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

wackojacko1979

Hey folks, Have been on to my boss again and I think its a no-go:(!! Fortunately, my wife who happens to be a teacher is suddenly thinking of buying a bike;). My question is, is there a timeframe on the salary sacrifice. Some people have told me that if she applies at the wrong time the salary sacrifice might all come out in a couple of months which is not affordable to me. Any insight from all the experts out there?:D
Thanks in advance

le petit braquet

wackojacko1979 wrote: »

Hey folks, Have been on to my boss again and I think its a no-go:(!! Fortunately, my wife who happens to be a teacher is suddenly thinking of buying a bike;). My question is, is there a timeframe on the salary sacrifice. Some people have told me that if she applies at the wrong time the salary sacrifice might all come out in a couple of months which is not affordable to me. Any insight from all the experts out there?:D
Thanks in advance

From http://www.education.ie/admin/servlet/blobservlet/cl0036_2011.pdf?language=EN&igstat=true it appears that the deductions for teachers must finish by November in any year. Therefore the earlier in the year you purchase the bike, the longer the period of salary deduction available

ixtlan

Sorry, if this is an obvious question, but I've read this thread and other info and not found a definitive answer.

If I leave my job or am made redundant during the 12 month repayment period, is it the case that I then lose the tax relief for the remaining period? To clarify.. I buy a bike for 1000e, am due to in effect pay approx 500e over the course of a year, I leave after 6 months, have paid 250e, and then have to pay 500e from my final paycheck?

That seems to be what this says on the bike2work.ie web site
What happens if I leave my job before I’ve finished paying for my bike?
Under the terms of the purchase agreement, the agreement to pay your loan is "non-cancellable". This means that you will need to settle all outstanding monies before you leave. The outstanding balances will be deducted from your final net salary payment. Settlement will be from net pay because once you leave the employment, you also leave the bike scheme, and are no longer eligible for tax deductions.

Maybe I mis-understand because I would have expected more people to be worried about the effect of leaving their job for whatever reason.

Ix.

hesker

I would take that to mean you settle up the balance of whatever is left in the €500 in your final paycheck. So in effect you pay the same amount only over a shorter period.

ixtlan

I agree that's the sensible interpretation, but it is very ambiguous. I mean, the payments for the purchaser always come from net pay. The only relevance to gross/net is that each month the total without tax relief is subtracted from gross pay. By insisting that the outstanding payments will be from net pay suggests that the tax relief part is lost. I found some comments about the UK scheme (which I understand is different) where the understanding was that leaving the job did lose the purchaser the remainder of the tax relief.

I think you are right, but such lack of clarity annoys me!

Ix.

Mr.David

I presume I could pay it back all in one month as opposed to over 12?

Main reason being that I'm not sure I'll still be here in 12 months time and don't want to end up losing all the tax benefit!

Anyone done it? Any reason not to?

Idleater

Mr.David wrote: »

Anyone done it? Any reason not to?

I had to.
The benefit for you to split it over a year is that it's effectively an interest free loan. You don't pay less /more either way it's just x or 12 times x/12

irishbuzz

Hi All,

My company is running the scheme through Bikes4work (One4All). They usually open up a two week window once a year for applications. This year I decided to go for it and with the deadline closing I went into a bikestore and had them draw up a quote on a particular road bike (plus accessories) for the full €1000 and sent of my application with this.

While waiting on the voucher I actually ended up becoming more interested in the technical aspects and now I kinda wish I would have gone for a better spec'd bike and maybe even a different brand. Yep, good ol' buyer's remorse! Anyway, I have just received my voucher in the post and I notice that it is not specifically made out to the original store.

My question is:
(A) - Can I use this voucher to I buy a better spec'd bike in the same store?
(B) - Could I use the voucher elsewhere in a different bikestore?


My apologies if this question has been asked previously. I honestly searched.

duffyshuffle

If I work for two employers

1st employer - I earn €40,000 but they do vouchers for b2w
2nd employer - I earn €10,000 but they allow you to buy bike anywhere with cheque

If i wanna use the 2nd employer, do I still get 50% off the €1,000?

Thanks

Idleater

duffyshuffle wrote: »

If I work for two employers

1st employer - I earn €40,000 but they do vouchers for b2w
2nd employer - I earn €10,000 but they allow you to buy bike anywhere with cheque

If i wanna use the 2nd employer, do I still get 50% off the €1,000?

Thanks

Your annual salary is 50k, so assume that your pension and other deductions allow you the 1000 at the high rate then yes.
Presumably with two salaries you do an end of year tax return so your income from the second job is 9k effectively.

duffyshuffle

Idleater wrote: »

Your annual salary is 50k, so assume that your pension and other deductions allow you the 1000 at the high rate then yes.
Presumably with two salaries you do an end of year tax return so your income from the second job is 9k effectively.

Ok thanks! I know it appeared possibly a stupid question!

Think have head around it fully now, so gross pay is down €1,000 no matter what, so therefore i'm not paying tax that I 'should' be paying of €480± with either employer, so its not the employer that matters.

2wheels in Sandymount told me it does matter :rolleyes:

MAR86

Hi Guys,

I read all the posts but I couldn't find anything on this. It is a silly question, but maybe you can help me.

As far as I understand the employer cannot claim an input credit for the VAT paid. Is the VAT amount a cost of the bike then? Let's say the bike is 400 * 23% VAT = 492. Is this the amount of salary sacrifice or just the cost of the bike itself?

Thanks a lot!!!

Beasty

MAR86 wrote: »

Is the VAT amount a cost of the bike then?

Yes

MAR86 wrote: »

Let's say the bike is 400 * 23% VAT = 492. Is this the amount of salary sacrifice or just the cost of the bike itself?

The salary sacrifice should be 492

MAR86

Thanks a lot!!! You were really fast!!!

Beasty

MAR86 wrote: »

Thanks a lot!!! You were really fast!!!

... that's what I try to keep telling myself

Hurler85

Is there a minimum salary that you be on before you make any savings on the BTW scheme? I am on a graduate salary of €21,000 so I would just like to clarify that it would be worth my while to avail of the scheme.

awec

http://www.biketowork.ie/employee-information/

Beasty

Hurler85 wrote: »

Is there a minimum salary that you be on before you make any savings on the BTW scheme? I am on a graduate salary of €21,000 so I would just like to clarify that it would be worth my while to avail of the scheme.

If you are currently paying tax under PAYE, there's something to save. If you're not (and it's largely dependent on what tax credits you get), there's not

seanin4711

Can anyone point me in the direction of a decent shop so as to buy the above bike?
The choice in Galway is so-so.
Great Frames (Felt,BH,Cube etc) but sora groupsets on everything!!!
They really can see the punters cominng with putting the bog standard stuff on the bikes thereby maximising profits!
j

irishbuzz

I never actually came back to say how I got on, but I guess it's better late than never.

irishbuzz wrote: »

Hi All,

My company is running the scheme through Bikes4work (One4All). They usually open up a two week window once a year for applications. This year I decided to go for it and with the deadline closing I went into a bikestore and had them draw up a quote on a particular road bike (plus accessories) for the full €1000 and sent of my application with this.

While waiting on the voucher I actually ended up becoming more interested in the technical aspects and now I kinda wish I would have gone for a better spec'd bike and maybe even a different brand. Yep, good ol' buyer's remorse! Anyway, I have just received my voucher in the post and I notice that it is not specifically made out to the original store.

My question is:
(A) - Can I use this voucher to I buy a better spec'd bike in the same store?
(B) - Could I use the voucher elsewhere in a different bikestore?

I ended up bringing my voucher to a different bikeshop and purchased a better bike without any problem. I had the shop provide me with a new quote for the bike and I handed it over to the folks at work who were handling the scheme and again that was fine. So, I guess the answer to A & B were Yes.

Oh and the bike's been going great since

mossey79

Any know if there is a delay in issueing the vouchers at the moment. The money was taken out of my wages on the 8th of June, but I still have not received the voucher. I've contact our HR on this and they are trying to find out what is going on, as it usually takes 7-10 days for the voucher to come.

slookie

Just a quick question. I got a cheque off accountant this morning for a bike Im buying in Kilkenny. He said "Oh just so you know, that has to be paid out of your wages before year end"...as in By December? Is this right??

Beasty

slookie wrote: »

Just a quick question. I got a cheque off accountant this morning for a bike Im buying in Kilkenny. He said "Oh just so you know, that has to be paid out of your wages before year end"...as in By December? Is this right??

Depends - if that's how your employer set up the scheme then yes. You should have signed a salary sacrifice arrangement to this effect

slookie

Well, he has only ever done it for one other person and she is on hols at moment so I can't ask her. He said, "Oh it's not my decision, that's just the way the scheme works"???

Idleater

As Beasty said, each employer has to administer the scheme in their own way. In my case I had to pay it out in one go from my next paycheck.

emma62

Hi all just a quick question about the btw scheme. i was in a bike shop today, i was told by the shop that there a minimum spend of 500€ is this true. ive been googling all afternoon and i cant find anything about a minimum spend. i didnt go with anything there cause im hoping to go to another shop in a few days but i dont want to be hit with the same thing again.

Cee-Jay-Cee

That is something that particular bike shop has in place but there is no lower limit applied by the actual scheme itself.

Beasty

Bike shops do not participate in the scheme. They simply sell bikes (and other stuff of course). Your employer can buy from any shop it wishes - I'm sure the one in question does not wish to turn business away

emma62

thanks for the replies, i have been in contact with 2 shops this morning and they said there was no minimum spend. The other shop just wasnt bothered after i said about the btw scheme.

Beasty

A bit strange for them to turn away business, unless they are expecting employers to insist on some additional discount