Cycle to work query

[michaelowen]

Hi Guys,

Quick question - Im no longer eligible for the cycle to work scheme as I used my go on it several years ago, only for bike to be stolen several months later. As you can only do it every 5 years, a colleague has agreed to go through process for me as he will never need to use scheme for himself. Obviously I plan to pay for whatever is deducted from his wages. Bad idea? Any other implications other that the deduction from his wages that I will cover? I just want to make sure that once I pay money back, he does not need to worry about anything else.

Thanks!

 

[peteb]

Technically its tax fraud though isn't it?

 

[stobear]

what if he buys the bike on the scheme and then sells it on?

 

[peteb]

Has to keep it for x amount of time

 

[RainyDay]

Has to keep it for x amount of time

I don't think there is anything explicit in the scheme rules about keeping the bike, but they do say that the purpose of the bike is to cycle to/from work

What is a qualifying journey?
The bicycle and/or safety equipment must be used by the employee or director mainly for qualifying journeys. This means the whole or part (e.g. between home and train station) of a journey between the employee’s or director’s home and normal place of work or between the normal place of work and another place of work.

If you sell the bike, you can't use it for qualifying journey, so it is a tax fraud.

 

[Eithneangela]

Surely there's a provision whereby if your bike is stolen, you inform the Garda, it's logged! I assume that the biketowork scheme logs some details of the bike, including stuff you need to tell Gardai when it's stolen.

 

[huskerdu]

Surely there's a provision whereby if your bike is stolen, you inform the Garda, it's logged! I assume that the biketowork scheme logs some details of the bike, including stuff you need to tell Gardai when it's stolen.

No. Sorry, there is no cycle to work government department.

The cycle to work scheme simply allows you to buy a bike to cycle to work without paying income tax on the money.

The scheme is administered via the pay department of your employer.
Your employer is supposed to only allow you to buy the bike if you do actually cycle all or part of the way to work.

Your employer or the Revenue do not keep any details of the bike.
It is now like any other bike that anyone owns.

 

[huskerdu]

Here is some more info on the scheme.
There are very few rules apart from the fact that the employer must pay for the bike and get reimbursed by you and the employer has to do some basic check that you cycle to work, but a signed declaration from you is acceptable.
[broken link removed]

In answer to the OPs question, what you are asking your colleague to do avail of the cycle to work scheme, and lie on the declaration that he will cycle to work and then sell you the bike.

As the rules do not state how often you have to cycle to work, or how long you have to keep the bike for, he could use it once to satisfy his conscience and your HR department.