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

DaveyDave

Asked my local shop of they had a spare bike box, said they've over 100 as they've gotten tons of new bikes in. Lots of them are causal cyclists stuff but nice to know stock is flowing.

loyatemu

https://www.boards.ie/discussion/comment/119048588#Comment_119048588

I ordered a Cube in August, was due in January, then May, now pushed back to September. Pretty annoying.

byrnem31

The state of the bikes they are sending out too. Botchy paint jobs, front cables not finished correctly. Some bikes have had serious issues. One guy had an agree ultegra a month and the steerer limiter broke on it through no fault of his own. Cube have told him he must have crashed it and its not covered by warranty.

Screenshot_20220511_131936_com.google.android.youtube.jpg

Onecoolcookie

Q on the CTW - I'm starting a new job in June after moving back to Ireland, this will affect if I'm in the higher tax band right? I think I will just about be for the last couple months. Is it better to hold off and do the scheme next year for max savings? Sorry don't really completely understand the tax band elements of the scheme.

Also best bang for your buck commuter bike for 1,250? Cheers

DaveyDave

Question for a friend, how does the 40% bracket work with the scheme? Do you just have to be in the 40% bracket when you apply or does your salary need to be in the 40% bracket for the year? They got bumped up to €37k in March, however they have done plenty of overtime so their total for the year will be above €36,800. Their HR department didn't have a clear answer when they asked how much they would save on a €1,250 bike and they're only interested in using the scheme if it's full savings.

HeidiHeidi

Without being an expert on it - your deduction is taken from your weekly/ monthly pay before tax, so it's whatever rate you're paying at the time of the deduction. I think.

loyatemu

as above, the company will make the deduction on a monthly/weekly basis (unless they do it as a single lump sum) - but ultimately your tax liability is calculated on an annual basis, if he's into the 40% bracket by year end, he should be able to claim back if he's overpaid tax as a result of doing C2W

Seth Brundle

https://www.boards.ie/discussion/comment/119106101#Comment_119106101

As it is payroll that process it, the rate depends on what tax rate they are on during the "repayment" period. Put simply, the cost of the bike is taken from their salary before tax (spread over an agreed number of months). Depending on the tax rate applicable, the amounts will be the higher tax rate applicable.

CramCycle

https://www.boards.ie/discussion/comment/119106101#Comment_119106101

Once they are in it at the end of year, all they need to do is submit a balancing statement request which will sort out if they have overpaid tax. For your friend, they need to be the price of the bike to work scheme over the bracket line. So being at the bracket line means nothing, for the year they need to be at least the price of the bike over the bracket line to get the full amount.

https://www.boards.ie/discussion/comment/119094280#Comment_119094280

Depends on how high into it you are, would half your annual salary still have you in the higher tax bracket (as in tax year is the calendar year)?

Onecoolcookie

https://www.boards.ie/discussion/comment/119106199#Comment_119106199

Cheers for replying, yeah half annual salary would just about reach the higher bracket. My confusion was if it was based on salary for the calendar year or salary for the 12 months of sacrifice once I sign up to the scheme?

Idleater

Just be aware that deductions (like pension or any other allowances) are also taken from the gross amount and may reduce to the standard rate.

This is my understanding.

Using round figures: if the cutoff is 35k and you earn 36k in the tax year you only get 1k relief at the higher rate.

CramCycle

https://www.boards.ie/discussion/comment/119106461#Comment_119106461

I get you, basically it will apply across years. To make it simple, if you start with 6 months left in the calendar year, half will be based on this years and half on next years.

branners69

Anyone know how long Peoplepoint take to sort payment to the company so they can release the bike?

I am coming up to to 2 weeks tomrrow, it says 4 to 6 weeks to process but I was hoping this was the worst case scenario!

According to the search function on biketowork website, no Dublin based stores that take part in the scheme, sell the Cannondale brand.

From other searches I can see cyclesuperstore do. Does anyone else know of oother Dublin or Wicklow shops that sell Cannondale under the biketowork?

Squidgy Black

https://www.boards.ie/discussion/comment/119362305#Comment_119362305

360Cycles in Clontarf stock Cannondale, as to 2wheels in sandyford, to be honest a quick glance at that list of shops on the biketowork website looks like the brands list is completely incorrect, you’d be best off just flicking through the shops websites yourself

magicbastarder

you could ask your employer not to use biketowork, which is a handy way for a business to skim a nice bit of cash for little work.

It's the HSE so I don't think they'd be ones to skim....oh wait!

I ended up being enamoured by a Merida Scultura 400 in the end.

DaveyDave

Most manufacturers list shops on their website. I don't know how accurate or useful the shop would be. My local is listed as a dealer for a few brands they never stock so would be useless unless you wanted them to order in a specific bike for you, no chance of window shopping or having a look in there.

You could then check those shops against the list you're allowed buy from.

phelixoflaherty

Using the full €1250 at the higher tax rate, what would one pay back in total roughly?

CramCycle

https://www.boards.ie/discussion/comment/119610621#Comment_119610621

Technically you pay the full €1250, your tax will be reduced by almost €640 so the bike will have cost you €610 of take home pay, give or take a few euro.

phelixoflaherty

Thanks a million for that.

I'll be able to keep a rough eye on the first few deductions to make sure things are going straight

CramCycle

https://www.boards.ie/discussion/comment/119614738#Comment_119614738

Dont look at the numbers on your paycheck, just compare the previous net take home to the new take home and that will give you an idea if they have done it right. Basically you'll be a smidgen over 50quid a month down on take home if they haven't messed up.

fred252

I few friends got a kids bike and adult bike on the CTW scheme. I went to the local shop to do similar but they will only put an adult bike through the scheme. I know they aren't supposed to sell kids bikes through the scheme but is this something that has been clamped down on recently or does it just depend which shop you go to?

CramCycle

https://www.boards.ie/discussion/comment/119633642#Comment_119633642

It is a form of tax fraud, of which we do not allow discussion. The bike shop are not committing any crime by doing this but you are, as is your company if the invoice has the two bikes listed.

Squidgy Black

https://www.boards.ie/discussion/comment/119633731#Comment_119633731

Even then technically the shop is assisting with tax fraud which I’d imagine revenue wouldn’t look too kindly upon.

Especially if they’re potentially modifying invoices to allow two bikes to be purchased under the scheme

DaveyDave

If the bike to work allowed kids bikes that would make sense. I wouldn't expect that from the crowd that think €250 covers an ebike.

CramCycle

https://www.boards.ie/discussion/comment/119633915#Comment_119633915

Apologies, I just meant if they ask for the full amount from the middle men or company, it's just a purchase as shops don't run the scheme but you are right. If they put up a receipt that is incorrect with the intention of assisting fraud, revenue will not take kindly to it.

cletus

I understand that boards.ie as an entity don't want discussions about potential tax fraud happening on their platform, which is the reason why the above conversation gets shut down semi regularly, but how many people, would anyone here care to estimate, actually use the bike for its intended purpose, i.e.

Qualifying journeys

You must mainly use the bicycle and safety equipment for qualifying journeys. This means the whole or part of a journey between your home and your normal place of work.

Your employer will ask you to sign a statement stating that the bicycle:

is for your own use

will be mainly used for qualifying journeys

The percentage may be higher in urban areas, where bicycle commutes are relatively an easier option, but (anecdotally I know), I don't know a single person who has availed of the scheme, and who uses the bike primarily for commuting.

DaveyDave

Hi all,

My sister is getting a bike via Travel Hub and was asking if I knew how long the voucher would take. No idea and can't find anything via search. Anyone used them recently? How long does it normally take to issue a voucher? Her payroll already confirmed the salary deduction.

CramCycle

https://www.boards.ie/discussion/comment/120211225#Comment_120211225

Typically after the next payroll cycle if paid monthly, so if she's already done it, she should have it before the end of the month.