Last November, we explored some of the options available to company proprietors when deciding the future of their businesses, with a particular focus on liquidation. In this issue, we are now going to touch on some considerations regarding the going concern of a business and when business owners need to take a pragmatic view of how their business is performing. Not every business is going to be a success but the best business people find this out fast and understand it is not a reflection on them – instead of being emotionally attached, they take a clinical overview and move on to new business avenues and prove their success that way.
The Revenue Commissioners have increased the allowance for the cycle to work scheme. From the 1 August 2020 the allowance for a traditional bike is increased to €1,250. The allowance for an electric bike is now €1,500. The exemption does not apply to motorbikes, scooters or mopeds. Where the cost of the bike or electric bike exceeds the allowance tax must be applied to the balance exceeding the limit.
An employer can choose to give the bike to the employee. Alternatively, if an employee wants a bike but the employer doesn’t want to incur the cost, the employer can allow the employee to write the cost of the bike off against their gross salary. For example, the bike and safety equipment cost €750, the employees gross monthly salary is €3,000. The employer buys the bike and equipment and reduces the employee’s gross monthly salary to €2,250. The employer has incurred no extra cost while the employee gets the same salary when you take into account the bike but is only taxed on the €2,250.
Have a read through the guide the Revenue have produced which you can find here.