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

CramCycle

billyhead wrote: »

Has anyone ever got another bike under the BTW scheme with a new employer?

I have and never encountered any issue with it. I even told the second place and they said it had nothing to do with them, their understanding was 5 years within their employment as there was no way for them to check, although I am not sure it ever occurred to them or that they cared.

richieg

On a slightly different topic if you avail of the BTW scheme and pay back the employer in 1 go rather than salary sacrifice over a number of months and subsequently leave that place of employment a couple of months later do you forfeit any tax benefits or still hold onto them?

Beasty

I've moved today's posts from this thread here

richieg

richieg wrote: »

On a slightly different topic if you avail of the BTW scheme and pay back the employer in 1 go rather than salary sacrifice over a number of months and subsequently leave that place of employment a couple of months later do you forfeit any tax benefits or still hold onto them?

Any advice on this before I get into the BTW scheme?

CramCycle

richieg wrote: »

Any advice on this before I get into the BTW scheme?

Are you paying it one lump or monthly, you'll have to have it fully paid off before you leave, you'll receive the same benefits in that you won't have to pay tax on those earnings if you get me, that doesn't change.

lochdara

richieg wrote: »

richieg wrote: »

On a slightly different topic if you avail of the BTW scheme and pay back the employer in 1 go rather than salary sacrifice over a number of months and subsequently leave that place of employment a couple of months later do you forfeit any tax benefits or still hold onto them?

Any advice on this before I get into the BTW scheme?

I think if u pay off the 1000 at the end of a pay month out of ur wages u will make the saving there and then, I.e u are taxed on ur gross wages - 1000 euro. But if u hand your boss 1000 cash I dont think u make that saving as the money didnt come, directly from ur wages. That's my take on it

richieg

CramCycle wrote: »

Are you paying it one lump or monthly, you'll have to have it fully paid off before you leave, you'll receive the same benefits in that you won't have to pay tax on those earnings if you get me, that doesn't change.

That's what I thought, thanks.

Seaneh

Question lads.

Right, I'm totally out of the BTW loop, no idea what the procedure is so Just going to throw out the general question and hopefully someone will be able to help me.


Say I make 30k a year and I want to buy a bike worth €1000 (max I think?) how much do I save? Also, is it possible for me to give my part of the money upfront or does it have to come out of my wages week by week? Or is that totally at the will of my employer?

I know I find a shop, find a bike, HR/Accountant give me a voucher for full amount etc, but how much will I expect to save and can I then give my employer back my share in one lump sum?

lochdara

the answers are in the start but basically on 30k ur probably on lower tax so you will save 300 euro. on high rate u save 510. Not sure about upfront to your employer. someone else can answer that.

you get an invoice for the bike and accessories, give it to your boss, they pay and you collect said bike.. calculator for seeing ur tax is on bikescheme.ie or various others b2w sites.

CramCycle

Seaneh wrote: »

Say I make 30k a year and I want to buy a bike worth €1000 (max I think?) how much do I save?

Approx 270euro is saved according to the CSS calculator: http://www.cyclesuperstore.ie/shop/pc/bike2work.asp

Also, is it possible for me to give my part of the money upfront or does it have to come out of my wages week by week? Or is that totally at the will of my employer?

It has to come out of your wages, it has to come out of your wages within 12 months. You could have it all deducted at one time ie from your next paycheck, the savings in terms of tax do not change, or 1/52 every week or 1/12 every month, it depends how your accountant in work handles it, he may let you decide, he may have a system already set up etc.

I know I find a shop, find a bike, HR/Accountant give me a voucher for full amount etc, but how much will I expect to save and can I then give my employer back my share in one lump sum?

It doesn't work like that, you pay the entire 1000euro out of your gross wages, your employer doesn't pay any of it, it is taken out of your gross wages, the savings are in terms of the amount of tax you do not have to pay ie you receive 1000euro (in terms of value of the bike) that is not taxed as it would be if it was 1000euro in wages.

Seaneh

CramCycle wrote: »

Approx 270euro is saved according to the CSS calculator: http://www.cyclesuperstore.ie/shop/pc/bike2work.asp


It has to come out of your wages, it has to come out of your wages within 12 months. You could have it all deducted at one time ie from your next paycheck, the savings in terms of tax do not change, or 1/52 every week or 1/12 every month, it depends how your accountant in work handles it, he may let you decide, he may have a system already set up etc.


It doesn't work like that, you pay the entire 1000euro out of your gross wages, your employer doesn't pay any of it, it is taken out of your gross wages, the savings are in terms of the amount of tax you do not have to pay ie you receive 1000euro (in terms of value of the bike) that is not taxed as it would be if it was 1000euro in wages.

Ok, it's starting to make sense now...

Cheers.

lochdara

i was told if your boss uses a third party company then there is a €50 cost so in effect you have €950 to buy your bike. So best is deal direct with local shop and it will be easier to get a discount.

CramCycle

Seaneh wrote: »

Ok, it's starting to make sense now...

Cheers.

Also as mentioned before, a point to make to your employer if your the first in your company is that he will also save a small bit of money in terms of PRSi etc. in your case he will save 108euro.

Seaneh

Cheers, yeah, I'd def be stressing that point

jap gt

hi looking for some info, i have asked my boss about this and he said to find out more info, lets say i get a bike + gear for 800, does my boss pay this money and then take some money from my wages

need a bit of clear info as having trouble getting my head around it

Idleater

jap gt wrote: »

hi looking for some info, i have asked my boss about this and he said to find out more info, lets say i get a bike + gear for 800, does my boss pay this money and then take some money from my wages

need a bit of clear info as having trouble getting my head around it

Yeah, he takes it from your gross wages.

jap gt

Idleater wrote: »

Yeah, he takes it from your gross wages.

and would i be right in saying that i would save about 30% off the full price of the bike through the scheme

lochdara

jap gt wrote: »

Idleater wrote: »

Yeah, he takes it from your gross wages.

and would i be right in saying that i would save about 30% off the full price of the bike through the scheme

Yeah.cause the Money deducted is not taxable so you only pay tax on whats left after ur bike deduction is taken out. 51% if u pay high rate of tax

Kaisr Sose

Does anyone know if you can avail of the Irish Bike to Work shcheme if you buy from the likes of CRC/Wiggle or Evans or a German retailer?
If so, was the process the same?

Beasty

Kaisr Sose wrote: »

Does anyone know if you can avail of the Irish Bike to Work shcheme if you buy from the likes of CRC/Wiggle or Evans or a German retailer?

Yes

Kaisr Sose wrote: »

If so, was the process the same?

Yes

Kaisr Sose

Thanks Beasty.
While you posting my question in another thread, I was reading page 1 of the mega thread. My experience of mega threads is that its often pointless going to tbe start unless this is flagged in the title. I see you have done that now, so it shoud avoid beinga sked the same Q all the time.
Hopefully, my employer will allow me to do this.

Tar.Aldarion

Hey I was looking to order for the bike to work scheme from online sites in the north.
What is the story with vat?

The sites want to charge uk vat as they paid it themselves when they got the bike/accessories in themselves. Then do my company have to pay Irish vat as well?!
What is the process? Do they charge back the vat? What do I pay?


I actually think my company is vat exempt but am not sure, so what is the process there?

Beasty

Tar.Aldarion wrote: »

Hey I was looking to order for the bike to work scheme from online sites in the north.
What is the story with vat?

The sites want to charge uk vat as they paid it themselves when they got the bike/accessories in themselves. Then do my company have to pay Irish vat as well?!
What is the process? Do they charge back the vat? What do I pay?


I actually think my company is vat exempt but am not sure, so what is the process there?

Merged into the Megathread

Tar, check post #4 on the first page

Tar.Aldarion

Whoops, apologies!

Lusk Doyle

Is this still in existence in the aftermath of an buidead?

I'd like a new bike next year!

Seaneh

Haven't heard anything.

seamus

Yep. Still exists. Fingers crossed, it just has to survive one more budget and I can go again....

Seaneh

I'm going to use mine in the newyear

Debating whether to only use the allowance or to top it up with a few hundred yoyos and get something extra schamncy.

micar

Seaneh wrote: »

I'm going to use mine in the newyear

Debating whether to only use the allowance or to top it up with a few hundred yoyos and get something extra schamncy.

Why not!!!!!make it your x-mas pressie to yourself!!!!!!!:D:D:D

Seaneh

micar wrote: »

Why not!!!!!make it your x-mas pressie to yourself!!!!!!!:D:D:D

Ribble R872 with SRAM Rival for €1536.22 + delivery looks mighty tempting...

micar

Seaneh wrote: »

Ribble R872 with SRAM Rival for €1536.22 + delivery looks mighty tempting...

looks deadly!!!!!
Never heard of these before!!!!!

Seaneh

Yeah, beautiful bike.

MAssive debate online about whether or not the frame is the same as the De Rosa R838, which is about a grand more expensive for the same spec.

Spot the difference

Brian?

Seaneh wrote: »

Ribble R872 with SRAM Rival for €1536.22 + delivery looks mighty tempting...

link?

Seaneh

Brian? wrote: »

link?

Ill post it later im on my phone atm. In the ribble special editions carbon frames. Can get it cheaper with Apex,105, tiagra or veloce groupsets.

Seaneh

http://www.ribblecycles.co.uk/sed/road-track-bike/ribble-r872-sram-equipped?part=SE12RIBSTEALTHSRAM&sub=conf_SERC

Brian?

Seaneh wrote: »

http://www.ribblecycles.co.uk/sed/road-track-bike/ribble-r872-sram-equipped?part=SE12RIBSTEALTHSRAM⊂=conf_SERC

Cheers horse. Are they on the bike to work scheme?

BenEadir

Lads, was there any change to the bike to work scheme in the budget yesterday? Is there any threat to it or reduction to it? I didn't hear anything but I know the budget usually only focuses on the big issues and changes to the bike to work scheme may have come in under the radar!!

Ben

Lusk Doyle

BenThere wrote: »

Lads, was there any change to the bike to work scheme in the budget yesterday? Is there any threat to it or reduction to it? I didn't hear anything but I know the budget usually only focuses on the big issues and changes to the bike to work scheme may have come in under the radar!!

Ben

http://touch.boards.ie/thread/2056382170?page=28

Seaneh

Brian? wrote: »

Cheers horse. Are they on the bike to work scheme?

AFAIK, that depends on your employer.

digzy

At the risk of asking a silly question.............

i'm a self employed sole trader. I was gonna buy a bike under this scheme. I pay tax at the higher rate, my employee at the lower rate. I also have a small company from which I dont take a wage.

Can I buy it for my employee and get the relief at the higher rate? Would she only get relief at the lower rate? Just looking for advice on how to structure this so I get the relief at the higher rate.

Beasty

digzy wrote: »

At the risk of asking a silly question.............

i'm a self employed sole trader. I was gonna buy a bike under this scheme. I pay tax at the higher rate, my employee at the lower rate. I also have a small company from which I dont take a wage.

Can I buy it for my employee and get the relief at the higher rate? Would she only get relief at the lower rate? Just looking for advice on how to structure this so I get the relief at the higher rate.

Your employee can use the scheme and get basic rate relief. You are self employed and therefore ineligible

digzy

My wife's a teacher, pays tax at higher rate. how would she go about it?

Lusk Doyle

digzy wrote: »

My wife's a teacher, pays tax at higher rate. was thinking that'd make more sense. how would 'she' go about it?

Is your wife not female then?

Seaneh

Lusk Doyle wrote: »

Is your wife not female then?

I think it's because the bike isn't actually for his wifey...

digzy

q

Beasty

digzy wrote: »

Hope that clarifies things.

Yep - what you are suggesting is illegal - your wife must intend using it mainly to commute. If it's mainly for your use she cannot use the scheme to buy it

Asking for advice on how to break the law is not permitted on Boards

Lusk Doyle

digzy wrote: »

Suprisingly enough..........

The commas were designed to infer that the bike was for my use:rolleyes:

Hope that clarifies things.

I think your sarcasm detector is broken...

Lusk Doyle

Seaneh wrote: »

I think it's because the bike isn't actually for his wifey...

Yours is broken too!

digzy

Beasty wrote: »

Yep - what you are suggesting is illegal - your wife must intend using it mainly to commute. If it's mainly for your use she cannot use the scheme to buy it

Asking for advice on how to break the law is not permitted on Boards

grand.

i've had a change of heart and decided not to buy a bike. however, my wife has decided to buy a bike under the scheme and i'm gonna assist her to pick it!

Seaneh

Lusk Doyle wrote: »

Yours is broken too!

Yeah, well, so's your willy
Wha.