Cycle to work scheme
The massively successful “cycle to work” scheme has been in operation since 1st January 2009. This is a government tax incentive aimed at getting people out of their cars and onto bikes for their daily commutes.
For full details on the scheme, follow this link:
Put more simply, the cycle to work scheme works as follows:
- The employer can purchase a bike along with safety accessories for their employee without the employee being liable for benifit-in-kind tax.
- Typically the employee will repay the employer with a salary sacrifice over the following 12 months.
- The value of the bike plus accessories is limited to €1000
- Bikes will be owned by the employee
- The cycle to work scheme can only be availed of once every five years
- The employer will be exempt from paying the PRSI on the value of the bike/accessories
- The employer cannot claim the VAT on the purchase
- Typical savings are up to 51%
Cycling accessories which are eligible for the cycle to work scheme include the following:
- Bicycle helmets conforming to european standard EN1078
- Bicycle lights
- Pumps, puncture repair kits, tool kits etc.
- Reflective clothing and cycle clothing.
- Cycle clips, bells etc.
For any further information about how you can benifit from the cycle to work scheme, contact the staff in the shop directly and they will be happy to help you.