Cycle to Work Scheme
What is the purpose of the cycle to work scheme?
The purpose of the scheme is to encourage more employees to cycle to work or between workplaces, thereby contributing to lowering carbon emissions, reducing traffic congestion and improving health and fitness levels.
How much do I save?
As an employee you save on the costs of cycling to work because your repayments come out of your salary before tax, USC and PRSI are deducted. This means that someone on the highest rate of tax will save almost half of the cost of a new bike and equipment.
Depending on the type of eBike you bought. The limit (including related safety equipment) is:
- €3000 for eCargo bikes
- €1500 for eBikes
Of course you can pay for any excess yourself. For example, eCargo costing €6000 will be eligible for €3000 and the balance is due to be paid directly by you.
Note: to expedite delivery of your new eBike or eCargo bike we currently take full amount deposits and any difference will be refunded upon full payment to us by your Employer.
How do I pay for the bicycle?
Usually, to avail of the cycle-to-work scheme, 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 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 to us
Note: to expedite delivery of your new eBike or eCargo bike we currently take full amount deposits.
The repayment for the bicycle and equipment is then deducted from your gross salary (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.
How often can I use the cycle to work scheme?
You can only avail of the bike to work scheme once in a four-year period. This applies even if you do not purchase equipment up to the €3000 limit. The tax year in which the bicycle or equipment is provided counts as the first year.
You must use the bicycle and safety equipment mainly for qualifying journeys. This means the whole or part (for example, between home and train station) of a journey between your home and your normal place of work. Employers do not have to monitor this, but you will be asked to sign a statement saying that the bicycle is for your own use and will be mainly used for qualifying journeys.
If you would like to learn more about the scheme. Visit the Revenue Information website here.
Some of the benefits of the cycle-to-work scheme
- Save up to 52% off your ebike
- Make your salary go further each month
- Improve your overall health and fitness
- Reduce your carbon footprint
- Avoid lengthy traffic jams & arrive on time
- Reduce your journey time by beating the traffic
- Free from road Tax and insurance
- Save money on bus/train/luas fares as well as reduced fuel costs
- Lower your car use, lower your costs