CYCLE TO WORK FANCY A SHINY NEW BIKE? THEN GET ON THE BIKE TO WORK SCHEME
WITH the warmer weather finally arriving many people are looking to get out and about and what better way than on a shiny new bike.
Cycling is a great way for people of all ages to get fit, while taking in the wonderful sights, sounds and smells of the Irish countryside.
The good news is that buying a bike doesn’t have to cost you an arm and a leg. Let the Government help you pay for it. Local independent cycle shops across the county are on hand to help eager pedal-pushers avail of the government Bike to Work scheme, which allows people to purchase high end bicycles at a fraction of their price.
People prepared to pedal to work can save up to an impressive 50 per cent of the bicycle cost AND accessories, and spread the cost of the purchase over a year by having the price deducted out of gross wages over up to a 12 month period. Availing of the scheme, which is supported by the majority of employers, is a tax deductible affair.
If you are in the higher tax bracket you can save around 50 per cent of the cost of your bike, while those on the lower tax bracket can save approximately 30 per cent of the cost of the bicycle and all accessories.
WHAT THE EMPLOYEE NEEDS TO DO:
1 Check that your employer will take part in the scheme 2) Visit your local independent cycle shop and pick out your bicycle and accessories. 3) Take advice from experts in your local independent cycle shop about which bike best suits you.
4) Get invoice from bike store to pass on to employer. 5) When the bike stores receive payment from the employers, you can pick up your bike and accessories. This happens very quickly and before you know it you’ll be hitting the roads for fun 6) Your employer will then deduct that amount from your gross wages over the coming year. 7) Anyone on a higher tax bracket purchasing a bike and accessories of €1000 will get almost 50 per cent off. Spread out through the year, this costs you €41.50 per month, which is automatically deducted from you wages. Anyone on a lower tax rate, you get approximately 30 per cent off.
WHAT THE EMPLOYER SHOULD KNOW: 1) The benefit for employers is that they save on employee PRSI and contribute towards having fit and happy staff. 2) When an employee brings an invoice from their cycle shop, the employer should make a payment to them by cheque or bank transfer. 3) The employer then deducts that amount from the employees’ gross wages over the coming year.
4) The employer keeps the invoice and a record of the `salary sacrifice’ on file.
5) There are no forms to fill out, or any need to inform the revenue commissioners.
The bike to work scheme is a Government initiative aimed at promoting healthier lifestyles, while reducing the number of cars on the road. Get healthy, save on petrol and parking expenses, and enjoy a new bike at a fraction of the cost. To learn more go to your local independent cycle shop. CYCLE TO WORK TEACHERS
A different practice is involved for teachers who wish to participate in the scheme. Teachers need to:
1) Fill in a document with personal details, which is available from the department of education website.
2) Bring this to the bike shop when picking out your bike, where the staff will fill in the purchase details. 3) Send the forms to the department. 4) As soon as the cheque from the department goes through.