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

awec

Yea, from the shop's point of view it should make little difference.

I would have thought BTW sales would make up a significant portion of custom in bike shops these days?

uvox

(Not sure if this should be in the Political Action thread, but here goes)

Was in a Dublin bike shop over weekend and one of the staff mentioned there was talk of the 'bike to work' tax relief scheme being modified so that employees could avail of the scheme every three years (I believe it is five now). Anyone know if there is a lobby underway to this intent?


All for it myself. Where's our Bill Cullen to campaign for a bike scrappage scheme! LOL.

Seriously, what do cyclists think of this. Would they change bikes every three years (accessories and ancillary stuff excepted) anyway? The scheme appears to be a great success.

route66

I'd be interested - who wouldn't? Can't see it happening though ...

jaqian

route66 wrote: »

I'd be interested - who wouldn't? Can't see it happening though ...

Id be interested as well. Think five years is a long time to wait for upgrade.

seamus

I've be very interested too, considering that my 3 years are coming to an end this year

I think a change to 3 years would really only pander to the likes of us and wouldn't really have an effect on the rates of those cycling to work - this is the aim of the scheme, remember?

5 years is reasonable timeframe for a commuter bike to last. In fact I would say that most commuter cyclists will happily keep their commuter bike for ten years or more, so long as it doesn't give lots of hassle.

The five-year period is probably seen as a way of rekindling the idea in people who may do it now and again, but after five years the bike has started to look a bit battered and rusty and as such is getting progressively less use. A new bike might spur them into getting back on it.

Crow92

I don't think it'd only be of interest to the likes of us, there are plenty of people who spend very little on their first btw and get a cheap bike, 3 years seems long enough the these sort of people for their cheap bike to fall apart/ want to upgrade.

couerdelion

Yep, a few lads in work bought hybrids and a year later are raging that they have to wait 4 more years before they can get a better bike to get into work.

dub_skav

It is only meant to be a Bike to Work scheme, so upgrades shouldn't really come into it.
I would see upgrades as for people who wish to cycle more often / further, however any bike should be sufficient for somebody who wants to cycle to work.

5 years should be sufficient for this purpose. I cycled to school, college and work on a bike for 8 years before it was stolen and I am up to 4 years commuting on my current bike with no plans to change it.

I also have a road bike for longer spins, but that is my own choice and not the point of the scheme.

If people do not maintain their bikes correctly, again that is not the scheme's fault.

Seve OB

I would think most people will buy one bike and expect it to last as long as possible, so recducing it to 3 years will really only appeal to the Bike enthuasiast.

Or someone who has had their bike nicked...............

G rock

I guess you have to be lucky enough to be in the same job for five years in order to have no opportunity to use the scheme again.

you can use it again If you move employment (i think)

C3PO

G rock wrote: »

.....you can use it again If you move employment (i think)

Don't think so?

j@utis

I believe it's attached to your paye, so changing jobs doesn't make difference.

Hungrycol

It's not attached to anything but your employment with your currently employer. It's a flaw in the scheme that perhaps your new employer should ask you on commencing employment if you availed of it previously and when.

CramCycle

Moved to megathread as it covers alot of issues already talked about

C3PO wrote: »

Don't think so?

I have without moving employment, I had two jobs at once, I told the finance department and they informed me that there was nothing wrong with that as their only concern is if I have used it with them before.

j@utis wrote: »

I believe it's attached to your paye, so changing jobs doesn't make difference.

Its not attached to your PAYE, you pay less PAYE as the cost of the bike is taken from your gross salary before taxes etc are applied, there is no way for them to know unless you tell them, in which case it should still make no difference.

seamus

In reality the only way that such misuse of the scheme could be discovered is if both employers were audited by Revenue and someone decided to cross-check the two sets of accounts for such an abuse of the system.

Use of the B2W scheme is not notified to Revenue, so revenue don't know that you have availed of the scheme. On the employer's side, the B2W scheme most likely just appears as a miscellaneous non-deductible expense on their annual returns, so again revenue don't track who has bought what. The only way anyone gets caught out in the scheme is if they're audited by Revenue.

I very much doubt this accounts for any significant level of abuse. I wouldn't be inclined to change job on a regular basis just so I could get a new bike in the new place.

CramCycle

seamus wrote: »

Use of the B2W scheme is not notified to Revenue, so revenue don't know that you have availed of the scheme. On the employer's side, the B2W scheme most likely just appears as a miscellaneous non-deductible expense on their annual returns, so again revenue don't track who has bought what. The only way anyone gets caught out in the scheme is if they're audited by Revenue.

Is it really abuse though, I know this discussion came up before but my understanding is that it wasn't, the system is obviously linked to your employer at the time, not to revenue.
I owned upto our finance department who told me there was nothing wrong with what I was doing as far as they could tell as it was linked to the employer and anything done with any other employer was not their concern, they wouldn't even be able to see it only for I told them.

seamus

Actually looking through the legislation, the wording is ambiguous.

You can read it one way and it says that the five-year period is per employment. If you read it another way, the five year period is exclusive of employment.

My suspicion is that since the tax liability ultimately falls on the individual (i.e. if your employer underpays your tax, you are personally liable), then the latter interpretation is probably the correct one. So if you avail of the scheme more than once in five years, the employer has no real obligation to find out if you're eligible for it. But if it's discovered, revenue will just chase you personally for the tax payment, whether you were aware of it or not.

CramCycle

seamus wrote: »

But if it's discovered, revenue will just chase you personally for the tax payment, whether you were aware of it or not.

Ambiguous is an understatement but since there is no obligation to declare it to revenue (as of yet) then I can't see it being an issue, if it is, I'll pay up, I don't get paid enough to have it make a huge difference, it was more the convenience of paying over 12 months.

SerialComplaint

Has anyone heard of bike shops who will allow you to 'top up' your BTW bike by adding in a gift voucher to the overall deal, which is then repaid over time?

lochdara

doubt it but i can use my €1000 towards a bike worth more and pay for the balance later. once paid collect bike

Beasty

You cannot buy gift vouchers under the scheme

FreeTime

SerialComplaint wrote: »

Has anyone heard of bike shops who will allow you to 'top up' your BTW bike by adding in a gift voucher to the overall deal, which is then repaid over time?

You do realise this is tax evasion?

SerialComplaint

FreeTime wrote: »

You do realise this is tax evasion?

Welcome to boards.ie - helluva first post.

Yes, I do realise this is tax evasion. That is why I'm trying to get a handle on this. I heard a little story about this being routine practice in many bike shops, and I'm trying to find out if this is the case.

Beasty

SerialComplaint wrote: »

Welcome to boards.ie - helluva first post.

Yes, I do realise this is tax evasion. That is why I'm trying to get a handle on this. I heard a little story about this being routine practice in many bike shops, and I'm trying to find out if this is the case.

OK, we'll end this part of the discussion there. Boards does not allow posters to encourage illegal activity, and anyone disclosing where this may happen or the extent to which it may happen would be doing just that (whether intentionally or not). If anyone wishes further clarification, PM me - do not respond in-thread

Thanks

Beasty

paddyman

Hi guys,

i want to get a bike on the BTW scheme but spend more than the 1k. I was wondering if it is allowable to buy a frame seperate myself and use the 1k from the BTW scheme to buy the rest IE wheels, brakes ETC.

let me know.

Beasty

paddyman wrote: »

Hi guys,

i want to get a bike on the BTW scheme but spend more than the 1k. I was wondering if it is allowable to buy a frame seperate myself and use the 1k from the BTW scheme to buy the rest IE wheels, brakes ETC.

let me know.

Well if you had read the first few posts in the thread which give an overview of the rules you would know it's whole bikes only (plus safety equipment) - you cannot buy a frame in isolation

However you can achieve the result you are looking for by paying the difference yourself. You get a bike under the scheme for say €1,500, and you repay your employer €1,000 out of pre tax income (under the scheme) and €500 out of post tax income

Bob_the_dog

I'm a little confused and need clarification on the BTW scheme.

I earn 40k but because my wife is out of work I have her tax free allowance and pay the lower rate of tax, does this mean i'll only save 31%?

Thanks Bob

Idleater

Bob_the_dog wrote: »

does this mean i'll only save 31%?

Yes.

Bob_the_dog

Idleater wrote: »

Bob_the_dog wrote: »

does this mean i'll only save 31%?

Yes.

Thanks but feck it

Deedsie

Hi,

I am trying to sell my own road bike at the moment. Going to put the proceeds towards a new road bike through the bike to work scheme. They just made it available where i lwork. I was just wondering when the new model bikes come out? What is regarded as the best bike shop in Ireland to do the bike to work scheme with?

I don't really know what kind of road bike to buy, my budget is going to be €1000. Ill probably pick up the bike in October, would I be better off trying to get a 2012 model on sale or wait for the 2013 models?

I have my own cateye strada cycling computer, a pair of unused gatorskin tyres and my own pedals so I won't need them on the new bike! Hoping this saving can go towards getting a slightly higher spec bike!

Hope someone can advise me get the best bike I can for the money I have to spend and where the best place for me to shop would be?

Thanks