The Cycle to Work Scheme (generally known as the Bike to Work Scheme) is a tax incentive scheme to encourage employees to cycle to work. Under the scheme an employer can pay for a new bicycle (including bicycle accessories) and the employee then repays the cost in regular instalments from their gross salary.
We'll answer some of the most frequently asked questions below.
HOW DOES THE BIKE-TO-WORK SCHEME WORK?
As stated above, the bike-to-work scheme, also known as the cycle-to-work scheme, is a tax benefit scheme utilized by employees of companies in Ireland.
The main idea is to incentivize their employees to bike to work. Under this bike-to-work scheme, employers pay for the new bicycle purchased by employees (including bike accessories).
The scheme may also be implemented under a salary sacrifice arrangement through the employee’s payroll (in a similar manner to the existing Travel Pass Scheme). Under such agreement, the employer provides the bicycle and/or safety equipment to the employee who agrees to forego or sacrifice part of his or her salary every pay period (weekly/fortnightly/monthly as the case may be), in order to cover to cost of the benefit. Also, you are not liable for any PRSI, tax or universal social charge on your bike repayments
Under this bike-to-work scheme, employers will pay for the employees' bikes, and then the employees repay the bike cost in small monthly payments deducted from their savings. The process of claiming a bike under this scheme is simple.
*The workplace registers for the bike-to-work scheme
*Employees select the bike and accessories that they want
*The employer pays for the bike
*Employees pay their employer the funds back through regular installments collected through payroll.
Also, note that there are two limits on the bike equipment received from this scheme. For e-bikes or pedelecs safety gear, the specified limit is €1,500, and for other bicycles related safety gear, the prescribed limit is €1,250..
Facts about the scheme
Save up to 51% off the price of a bike and equipment. Spending limits are €1,500 for electric bikes. We'll provide free delivery of your bike or you can choose your bike in person at one of our 2 showrooms in Navan and Crumlin.
All our eBikes come with 1 YEAR Irish based WARRENTY.
This scheme does not cover scooters, motorcycles or mopeds.
Accessories are also included in this bike to work scheme which can include the following which we only currenlty provide:
Smart helmets
Smart locks
High-visability clothing
You should ask your employer if they operate the scheme and check their requirements.
If you are a civil or public servant, the cycle shop must be on the suppliers list (pdf).
You can choose your bike and equipment on our site or book a viewing at one of our showrooms.
Here you can select the bike and equipment that you want to buy.
We'll create an invoice and send this to your employer.
Next, tell your employer of this choice. The employer will then pay us for the bike and equipment directly. It’s important to note that your employer cannot reimburse you if you make the payment.
Your employer then sets up salary deductions over an agreed time frame of up to 12 months to recoup the costs. These deductions can be made weekly, fortnightly or monthly depending on your salary arrangements.
NEXT STEPS
Interested in availing of the bike to work scheme? We can help you and it's very straightforward, contact us today to get the ball rolling.
