08 April 2016 - News
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 or the Universal Social Charge on their repayments. The purchase of new safety equipment is also covered under the scheme.

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.

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 €1,000.

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 is available on the Revenue website.

For information and assistance on processing payroll for employees, call +353 (0)41 68 63 000 or Request a callback from our Payroll Team today.

PaycheckPlus – 10 years Making Payroll Easy!