Cycling has become one of the biggest growing trends in Ireland when it comes to commuting to and from work and also exercising.
It is a prime example of how well an incentive scheme can work, as the bike to work scheme has transformed cycling in Ireland.
As we all know, cycling is a great form of exercise and by cycling to work, you'll make sure you stay active and get good exercise every day without using up any more of your valuable time.
The bike to work initiative gives you the opportunity to sacrifice part of your salary in return for a bicycle and/or accessories. Under the scheme you don’t pay income tax, PRSI or Universal Social Charge of the price of the bicycle and/or accessories so you can save between 31% and 52% on the normal price (depending on your marginal tax rate).
Participating in the bike to work scheme couldn't be easier;
The employer simply pays for the bike and equipment up to the value of €1,000, and off you go. Your Employer will inform you how the payment will work exactly, whether they buy the bike outright or it operates under a "salary sacrifice" arrangement, but either way you save on tax! Simply set up an Allowable Deduction on Thesaurus Payroll Manager / Bright Pay to accommodate for the salary sacrifice.
The scheme is flexible in so far as your employer doesn't have to specifically notify the Revenue Commissioners that you're availing of the scheme and there are no Government forms to fill out. However, your employer does have to maintain the normal records such as invoices and payment details associated with buying the bike.
Introduced on 1st January 2009, this tax incentive scheme was designed to encourage more people to get on their bikes and cycle to work. And given the obvious rise of the number of cyclists on our roads, it’s easy to see that this incentive is definitely working.
You can find out more at http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/faqs/cycle-work.html#cycle1
In January 2013, we launched our new payroll software, BrightPay. The rollout of BrightPay was met with a very positive response, particularly from those users who switched to avail of its added functionality.
We understand the comfort of sticking with what you know. Therefore we will continue to offer Thesaurus Payroll Manager for the foreseeable future – it is not being phased out!
BrightPay is built using modern technology, offering some immediate benefits:
We encourage you to download BrightPay and have a look. If you wish to switch from Thesaurus Payroll Manager to BrightPay we would advise doing so at the start of a tax year, as it allows for an easier transition (with full import support) than a mid-year switch.
Remember if you hold a Thesaurus Payroll Manager licence you can avail of a BrightPay licence for the same tax year free of charge.
If you are paying any of your employees (or suppliers) in sterling or another non-euro currency, then you are probably experiencing higher banking fees and less competitive exchange rates than you should be. This is an area where you can reduce costs if you investigate alternative options to the conventional bank plus gain time with faster transfer options.
One alternative provider to your bank is TransferMate, who offer an impressive fast, efficient and cost effective service. We have been highly impressed with their service. Estimate the savings you can make by using their “savings calculator” at www.transfermate.com.
We told you in December how, much to our delight, we had been shortlisted as a finalist in the 2013 SFA Awards, “Innovator of the Year” category directly resulting from our innovation in software development. This was in no small part attributable to our new dynamic software, BrightPay and Bright Contracts.
The final winner of the category was Megazyme, who were also announced as the overall winner of the awards.
Megazyme is a biotechnology company which employs 34 people and is involved in the development of analytical test kits and reagents for the agricultural, food, wine, dairy and biotechnology industries.
We extend our congratulations and good wishes for their continued success.
We are constantly working towards improving the entire customer experience from customer support to improved functionality of the software. We would like to thank you for the time taken to complete our online survey and we will use your feedback to improve our service to you.
An iPad mini was up for grabs for taking part and the winner of this was Margaret Sullivan of Shellfish De La Mer Ltd.
From April 2013, the UK has experienced a major change in the way employers report PAYE to HMRC. Employers now report their payroll information to HMRC in real time, on or before every payday. This is akin to a P35 being submitted weekly, fortnightly or monthly by UK employers .
Having such up to date information means that HMRC can issue accurate and timely instructions to employers thereby ensuring that an employee’s tax position at any time is correct i.e. there are less under or overpayments of tax. It will also help ensure the success of the new universal credit system whereby six working-age benefits will be merged into one.
There has been a number of teething problems with the new system, which is only to be expected given the scale of the change but various actions taken by HMRC prior to the live date have ensured that the transition has gone relatively smoothly. These actions included a pilot program, consultations with employer groups, consultations with software companies, various workshops and an overall general helpfulness on the part of the relevant HMRC staff.
It is understood that the Irish Revenue is a very interested spectator!
The latest version of Thesaurus Payroll Manager (2013.2.0 onwards) allows you to prepare SEPA compliant credit transfer files if you bank with AIB or DanskeBank.
From a payroll prospective, it is important to note that, at present, SEPA is really only beneficial to you if any of your employees wish to have their wages paid directly into a euro bank account in another EU state. Otherwise, the only benefit to you is being an early adopter and knowing that this is one less thing you will need to do next year.
If your bank requires a SEPA format credit transfer file for the payment of wages then you can use the SEPA feature within Thesaurus Payroll. This operates seamlessly, converting each employees bank details into BIC and IBAN formats for all domestic payments. In short, you need only obtain BIC and IBAN details for those employees who require payment into a euro bank account in another EU state.
LPT deductions at source (i.e. from payroll) became effective from 1st July 2013. The LPT deduction is advised to the employer by Revenue only and should not be implemented or amended under any other circumstances (e.g. by employee request).
The “Acorn to Oak Communications Plc -v- An Taoiseach, An Tánaiste and 48 Others” case was heard in the High Court last week and the case was dismissed. As far as we are aware, this ends the last legal challenge to the new tax.
Revenue will advise employers to make this deduction by the inclusion of an LPT field on the employee’s tax credit certificate issued to the employer (P2C). The deduction is only made in the circumstance that the employee has elected with Revenue to have the tax deducted from their salary or if Revenue are imposing the deduction, therefore employers will only make the deduction from some employees if not all.
Employers should not deviate from Revenue instructions. All employee queries relating to any LPT deduction or amendment should be directed to Revenue.
The latest versions of Thesaurus Payroll Manager (2013.2.0 upwards) automatically update employee records to implement LPT deductions, where applicable, once the latest P2Cs have been imported. All employee statements of earnings; Payslips, email payslips, P45, P60, will reflect LPT deductions made by employers on the employees behalf.
It is important that employers import the latest P2C file available to them from their ROS account in order to update employee details for such amendments.
EMPLOYERS DID YOU KNOW YOU CAN PROVIDE YOUR EMPLOYEES WITH A SMALL BENEFIT TAX FREE?
Revenue Commissioner’s Approved Small Benefit Exemption Scheme:
Employers can provide employees with a small benefit (that is a benefit not exceeding €250); this small benefit is not subject to PAYE, USC or PRSI.
The following rules apply:
The small benefit is traditionally given as a voucher, as mentioned above only one such benefit can be given to an employee in one tax year. If for example an employee receives a €150 voucher in January and a €100 voucher in June only the €150 January voucher will qualify for exemption and the €100 voucher given in June will be subject to PAYE, USC & PRSI.
Where a benefit exceeds the value of €250 the full value is subject to PAYE, USC & PRSI. For example if a €260 voucher is given to an employee the full value should be included on payroll as a benefit in kind and therefore subjected to PAYE, USC & PRSI.
Any changes to the scheme will be included in the help file within Thesaurus Payroll Manager and also on the online BrightPay help file http://www.brightpay.ie/docs/2013/benefit-in-kind/one-off-benefits/