Bike to Work Scheme – Explained
What is the Bike to Work Scheme?
The Bike to Work Scheme is a tax incentive scheme which aims to encourage employees to cycle to and from work. Under the 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 and USC on their repayments. The purchase of new safety equipment is also covered under the scheme.
How does it work?
The employer normally pays the supplier for the bicycle with the amount being deducted over the 12 month period, the arrangement cannot exceed the 12 month period. The employee can visit the shop, choose the equipment which they wish to buy and have the invoice sent directly to the employer. Payment can also be made directly by your employer on your behalf.
How much can you apply for?
The Bike to Work Scheme can only be availed of once in a five year period. The limit amount for the bicycle, safety equipment and delivery charge is €1,250 whereas the limit for an e-bike is €1500.
What is covered by the Cycle to Work Scheme
The bicycle and equipment should be used mainly for qualifying journeys for example from home to the train station or from home to place of work. This is not monitored by employers but they are asked to sign a statement to say that the bicycle is used for employees own use but will be mainly used for qualifying travel.
More information on the Bike to Work scheme is available from Revenue.
For other Travel Schemes and Allowances read:
Paycheck Plus, Your Outsourced Payroll Bureau
Paycheck Plus is an award-winning international payroll provider, serving businesses across Ireland and the UK with industry-leading accuracy levels, strict levels of confidentiality and top-rated payroll processes. We provide comprehensive, ISO accredited payroll services to organisations off all sizes.
Our highly experienced payroll processing experts can help you to navigate all aspects payroll processing including payroll consultancy, payroll audits, payroll reporting, payroll training, company set-up & wind-down, and special projects.