Cycle to Work Scheme

From the 1^st of January 2009 the Irish Government are introducing the new cycle to work scheme with the provision of bicycles and associated safety equipment by employers to their employees who agree to use the bicycles to cycle to work will be treated as a tax exempt benefit-in-kind. The exemption may only apply once in any five year period in respect of any employee. There will be a limit on the value of such purchases of €1,000 for each employee. The scheme may also be implemented via salary sacrifice arrangements, whereby an employee agrees to forego part of his/her salary to cover the costs associated with the purchase of the bicycle and associated safety equipment. Where such salary sacrifice arrangements are implemented, they must be completed over a maximum period of twelve months

How It Works

The maximum value on the total purchase of a bike and safety equipment is €1,000.00 for each employee. There are no limits to the kind of bike that can be purchased as a means of transport e.g. Mountain Bike, Road Racing Bike, Hybrid Bike, Folding Bike etc.

You can spend the full maximum €1000.00 on a bike of your choice or you can spend the purchase on a bike and safety equipment e.g. a set of lights, cycle helmet, reflective cycle clothing, reflective pannier bags, reflective laptop bike bag, cycling shoes and clip less pedals.

There is an exemption that may only apply once in any five year period in respect of any employee. The bicycle can be funded by either the employer or through salary sacrifice of the employee but it must be purchased by the employer. Where it is funded by salary sacrifice there will be savings on tax, PRSI and levies.

If an employee is on the top rate of tax and the full €1,000 is spent, a saving of €415.90 is made, possibly more if the employee is still below the PRSI cut-off point.

Employers will not be permitted to purchase bikes for their employees where they do not believe that they will be used for cycling to and from work by the employees in question. An Irish Vat receipt is needed showing that the bike and safety equipment were purchased in bike shops in the Republic of Ireland (not from bike shops or from mail order companies from the UK.)

Why Cycle to Work?

• Enjoy the health benefits of cycling to work - get fit, lose weight, feel healthier.
• Support a greener environment and reduce your carbon footprint.
• Save time travelling to and from work each day.
• No more time stuck waiting around in traffic jams.
• Save money on your commuting costs (Petrol or Diesel).
• Put your saved commuting costs into a holiday fund!
• Make your salary go further each month & save money.

Benefits to Employers

• Zero cost to employers on the purchases of bikes and safety equipment.
• Bikes and the safety equipment can be treated as a business asset.
• We supply a VAT invoice for each employer to recover 21.5% VAT.
• The bike and the safety equipment remain property of the employer until the 5 year term is over, encouraging your staff long term loyalty to your business.
• The bike and safety equipment can be sold off at the end of the 5 year scheme to your employee at agreed price e.g. 5% of it value or sold off at market value.
• Save the cost on employee car park spaces and new tax penalties on parking spaces.
• Show the public that your business supports new ideas for a greener environment.
• Help your staff get to work more reliably and not get stuck in traffic jams everyday.
• Employers benefit from a healthier, happier and fitter workforce.

Why buy your Cycle to Work bike with us?

We will be offering you a one stop shop for all your cycling to work needs such as helpful advice explaining how the new cycle to work scheme works and what is the best type of bike to suit your own personal cycling needs. We will be stocking a wide range of cycling clothing, accessories, shoes, pedals, cycling safety equipment and light sets. Our service centre offers fast same day bike repairs and servicing (saving you time and money).

• We can offer you a wide range of makes and models of bikes.
• We can supply you with a custom built bike for your cycle to work needs.
• We will supply you with a VAT invoice for your employers records.
• We can offer you a local shop for backup and support on repairs and servicing.
• We offer a replacement bike free while your bike is been repaired or serviced.
• You will receive 3 free bike services worth €75.00 in the 1st year.
• You get one free service for each year of the 5 year cycle to work scheme.
• You will get 10% off all your bike repairs and servicing for the next 5 years.
• Get 10% off all cycling accessories, clothing, and parts (any time).
• You will receive a €100.00 gift voucher FREE from our shop (when you collect your new Cycle to Work bike)

For more information, click here to download the Revenue Guidance Document on the bike Tax exemption scheme. This document is in PDF format and will describe the scheme in more detail. See the Revenue website for more information.