Budget 2012

The Cycle to Work Scheme in General

The Cycle to Work Scheme is an ongoing scheme without an expiry date. It was not referenced in Budget 2012 so the provisions in Budget 2008 still apply. These are described in the Revenue Guidance document which is available on our About the Cycle to Work Scheme Page.

The Budget 2012 is available on the Department of Finance’s Budget Page.

VAT

The rate of VAT on certain products has changed in Budget 2012. Shops will adjust their prices as they see fit. This will not affect the administration of the Scheme from the Employer’s perspective. With the scheme the employer recovers the full cost of the bike from the employee. Because of this the VAT on the bike cannot be claimed by the employee and is not shown on Bike to Work Ltd’s Invoices.

Employee Savings

The rates for PAYE Income Tax, Pay Related Social Insurance (PRSI) and Universal Social Contribution (USC) remain unchanged.
The way Employers recover the cost of the bicycle by reducing the Employee’s gross/pre-tax salary through ‘Salary Sacrifice’ remains unchanged.
Bike to Work Ltd will adjust our Savings Calculator to reflect any changes to the bands for PAYE, PRSI and USC.

Bike to Work Ltd 8th December 2011.