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

silverharp

has the scheme changed the second hand market much? for commuting I wouldn't mind buying one second hand but there doesn't seem to be a point if you are getting "50% off" new ones especially when second hand even if bought from a shop doesn't qualify.

jacksie66

This post has been deleted.

CramCycle

There really is not much of a second hand market for 1000euro bikes anymore, as people who don't know the market but have given up on the B2W won't sell it for as little as it is not worth. Basically (in regards 1000euro bikes), once you walk out the door, your bike, with variation is worth 50% of its RRP. The market is now saturated with bikes slightly above this but sellers won't come down as they feel they are being cheated (they are not) and buyers quite rightly won't go up because they can potentially go via the B2W scheme within 5 years.

silverharp

CramCycle wrote: »

There really is not much of a second hand market for 1000euro bikes anymore, as people who don't know the market but have given up on the B2W won't sell it for as little as it is not worth. Basically (in regards 1000euro bikes), once you walk out the door, your bike, with variation is worth 50% of its RRP. The market is now saturated with bikes slightly above this but sellers won't come down as they feel they are being cheated (they are not) and buyers quite rightly won't go up because they can potentially go via the B2W scheme within 5 years.

I was thinking there would be a disconnect. If it was just for commuting I’d think I’d prefer two ~500 euro bikes over 10 years than feeling obliged to get 7 or 8 years out of a 1k bike. After 5 years I’d leave it unlocked in town and wait for it to be nicked ;-)

idnkph

I got a bike on the scheme but left the job after 5 months and paid the balance back to the employer at the time. Does that make me eligible for being granted the scheme again?

idnkph

I got a bike on the scheme but left the job after 5 months and paid the balance back to the employer at the time. Does that make me eligible for being granted the scheme again?

iwillhtfu

idnkph wrote: »

I got a bike on the scheme but left the job after 5 months and paid the balance back to the employer at the time. Does that make me eligible for being granted the scheme again?

It depends who you ask some see a change of employer as the beginning of the bike to work again. I think technically you're not but it is worded badly and leaves it open to interpretation. In short yes you could apply for it again.

magicbastarder

idnkph wrote: »

I got a bike on the scheme but left the job after 5 months and paid the balance back to the employer at the time. Does that make me eligible for being granted the scheme again?

under the legislation you can still only enter the scheme once every 5 Tax years.

https://www.cyclescheme.ie/help/faqs/employee-faqs#/help/faqs/employee-faqs/what-happens-if-i-leave-my-job,-retire-or-ia-m-

AndrewJRenko

idnkph wrote: »

I got a bike on the scheme but left the job after 5 months and paid the balance back to the employer at the time. Does that make me eligible for being granted the scheme again?

Did you repay the gross balance (total cost of the bike) or the net balance (amount outstanding after tax)?

site_owner

silverharp wrote: »

I was thinking there would be a disconnect. If it was just for commuting I’d think I’d prefer two ~500 euro bikes over 10 years than feeling obliged to get 7 or 8 years out of a 1k bike. After 5 years I’d leave it unlocked in town and wait for it to be nicked ;-)

your also competing with interest free installments.
i can get a 1000eu bike from a shop for something like 40eu a month out of my wages. or i can go on donedeal and be askedd to pay 7-800eu for the same bike becauses its "nearly new".

the 40eu bike will have a free service included and a shop guarantee while the 800eu bike is possibly robbed.

mirrormatrix

silverharp wrote: »

I was thinking there would be a disconnect. If it was just for commuting I’d think I’d prefer two ~500 euro bikes over 10 years than feeling obliged to get 7 or 8 years out of a 1k bike. After 5 years I’d leave it unlocked in town and wait for it to be nicked ;-)

If (and this is a big if) you are in the higher tax bracket, a 1000 euro new bike costs you ~500 Euro every 2 years. Therefore, an equivalent second hand bike would have to be considerably cheaper than 500 euro in order to account for wear and tear, risk of issues that aren't immediately obvious on inspection etc.

No need to get 7-8 years out of a 1k bike. Bike to work is back available after 5 years.

patravers

If you had your bike stolen are you still ineligible for five years to get another bike?

Idleater

patravers wrote: »

If you had your bike stolen are you still ineligible for five years to get another bike?

From the purchase time yes, for that employment.

spoonerhead

I’m thinking of getting a bike over the next few days, under the scheme. I’m completely new to this so what should I look out for price wise with the bike? Will probably needed the safety gear and some comfortable wear also.

idnkph

AndrewJRenko wrote:

Did you repay the gross balance (total cost of the bike) or the net balance (amount outstanding after tax)?

Yes repaid total gross balance.

Paul_Mc1988

idnkph wrote:

Yes repaid total gross balance.

My job takes the whole amount in the next pay slip which helps to avoid this happening. Wouldnt do it any other way.

AndrewJRenko

idnkph wrote: »

Yes repaid total gross balance.

Then you haven't availed of the scheme, so you can go for it any time you like.

mirrormatrix

patravers wrote: »

If you had your bike stolen are you still ineligible for five years to get another bike?

Unfortunately yes.

cython

AndrewJRenko wrote: »

Then you haven't availed of the scheme, so you can go for it any time you like.

With all due respect, you don't have enough info to make that assertion, and with what's available I would doubt it's that way. If the poster paid back from their pocket the outstanding gross balance after 5 months (and only what was outstanding then), then they availed of the relief for the preceding 5 months, so they have availed of some relief under the scheme.

However, if they changed employment since then there's the loophole in interpretation that's already outlined which means anything that happened in the prior employment is irrelevant in this context.

EDIT: I see in your question you drew a false equivalency between gross balance and total gross cost - in that specific but nonstandard interpretation, you're correct, but it's hard to be sure the poster shared that interpretation.

magicbastarder

Idleater wrote: »

From the purchase time yes, for that employment.

i've not read the legislation, but any guidelines i've seen about it state that you can avail of it once every five years - there's not much out there to suggest that changing employers resets the clock.

Idleater

magicbastarder wrote: »

i've not read the legislation, but any guidelines i've seen about it state that you can avail of it once every five years - there's not much out there to suggest that changing employers resets the clock.

Not legislation but there's a link at the bottom of:
https://www.revenue.ie/en/employing-people/what-constitutes-pay/items-not-treated-as-pay/provision-of-bicycles-for-directors-and-employees.aspx

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-42/42-04-35.pdf
"The employee" and "employer"

Employers' Guide to PAYE wrote:

5-year period
The exemption from income tax, USC and PRSI in respect of the benefit-in-kind can only be
availed of once in any five-year period by an employee or director.
Where an employer incurs an expense of less than €1,000 in year one in the provision of a
bicycle and/or associated safety equipment, and incurs further costs within a 5-year period,
the employee will not be able to claim the exemption in respect of the difference between
€1,000 and the amount spent by the employer within the 5-year period

CramCycle

AndrewJRenko wrote: »

Then you haven't availed of the scheme, so you can go for it any time you like.

They have availed of the scheme based on those posts.

magicbastarder wrote: »

i've not read the legislation, but any guidelines i've seen about it state that you can avail of it once every five years - there's not much out there to suggest that changing employers resets the clock.

The legislation itself seems indicative of "per employment", certainly the way I read it. This said many employers will ask if you have availed of the scheme in the past five years, so there is a risk you are misleading an employer, which may have its own ramifications in regards their own HR policies.

plodder

http://www.irishstatutebook.ie/eli/2008/act/25/section/7/enacted/en/index.html

corcaigh07

Can anyone recommend a decent commuter bike under the scheme?

I’m 6” and thinking of getting the Cannondale Quick 5 disc. With the scheme, should be about 700 with 300 to spare for store credit for lights, helmet, servicing etc.

Eamonnator

corcaigh07 wrote: »

Can anyone recommend a decent commuter bike under the scheme?

I’m 6” and thinking of getting the Cannondale Quick 5 disc. With the scheme, should be about 700 with 300 to spare for store credit for lights, helmet, servicing etc.

I don't think you can use the scheme for bike service.

AndrewJRenko

corcaigh07 wrote: »

Can anyone recommend a decent commuter bike under the scheme?

I’m 6” and thinking of getting the Cannondale Quick 5 disc. With the scheme, should be about 700 with 300 to spare for store credit for lights, helmet, servicing etc.

If you're looking for something for commuting, you'll need mudguards, rack (carrier) and usually a good lock. Dynamo lights can be handy too.

Grassey

Eamonnator wrote:

I don't think you can use the scheme for bike service.

Or buying store credit.

magicbastarder

a first (and often second) service is usually included in the purchase price anyway.

corcaigh07

Grassey wrote: »

Or buying store credit.

The guy in the shop seemed to think I could get store credit to make the purchase price up to 1000 and I could get accessories from the left over credit.

Is he right or do I need to specify the exact items on the original quote I’ll be giving to my employer?

site_owner

corcaigh07 wrote: »

The guy in the shop seemed to think I could get store credit to make the purchase price up to 1000 and I could get accessories from the left over credit.

Is he right or do I need to specify the exact items on the original quote I’ll be giving to my employer?

Real items need to be listed but there is no enforcement of what you buy, so shop might put a few hundred worth of generic accessories that you can "exchange" for other stuff later