irish VAT threshold for importers - think it's still €35k pa. About 4 Beasty bikes and you're there ...

Kaisr Sose

CramCycle wrote: »

Technically an employer can refuse any retailer without explanation as the scheme is voluntary for them. They might choose Irish only retailers, they might decide that the LBS beside them is the only one allowed. The only thing they must do is make the same options available for all employees.

Correct. Its totally up to the employer. Information given in relation to bike import under the scheme. These are additionally complex for employers.

niamh.foley

I was looking at a nice bike on PlanetX Ireland but i hear they dont take

Voucher based schemes only goverment or work Cheque could some one verify this

CramCycle

niamh.foley wrote: »

I was looking at a nice bike on PlanetX Ireland but i hear they dont take

Voucher based schemes only goverment or work Cheque could some one verify this

MOVED TO MEGATHREAD

Are you talking about Planet X Ireland or UK?

niamh.foley

CramCycle wrote: »

MOVED TO MEGATHREAD

Are you talking about Planet X Ireland or UK?

Ireland

seen as the Scheme is from the Irish Base unless the UK takes Irish ones ?

CramCycle

niamh.foley wrote: »

Ireland

seen as the Scheme is from the Irish Base unless the UK takes Irish ones ?

The scheme has nothing to do with the shop, it has to do with your employer. If your employer will pay by card or cheque, it means you can use any shop that will accept card or cheque (my co worker got a bike from Wiggle in the UK on the company card, I got mine through an online retailer as my LBS could not get it into stock).

If however your company has decided to hire an external company to run the scheme for them through a voucher scheme, then you are restricted to what ever shops will accept said vouchers. The company that runs the voucher scheme should have a list of shops that accept it. The unfortunate thing with these schemes is that the middle man company take a slice so you won't get great value in alot of cases.

niamh.foley

CramCycle wrote: »

The scheme has nothing to do with the shop, it has to do with your employer. If your employer will pay by card or cheque, it means you can use any shop that will accept card or cheque (my co worker got a bike from Wiggle in the UK on the company card, I got mine through an online retailer as my LBS could not get it into stock).

If however your company has decided to hire an external company to run the scheme for them through a voucher scheme, then you are restricted to what ever shops will accept said vouchers. The company that runs the voucher scheme should have a list of shops that accept it. The unfortunate thing with these schemes is that the middle man company take a slice so you won't get great value in alot of cases.

Ok went onto cyclescheme.ie/partners where it shows Planet X are offering the Cycle the work but yet they are not taken the vouchers sure dont cyclescheme.ie only offer the vouchers ?

CramCycle

niamh.foley wrote: »

Ok went onto cyclescheme.ie/partners where it shows Planet X are offering the Cycle the work but yet they are not taken the vouchers sure dont cyclescheme.ie only offer the vouchers ?

cyclescheme are a private company, so instead of your company doing the right thing and buying the bike directly from the shop, they are paying a middle man to do it for you and taking a slice of the top. I am not even sure if it is covered by the technicalities according to revenue but no one has given out to them yet.

Are your employers using cyclescheme or did you just happen across their site?

niamh.foley

CramCycle wrote: »

cyclescheme are a private company, so instead of your company doing the right thing and buying the bike directly from the shop, they are paying a middle man to do it for you and taking a slice of the top. I am not even sure if it is covered by the technicalities according to revenue but no one has given out to them yet.

Are your employers using cyclescheme or did you just happen across their site?

I used them over 3 years ago before, so i would image the new company i work for would be using a company like them as they did say something to us about getting onto the likes for that company

CramCycle

niamh.foley wrote: »

I used them over 3 years ago before, so i would image the new company i work for would be using a company like them as they did say something to us about getting onto the likes for that company

I would talk to your new company first and ask them how they operate the scheme, it will save you alot of time as they may have a list of approved shops (who are they), they may use a middle man (who is it) or they may administer the scheme themselves (it is quite easy to do).

niamh.foley

just after speaking to the Finance person, we use a company called Euro treck Rally any one hear of them ?

so its Vouchers that we get and Planet X dont do Vouchers joke!!