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

grey_man

seamus wrote: »

Yuck.

Anyone who supplies goods valued more than €10,000 to a public body in a given 12-month period is required to obtain a tax clearance certificate to continue working with that body.

In your case, CRC have probably supplied 10 bikes before yours, meaning that they now need a TCC.

http://www.finance.gov.ie/documents/circulars/circ432006.pdf

Page 4:

7.2.1 Non-resident contractors who are registered for Irish tax and who do not have
a permanent established place of business in the State should be advised to apply for
tax clearance to Dublin City Centre Revenue District, 9/15 Upper O’Connell Street,
Dublin 1.

CRC are based in the UK, but registered for Irish VAT, so the above applies to them. You can let CRC know that they only need to do this once and it will clear them for all bikes supplied to all public bodies in ROI.

Hi Seamus,

Thanks for the reply. I now see why my employer insists on getting a Tax Clearance Cert Ref No from my supplier.

I sent an email to CRC asking whether or not they had one and also explained why one is actually required. They seem to think an Irish Vat number will suffice ( maybe it would for private sector? ).

I just can't help but think that I can't be the first of all the public sector workers out there to try CRC. Especially when it was so highly recommended by so many of my co-workers ( there's a decent cycling culture in my job ).

I really hope that CRC made a mistake and they actually do have a TCC number so I can go ahead with my C2W application.

Thanks again,
John.

seamus

It might be the case that their AR department who do the invoicing just need to talk to their internal accounts guys. I was thinking last night, like you are, that CRC must have supplied well over that amount to public sector bodies at this stage, so they probably have the cert already.

Morf3h

Hi all,

I got an invoice from my bike shop to buy a bike for €1000 back in May.

Company paid it etc and I got the bike.... grand.

Just checked my payslips for the last four months and think they've over-deducted me for the bike.

How much should my wage be deducted by over a four month period?

Thanks,

M.

seamus

Uh, €250/month.

It comes out of your gross, so you should see a simple deduction in the payslip of €250. Don't bother trying to work out what it should be after tax, because it'll just melt your head.

reilig

Morf3h wrote: »

Hi all,

I got an invoice from my bike shop to buy a bike for €1000 back in May.

Company paid it etc and I got the bike.... grand.

Just checked my payslips for the last four months and think they've over-deducted me for the bike.

How much should my wage be deducted by over a four month period?

Thanks,

M.

If it helps, the cost of my bike was deducted from one payslip. Eur 1000. In real terms, the bike cost me EUR 462 (after tax refund etc). (ie. I received 462 less in that pay packet than normal after the 1000 was deducted for my bike).

I am on the higher rate of tax.

BUACHAILL

Quick question and sorry if its already been covered,

My sister is looking to do this scheme. She has recently been on maternity leave and as her salary has been less she has dropped back onto the lower rate of tax, however the higher rate will kick back in come Jan. There has been talk of the scheme being chopped come next budget so is eager to move.

Any idea how this will work, will she be done for lower rate or higher ? is it done on what your on when you take up the scheme or is it done an the annual basis ??

Beasty

BUACHAILL wrote: »

Any idea how this will work, will she be done for lower rate or higher ? is it done on what your on when you take up the scheme or is it done an the annual basis ??

It depends how the salary sacrifice is structured - if (as usual) over 12 months the deductions will come from pre-tax salary over each of those 12 months. If she takes it up in November for example, and the first deduction is in December, 1/12 would be in this tax year at the lower marginal rate and 11/12 would be in 2012 when her marginal rate would be higher

BUACHAILL

Beasty wrote: »

BUACHAILL wrote: »

Any idea how this will work, will she be done for lower rate or higher ? is it done on what your on when you take up the scheme or is it done an the annual basis ??

It depends how the salary sacrifice is structured - if (as usual) over 12 months the deductions will come from pre-tax salary over each of those 12 months. If she takes it up in November for example, and the first deduction is in December, 1/12 would be in this tax year at the lower marginal rate and 11/12 would be in 2012 when her marginal rate would be higher

Thanks for that Beasty was kinda Hoping it would be something like that !! I will let her know.

Any thoughts on what will happen the scheme in the dec budget ??

Beasty

BUACHAILL wrote: »

Any thoughts on what will happen the scheme in the dec budget ??

It was on the "hitlist" in the independent Taxation review published a year or two ago, but I can't see much sense in removing it for a number of reasons, including:

1. It costs very little to the taxpayer;
2. After the initial take-up there is bound to be a tailing-off, meaning the ongoing cost is reducing;
3. It encourages a healthy lifestyle; and
4. It's popular with a significant number of voters

Having said that given the current state of the public finances its removal could not be ruled out

Morf3h

seamus wrote: »

Uh, €250/month.

It comes out of your gross, so you should see a simple deduction in the payslip of €250. Don't bother trying to work out what it should be after tax, because it'll just melt your head.

So although it looks like I've paid 1000 I actually haven't because I pay less tax or something?

Beasty

Morf3h wrote: »

So although it looks like I've paid 1000 I actually haven't because I pay less tax or something?

In effect, yes

Toblerone1978

FYI, there is a well thought out and put together report recently done by the newly formed IBBA (Irish Bicycle Business Association) at www.ibba.ie.

Well worth a read for anyone with an interest in this kinda thing.

Apologies if this was already mentioned on the forum.

monument

Can an employer limit the amount an employee can spend to €500, rather than the standard €1,000?

Beasty

monument wrote: »

Can an employer limit the amount an employee can spend to €500, rather than the standard €1,000?

Yes - it's the employers scheme and they can put any limit they wish in

Interestingly though there is absolutely no benefit to them of doing this unless they are actually giving the bike to the employee (where clearly they then suffer the actual cost of the bike, which is a tax-exempt benefit to the employee)

If an employee gets a €1,000 bike the employer actually saves twice as much PRSI compared to getting a €500 bike under (typically used) salary sacrifice arrangements

jprboy

I didn't hear any proposals in the Budget to end the Bike to Work Scheme.

Is it likely that this will still be available in 2012?

Beasty

jprboy wrote: »

Is it likely that this will still be available in 2012?

Unless I've missed something, yes - I can't find any reference in any of the Budget documents published today

greenmat

Beasty wrote: »

Yes - it's the employers scheme and they can put any limit they wish in

Interestingly though there is absolutely no benefit to them of doing this unless they are actually giving the bike to the employee (where clearly they then suffer the actual cost of the bike, which is a tax-exempt benefit to the employee)

If an employee gets a €1,000 bike the employer actually saves twice as much PRSI compared to getting a €500 bike under (typically used) salary sacrifice arrangements

Sorry Beasty haven't read entire thread, but you said employer saves money on this scheme too, i.e. PRSI. Didn't know that. I thought they were doing me a big favour yet they save money too. In my job they make it so hard to apply and scheme only runs for a few weeks each year.

greened

Beasty wrote: »

Unless I've missed something, yes - I can't find any reference in any of the Budget documents published today

have been checking to and have not seen it mentioned anywhere.Took a gamle in Novemeber not to apply for the BTWS as I would have had to pay back in two pay cheques.

StaggerLee

I did thew bike to work last year, nothing showed up on any of my Tax documents in terms of credits claimed tec. Should they have?

seamus

StaggerLee wrote: »

I did thew bike to work last year, nothing showed up on any of my Tax documents in terms of credits claimed tec. Should they have?

Nope. All you should see is a reduction in your gross pay.

Slydice

is there a seperate thread anywhere for this scheme which discusses places to buy and combinations of bikes/gear that might be good for a commuter?

wobbles

Whats the average time for payment to go through after its been accepted, or does it vary company to company

buzz55

Hi,
I want to buy a bicycle under the bike to work scheme.

The bike I want is 1/2 the price online that I will pay in the local shop. Online is in the UK & the bike is on offer (it's 800 euro here, half that delivered from UK).

My question is, while I know that under the scheme the bike can be bought from anywhere (once my employer agrees), if the bike costs 400 euro delivered - can I then use some of the remaining 600 euro (up to the tax benefit amount of 1,000) to purchase some gear/equipment locally/from a different site?

I wouldn't mind giving some of my business locally but just can't justify twice the price, even with the tax benefits.

Does anyone know, or should I just get on to the revenue dept that deals with the scheme?

Thanks.

Lumen

Yes

Beasty

The money needs to be spent at pretty much the same time as there should only be a single salary sacrifice arrangement (which becomes a change to your contract of employment). I would imagine that if it was all done within the same pay period, with the salary sacrifice kicking in at the end of that or the following pay period it should be fine

buzz55

Thanks - that's made my day

Ah_go_on

Hi, has anyone bought a canyon online using the bike to work scheme (partially)? Looking at the ultimate slx which is the guts of €3k and want to use €1k from the btw scheme towards it. Any advice?

Idleater

Ah_go_on wrote: »

Hi, has anyone bought a canyon online using the bike to work scheme (partially)? Looking at the ultimate slx which is the guts of €3k and want to use €1k from the btw scheme towards it. Any advice?

As per the bike to work mega thread, there should be no problem but your employer will have to buy the bike ie all 3k. 1k will be taken from your gross, and 2k from the net, divided into whatever payment plan you agree to.
Personally speaking I saved my btw for a "cheaper " bike rather than my race bike because 500 saving on 1300 is more significant than 500 on 3000.

kenmc

Idleater wrote: »

Personally speaking I saved my btw for a "cheaper " bike rather than my race bike because 500 saving on 1300 is more significant than 500 on 3000.

how is it any different? surely you end up paying the same price for 2 bikes no matter which is the btw one?

Lumen

Depends on how handy your finance/accounting/HR people are, I guess.

It's a bit of a pain in the arse to administer these purchases, what with the combination of going over the 1k limit, the purchase being outside Ireland (VAT etc), dealing with Canyon and (possibly) the salary sacrifice arrangements.