FAQ that cover Bikes and Ticket
What is a salary sacrifice arrangement and how do I make my savings?
A salary sacrifice happens when an employee gives up the right to receive part of the pay due to them under their contract of employment in return for the employer's agreement to provide some form of non-cash benefit, in this case the purchase of a bicycle and related equipment. You will make salary sacrifice payments from your gross rather than net salary.
What is the payback period?
This will be up to 12 months depending on the options that your employer provides.
Can I avail of both the Ticket scheme and Cycle to Work schemes?
Yes. These schemes are not mutually exclusive.
What happens if I leave my job before I've finished paying for my bike or ticket?
Under the terms of the purchase agreement the order is non-cancellable. This means that you will need to settle all outstanding monies before you leave. The outstanding balances will be deducted from your final gross salary payment.
How will salary sacrifice affect my pension?
Your pension contributions are payable on your full salary. Consequently, your pension and related benefits are not affected by the sacrifice.
What happens if I go on unpaid leave?
You will have to check with your employer. The remaining deductions may be made before you go on leave or postponed until your return.
What happens if I am made redundant or my contract is terminated?
Any remaining deductions will be taken from your final salary payment.
Can I purchase a bike from one retailer and equipment from another?
Revenue stipulates that the purchase of the bicycle and safety equipment must be processed in one transaction only.
I want to join the scheme / what next?
Visit your local bike retailer and follow the steps set out above to order your voucher.
FAQ for Bikes
What is the scheme?
The cycle scheme allows employees to buy a bike and associated equipment tax free.
What is covered under the Cycle to Work Scheme
The Revenue rules say you can get new bicycles (including cargo bikes / electric assist cargo bikes) and pedelecs (electrically assisted bicycles which require some effort from the cyclist). The scheme does not cover: motorbikes, scooters or mopeds; second-hand bicycles or equipment; bicycle parts or associated equipment.
Can I get a Scooter?
No. The Revenue rules say you can only get bicycles and pedelecs (electrically assisted bicycles which require some effort from the cyclist) not scooters.
What is the Cycle To Work scheme?
The Cycle to Work initiative gives you the opportunity to sacrifice part of your salary in return for one bicycle and/or allowable safety equipment, which should be used primarily for part or all journeys to/from work. Under the scheme you don't pay Income Tax, PRSI orUniversal Social Charge on the price of the bicycle and/or safety equipment up to the value of €1,250 for regular bikes, €1,500 for Electric Bikes and €3,000 for a cargo or electric cargo bike; To take part in the Cycle to Work scheme employees will need to agree to reduce (sacrifice) an agreed amount of their salary for a set amount of time, which can be no longer than 12 months.
What is the purpose of the Cycle To Work scheme?
The purpose of the scheme is to encourage more employees to cycle to and from work, or between work places, thereby contributing to lowering carbon emissions, reducing traffic congestion and improving health and fitness levels.
Is there any limit on the price of the bike I can obtain?
Yes, there is a limit on the price of the bike, you will only be able to tax relief up to a maximum of €1,250 for regular bikes, €1,500 for Electric Bikes and €3,000 for cargo or electric cargo bikes. For more expensive orders you can pay the balance in cash directly to the shop. There is no minimum amount but please note that you are only allowed one application every four years regardless of the amount used.
What happens if the bike gets stolen before I've paid for it?
It will still be down to you (employee) to complete the full payment even if you no longer possess the bike, which means if the bike is stolen the employee will be liable for any outstanding monies without any tax exemptions. It is very important to insure the bike, and any goods fitted to the bike, to safeguard against the losses following theft. HubEx offers discounts on bike insurance at www.travelhub.ie/insurance . You can obtain safety equipment from HubEx partnering shops, where you can ask for approved Secure D-locks and cable locks to conform to insurance companies requirements.
What cycle-related equipment is tax-allowable under the scheme?
You can get a new bicycle, but not bicycle parts. The following accessories are covered: Bells, clips, dress guards, helmets, horns, lights, locks, mirrors, mud guards, panniers and straps, are all included, as are pumps, puncture repair kits, cycle tools, reflectors and reflective clothing. While raingear isn't covered outright, clothing that is both waterproof and reflective.
How do I go about getting a tax-free bike through HubEx?
The scheme is a voucher scheme and you will need to apply for a voucher to redeem against your goods when you go to collect them from a local participating bicycle shop. To obtain your voucher you need to:
- Access to your company HubEx online microsite where you print off a quote form.
- Visit your local participating bicycle shop to choose your bike and equipment.
- Having got the quote from the shop, return to the website and enter the details.
- Once the quotation is approved by your HR department HubEx will invoice your employer.
- Once payment is made for the bike package by your company a secure voucher will be emailed to you.
- Redeem your voucher at the bike shop and collect your goods (you must provide your Company photo ID card or current Drivers license or Passport to do this).
Who purchases the bicycle and/or safety equipment?
The employer must purchase the bicycle and/or safety equipment for you so that you can make your Income Tax,PRSI and USC savings via Salary Sacrifice The exemption will not apply where an employee purchases a bicycle and/or safety equipment and gets reimbursed by his or her employer.
How many times a week to I have to use the bike for work?
There is no requirement for you to cycle to work for a specified number of days throughout the year and there is no special requirement for you to record your trips. The scheme does require that the bike is mainly used by you to travel to work. You can also use the bike for leisure at weekends and on holiday.
Can home-based employees avail of the scheme?
Yes. If the bicycle is used for work related journeys, for example trips to the post office or to collect office supplies.
Do I have to keep a record of my commuting mileage?
Revenue does not expect employees to keep a record of mileage.
Is it my responsibility to insure my bike?
Yes, even if you are still paying for your bike through salary sacrifice. HubEx offers discounts on bike insurance through www.travelhub.ie/insurance
Can I get a bike from HubEx mail order?
HubEx partner shops are capable of supplying bike packages mail order from their shops, under the Government's green travel plan. However, there are distinct advantages when buying from your local bike shop that will be the first port of call for advice, servicing, after sales and warranty.
Do I need to maintain the bike myself?
You are responsible for maintaining the bike for your own use. Your local shop will be able to advise you about necessary servicing depending on how you use your bike. They are also likely to give your bike a first free service once you have bedded it in.
What happens if I do not spend the full value that I apply for?
The Salary Sacrifice deductions are calculated using the amount you apply for and which are specified on yourSalary Sacrifice Agreement If you do not fully utilise the amount, your salary will still be reduced by the amount that you applied for and which you agree to and when signing your Salary Sacrifice Agreement. If there is a shortfall, you can obtain relevant safety equipment to make up the difference. The shop cannot give you any change or store credit as this is against the Revenue rules for the scheme
FAQ for Travel Pass tickets
What is the Taxsaver scheme?
The Taxsaver initiative gives you the opportunity to sacrifice part of your salary in return for travel tickets, which should be used primarily for part or all journeys to/from work. Under the scheme you don't payIncome Tax, PRSI or Universal Social Charge on the price of the ticket. To take part in the Taxsaver scheme employees will need to agree to reduce (sacrifice) an agreed amount of their salary for a set amount of time, which can be no longer than 12 months.
What is the purpose of the Taxsaver scheme?
The purpose of the scheme is to encourage more employees to travel to and from work, or between work places, thereby contributing to lowering carbon emissions, reducing traffic congestion.What kind of savings can I expect on my commuter expenses?
Savings vary depending on the type of ticket you choose and on your income band. You can get an estimate of the savings you can make https://www.travelhub.ie/savings
Is there any limit on the price of the ticket I can obtain?
No, there is no limit on the price of the ticket.
What happens if my Annual ticket won't work in the machines?
When we issue your ticket you will receive an email with instructions on how to activate the ticket on your Leap Card. You should follow the instructions and if you still have problems raise a support request with us.
What happens if my ticket is lost or stolen?
We recommend that Leap Cards are registered to assist in the replacement process. They can be registered at https://www.leapcard.ie/
- If your Leap Card is registered on https://www.leapcard.ie/ then login there and request a replacement.
- If you didn't register your Leap Card on https://www.leapcard.ie/ then raise a support request with us. We will find out the first ten digits of your Leap Card number. You will need to ring Leap Card to get the full 14 digits. You can then register the lost card at https://www.leapcard.ie/ and request the replacement there.
Can I buy a monthly or annual ticket and then claim the tax back from the Revenue Commissioners?
No. All TaxSaver monthly and annual tickets must be purchased by the company on behalf of the employee asper Revenue guidelines.
Are TaxSaver Commuter Tickets cancellable?
We cannot cancel ticket orders once we have invoiced your Company. In some cases partial mid-year refunds of tickets may be available depending on the policy of your company and operator e.g. if you have moved home or office.
What happens if an employee leaves or is dismissed from their position while the TaxSaver Commuter Ticket is still valid?
It depends on the arrangement reached with the employer - an employee may keep the ticket or may be required to return it.
Are there any fixed dates on which tickets are valid?
Monthly tickets are valid for one calendar month, while annual tickets are valid for one year commencing from the first day of any month.
Is sacrificing salary the only way for an employee to get a TaxSaver Commuter Ticket?
No. The ticket can also be provided in lieu of a cash bonus, for example as a Christmas bonus, and because the ticket is tax free, it provides much better value than a cash bonus.
Are ticket refunds allowed?
See www.travelhub.ie/refunds for full details of refunds and whether they are available.
Where is my Ticket?
If your ticket is at Processing it is being ordered and it will be with you for the 1st of the month. If your ticket is a renewal it will be uploaded onto your existing card on the 1st after it has been activated. If you have changed your ticket type or this is your first order, it will be sent to your HR via same day delivery courier post. Tickets are being processed for delivery and will be with you by the 30th at the latest.
Are ferry tickets covered under the Travel Pass Scheme?
The Revenue Guidance on the Travel Pass Scheme includes operators who provide ferry services within the state, operating a vessel which holds a current valid passenger ship safety certificate, where the relevant licence or certificate is issued by the Minister for Transport, Tourism and Sport.https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-03-11.pdf. Operators on TravelHub Ferry have passenger ship safety certificates which are available from the operators on request.
FAQ for Employers
Who is entitled to use HubEx?
Under the initiative, salaried employees who are employed and paying PAYE tax in Ireland.
How does it work?
The employee chooses a bicycle and any associated safety equipment and the employer would purchase same on behalf of the employee. The employer will then recover the cost of the bike from the employee using Salary Sacrifice deductions from their gross pre-tax pay.
How will it be enforced?
It is not envisaged that there will be a notification process involved, but the purchase of bicycles and associated safety equipment by employers for employees will be subject to the normal Revenue audit procedure with the normal obligations on employers to maintain records.
What accessories and equipment is included under the tax exemption?
Bells, clips, dress guards, helmets, horns, lights, locks, mirrors, mud guards, panniers and straps, are all included, as are pumps, puncture repair kits, cycle tools, reflectors and reflective clothing. While raingear isn't covered outright, clothing that is both waterproof and reflective is covered.
Who are HubEx?
- Bike to Work Ltd t/a HubEx is an independent company created to help both employers and employees take advantage of the Green Transport Plan Initiative and the associated tax benefits of the scheme.
- HubEx use our industry experience and trade contacts to get you riding to work on a bike of your choice from your local preferred participating bicycle shop.
Who is entitled to use HubEx?
Under the initiative, salaried employees who:<br> are employed and paying PAYE Tax in Ireland.
Why use HubEx?
- HubEx customers are not limited to any particular bike or accessory brands and therefore can choose the best for quality and value-for-money. This results in the optimum package of bike, accessories, and safety equipment.
- HubEx provide a single point of contact for employers and employees wishing to take up the scheme.
- HubEx will assist you in setting up and running a successful Cycle to Work scheme at no cost to the employer. We can help you to get a scheme going in no time, offering great customer service and access to all the leading bike brands. The result? Better scheme uptake, and a host of organisational and individual gains.
- HubEx is also fully supported nationwide and liaise with independent bike dealers providing up-to-date literature and point-of-sale material.
What support will HubEx offer to you when the scheme is running?
- HubEx will offer full support for handling your queries, and advice on choice of bike and safety equipment.
- HubEx partners (the cycle shops in your area who are partnering with HubEx will be your local port of call for test riding etc.
- Once the bike package is purchased these local bike shops will also handle servicing and any warranty issues.