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 installments from their gross salary.You are not liable for tax, PRSI or Universal Social Charge on your repayments.
Your employer does not have to take part in the scheme. However if they do, they must offer it to all their employees. If you are self-employed you are not entitled to avail of the Bike to Work Scheme unless you pay PRSI as an employee in addition to your self-employed work.
How do I save money on the Bike to Work Scheme?
As an employee you save on the costs of cycling to work because your repayments come out of your salary before tax, USC and PRSI are deducted. This means that someone on the highest rate of tax will save almost half of the cost of a new bike and equipment.
How much can I spend on the Bike to Work Scheme, and how often can I use it?
The exemption applies to the first €1,250 expenditure on bicycle and accessories. A higher exemption limit of €1,500 applies on an electric bike
The individual is be able to avail of the scheme once the four-year period.
What equipment does the Bike to Work Scheme cover?
The scheme covers the following items, which must be purchased as new (not secondhand):
- New bikes and tricycles
- New Electric bikes (electrically-assisted bikes that require some effort to propel)
- Cycle helmets
- Bells and horns
- Lights (including dynamo packs)
- Mudguards and skirt guards
- Cycle clips
- Panniers, luggage carriers and straps
- Locks and chains
- Puncture repair kits and cycle tool kits
- Reflective clothing
- Bike reflectors
The scheme does not include motorbikes, mopeds, scooters or electric-bike conversion kits.
How do I make a purchase using the Bike to Work Scheme?
Email us at firstname.lastname@example.org with the following information: (1) Your full name, phone number and delivery address (2) Your employers name, address (3) bike and accessories you wish to buy.
Receive back a quotation and hand it to your employer and ask them to arrange payment
Receive your bike and accessories.