Director - Bike to Work Scheme

Discussion in 'Askaboutbusiness' started by Nickname, Jul 13, 2018.

  1. Nickname

    Nickname Registered User

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    I am a director of 1 person Ltd company with no employyes(I have read this being referred to as a one man band!). I am currently working from a location that is close enough to cycle and I should be there for several more months/the foreseeable future.

    Is there any issue with me availing of the bike to work scheme?

    I dont claim travel expesnes/milage, except for a few weeks when I travel internationally for work.

    I am currenlty drawing a wage from the company as a director.

    Feedback appreciated!
     
  2. srase

    srase Frequent Poster

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    70
    A Director of a company can avail of the bike to work scheme the same as any other worker
     
  3. T McGibney

    T McGibney Frequent Poster

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    As far as I know, the term is a misnomer because there's no actual requirement to use the bike to cycle to work. (If there was, it would be the most abused tax relief in the Irish tax code).

    If anyone can prove me wrong on this, please do.
     
  4. Leo

    Leo Moderator

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    9,091
    There is (or at least used to be) a declaration to be signed stating the bike will be used to cycle to work, but the government stated at the time that there will be no follow up or verification whether this is the case or not.
     
    T McGibney likes this.
  5. vandriver

    vandriver Frequent Poster

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    Can self employed people avail of the scheme?
     
  6. Ciru75

    Ciru75 Registered User

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    No, it's only for employees.
     
  7. Nickname

    Nickname Registered User

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  8. Nickname

    Nickname Registered User

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    One follow up question - Normal proctocol would be to pay back via salary sacrifice, as Director could I opt not to pay back the company for the bike. I found this on the revenue website: On the revenue website it mentions that "Items purchased under the scheme are not Benefit in Kind (BIK)." and "You may agree with your employees to operate the scheme using a salary sacrifice arrangement." Is it up to the company decide whether to do the salary sacrifice or is it a must? Thanks again for any guidance.
     
  9. Ciru75

    Ciru75 Registered User

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    There's no need to do a salary sacrifice. The company can buy the bike for you without having to charge tax on it as a Benefit in Kind.