Cycle to work scheme is Ireland government’s initiative to encourage people to ride to work by offering tax-efficient ways to purchase bikes and cycling accessories.
The Cycle to Work Scheme is a tax incentive scheme which aims to encourage employees to cycle to and from work. It was introduced in 2008 by the Government .Under the Cycle To Work scheme employers can pay for bicycles and bicycle equipment for their employees and the employee pays back through a salary sacrifice arrangement of up to 12 months. The employee is not liable for tax, PRSI or the Universal Social Charge on their repayments.
A program designed to encourage employees to commute to work using environmentally friendly modes of transportation, such as cycling or walking. It provides incentives or benefits to employees who choose these active modes of transportation, promoting a healthier lifestyle.
cycle to work scheme ireland 2024
Your employer does not have to take part in the scheme. However if they do, they must offer it to all their employees. Self-employed people are not eligible for the government cycle to work scheme (unless they are paying PRSI as an employee in addition to their self-employment).
Cycle to Work Scheme Ireland Benefits
The Cycle To Work Scheme Ireland applies to new bicycles and pedelecs (electrically assisted bicycles which require some effort from the cyclist). It does not cover motorbikes, scooters or mopeds.
Purchase of the following new safety equipment is also covered:
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.
You can only avail of the government cycle to work scheme once in a four-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).
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.
There is a limit of €1,000 on the amount that can be spent (this includes bicycles, safety equipment and delivery charges). If you spend more than this limit you are liable for a benefit-in-kind income tax charge.You can find out more about the scheme on the Revenue Commissioner’s website.
Contact your employer to ask about employee benefits government cycle to work scheme.
There are several reasons why you should choose The Cycle Centre in Dundalk, Ireland:
1. Experienced Staff: The Cycle Centre has a team of experienced and knowledgeable staff who are passionate about all things cycling. They can offer expert advice and guidance on choosing the right bike for your needs.
2. Wide Range of Bikes: The Cycle Centre offers a wide range of bikes from top brands such as Giant, Cube, and Liv. Whether you’re a casual rider or a competitive racer, they have a bike to suit your needs.
3. Quality Service: The Cycle Centre provides a high level of service to their customers, including bike fitting, servicing, and repairs. Their skilled mechanics can ensure that your bike is in top condition for a smooth and enjoyable ride.
4. Competitive Prices: The Cycle Centre offers competitive prices on their bikes and services, making it a great choice for cyclists on a budget.
5. Local Community: The Cycle Centre is a local, independent bike shop that is actively involved in the cycling community in Dundalk. By supporting them, you are supporting local businesses and helping to grow the cycling community in the area.
Overall, The Cycle Centre is a great choice for anyone looking for high-quality bikes, expert advice, and excellent service in Dundalk, Ireland.
The Cycle to Work scheme offers several benefits, including cost savings, improved health, reduced carbon emissions, and reduced traffic congestion.
It’s important to note that specific details and eligibility criteria for the scheme may vary depending on the country and employer. Therefore, it’s advisable to check with your employer or government website for precise information related to your situation.
About the Scheme
The Cycle to Work Scheme in Ireland is an initiative that encourages employees to choose a healthier, more active lifestyle while also reducing their carbon footprint by purchasing bicycles and related equipment through their employers. The government-backed scheme permits employers to provide their employees with tax-free bicycles and accessories worth up to €1,040 every 4 years.
This includes bicycles, safety equipment, and accessories. Employees pay for the benefits through salaries over a period of 12 months, typically deducted through their payroll in equal installments.
HOW MUCH CAN I SPEND ON A BIKE AND ACCESSORIES THROUGH THE SCHEME?
