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Bike to work |
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ShayGivensBum 
Jack Charlton 
The lighter coloured grass is painted Joined: 24 Aug 2010 Status: Offline Points: 8316 |
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 Topic: Bike to workPosted: 31 Jan 2014 at 9:43pm |
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Can someone help me out as I can't get my head around it
Say for example I get a bike for 450 and I'm told I'll save x amount on it. So for argument sake it ends up costing me 350. For the repayments is the amount of 350 divided by 12 or what So confused. |
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St.Pauli Reloaded 2
Liam Brady
Joined: 25 Nov 2011 Location: Planet Earth Status: Offline Points: 2841 |
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Posted: 31 Jan 2014 at 9:47pm |
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biketowork.ie its all there
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In Martin and Roy we Trust !
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Baldrick
Robbie Keane
Peyton-tly Pedantic Joined: 18 Sep 2008 Location: Ireland Status: Offline Points: 30626 |
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Posted: 31 Jan 2014 at 9:51pm |
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Sasa it comes out of your gross so it depends on what tax band you are in,
If the bike costs 500 euro and you are paid monthly. There is only 11 months left in the year now so its Basically 500 divided by 48 per cent and then divided by 11 to get your effective monthly repayment . Which is 260 euro or roughly 23.60 euro a month. If you are on the lower rate of tax which is 20 percent plus USC so I think its about 25 per cent It would cost you 375 euro or 34 a month. That's a rough guide exact tax rates may not be exact but you get the idea. If you are paying the higher rate if tax you save more money, Edited by Baldrick - 31 Jan 2014 at 9:52pm |
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AKA pedantic kunt
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Shoco
Roy Keane
Hail Hail the Celts are here Joined: 14 Dec 2008 Location: Celthick Park Status: Offline Points: 13727 |
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Posted: 31 Jan 2014 at 10:19pm |
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just remember the full price of the bike will be taken out of your gross wage, you then save the money on tax
and check with your employer to see how long the repayments to them take, with the company i work for i had to pay it off in one month
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 YOUR 3 IN A ROW LEAGUE CHAMPIONS |
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Baldrick
Robbie Keane
Peyton-tly Pedantic Joined: 18 Sep 2008 Location: Ireland Status: Offline Points: 30626 |
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Posted: 31 Jan 2014 at 10:27pm |
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Yeah that's true each employer is different some allow you to the end of the year so the earlier you buy it in the year the more you flatten the curve.
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AKA pedantic kunt
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ShayGivensBum
Jack Charlton
The lighter coloured grass is painted Joined: 24 Aug 2010 Status: Offline Points: 8316 |
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Posted: 31 Jan 2014 at 10:59pm |
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Okay so using your example of say 34 a month. Is 34 deducted from my wage each month?
The reason I am asking is because a friend of mine got 3 bikes on her bike to work scheme, for herself and 2 friends. The bike shop just wrote a receipt for a total of 1000 and the three of them got a bike each up to that amount. One bike was say 350 the next bike was 250 and the third was 400. The person who arranged the bike to work scheme is being deducted from her wage and is saying that the other 2 owe the full amounts back to her for the bikes they got but I dont think that is right. So confused.
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Baldrick
Robbie Keane
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Posted: 31 Jan 2014 at 11:03pm |
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That's the effective net that is taken from your wage each month.
But on your payslip it will be 46 euro coming out a month over a 11 month period for a 500 euro bike. It comes out of your wages before tax is deducted so in effect it would be roughly 34 euro But the variables are the rate of tax you are on and how quickly your employer wants you to pay it back by Edited by Baldrick - 31 Jan 2014 at 11:09pm |
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AKA pedantic kunt
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Baldrick
Robbie Keane
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Posted: 31 Jan 2014 at 11:06pm |
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Well it was a bad idea for them to arrange such a deal without agreeing to it before hand and its not what the scheme was invented for. If the person is on the lower rate of tax they owe 400 - roughly 25 per cent I.e 300 euro 350. - roughly 25 per cent I.e. 262.50 And 250 - roughly 25 per cent. I.e 187.50. If she is on the higher rate of tax it would be 48 per cent would be deduction. Edited by Baldrick - 31 Jan 2014 at 11:08pm |
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AKA pedantic kunt
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ShayGivensBum
Jack Charlton
The lighter coloured grass is painted Joined: 24 Aug 2010 Status: Offline Points: 8316 |
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Posted: 31 Jan 2014 at 11:14pm |
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Thanks Baldy. Can I just ask you to explain that bit please. It will show up on the payslip as 46 per month but how does it actually only equal to 34 euro a month. This is the bit I really dont get sorry.
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rossieman
Roy Keane
Joined: 01 Apr 2011 Status: Offline Points: 14254 |
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Posted: 31 Jan 2014 at 11:25pm |
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for example if you earn €500 per week and the bike cost is deducted at €50 per week.Instead of paying tax on €500 p/w you would now be liable to pay tax on €450 therefore paying less tax and making a saving. |
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Sham157
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Joined: 17 Jul 2009 Location: Monaghan/Dublin Status: Offline Points: 33019 |
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Posted: 31 Jan 2014 at 11:25pm |
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It means Bowsie that the money is taken out of your wages before your PAYE is deducted. In effect it means you pay tax on a smaller amount of your wages than normal which means less tax.
Rough example. €2500 pm wages. Normally you pay tax on the full amount so say you pay €500 in tax meaning you take home €2000 In the scheme you still get paid €2500 but your repayments are deducted before tax. So €50 pm for the rothar leaves €€2450 which is now taxable . Edited by sham157 - 31 Jan 2014 at 11:27pm |
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Sham157
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Posted: 31 Jan 2014 at 11:26pm |
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Rossie beat me to it
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Baldrick
Robbie Keane
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Posted: 31 Jan 2014 at 11:26pm |
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Sham earns more than rossie :)
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AKA pedantic kunt
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Sham157
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Posted: 31 Jan 2014 at 11:27pm |
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rossieman
Roy Keane
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Posted: 31 Jan 2014 at 11:28pm |
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keeping it simple . Many on here avail of the scheme?I only did it last year but anyone who went in the first year it was available can now reapply as its into year 5 doesn't need to be 5 years . Edited by rossieman - 31 Jan 2014 at 11:31pm |
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ShayGivensBum
Jack Charlton
The lighter coloured grass is painted Joined: 24 Aug 2010 Status: Offline Points: 8316 |
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Posted: 31 Jan 2014 at 11:32pm |
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Ah okay okay I think ive got it.
The girl that got the three bikes on her scheme is on the lower rate I think. They got the bikes last summer and they are only getting around to sorting it out now as to who owes what. My argument was that the 2 people that got the other bikes on her scheme definitely dont owe her the full amount that the bikes cost in the shop. The payments were spread out over 12 months and she was saying that around 80 has been taken out of her wages each month for the bikes so they have to divide the 80 between the three of them per month but id imagine she doesn't realise that she is paying less tax at the same time. Am I right?
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ShayGivensBum
Jack Charlton
The lighter coloured grass is painted Joined: 24 Aug 2010 Status: Offline Points: 8316 |
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Posted: 31 Jan 2014 at 11:34pm |
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I availed of it myself and picked up my bike today. Im delighted. I hadnt a clue how it was going to effect my monthly wage but I think ive got it now. Im on the lower rate of tax anyway so wont save the max amount but its better than a kick in the bollox from a galloping horse and all that
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Baldrick
Robbie Keane
Peyton-tly Pedantic Joined: 18 Sep 2008 Location: Ireland Status: Offline Points: 30626 |
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Posted: 31 Jan 2014 at 11:36pm |
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The easier way of calculating it is basically getting the price of the bike and take away the tax rate she is on say 20 per cent PAYE plus prsi and USC which is is roughly 26 or 27 per cent I think so as I said before for the 400 euro bike is
400 - 27 per cent of 400 which is 400 - 108 = 292 euro. That makes it simpler Edited by Baldrick - 31 Jan 2014 at 11:37pm |
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AKA pedantic kunt
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ShayGivensBum wrote: