Save up to 52% with the CYCLE TO WORK SCHEME
You may purchase a new bicycle and safety equipment up to a maximum value of €1,000 per employee. The scheme can be applied once every five years.
The year of purchase is counted as the first year.
The scheme applies to new bicycles
Purchase of the following new safety equipment is also covered:
- Cycle helmets
- Bells and bull horns
- Mirrors and mudguards
- Cycle clips
- Locks and chains
- Puncture repair kits
- Cycle tool kits
- Tyre sealant to allow for minor repairs
- Reflective clothing
Usually your employer pays the supplier for the bicycle and sets up a ‘salary sacrifice’ arrangement from your salary over an agreed time frame (which cannot be more than 12 months). This generally means that you visit the shop, select the equipment you wish to buy and have the shop invoice your employer directly for the cost. Note that the tax exemption does not apply if you pay for the bicycle and are reimbursed by your employer – they must pay for the bicycle.
The repayment for the bicycle and equipment is then deducted from your gross salary (this means before income tax, PRSI, pension levies or Universal Social Charge are deducted). These deductions can be made weekly, fortnightly or monthly depending on your salary payment arrangement. Your employer can also buy the bicycle on your behalf and not require you to pay for it. In this instance, you will be exempt from benefit-in-kind taxation to a cost of €1,000. If the cost of the bicycle exceeds this amount a benefit-in-kind charge will apply to the balance.
How often can I use the scheme?
You can only avail of the scheme once in a five-year period. This applies even if you do not purchase equipment up to the €1,000 limit. The tax year in which the bicycle or equipment is provided counts as the first year. So, if you used the scheme in 2014 (regardless of the month) you would be entitled to the relief again during 2019 (from January).