Cycle to Work Scheme
Top tips on how it works
Cycle to Work scheme was introduced back in 2009 as an incentive to support cycling as a mode for commuting into 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 the gross salary over one year. You are not liable for the employment taxes, PAYE, PRSI or USC on your repayments.
What is the purpose of the Cycle To Work scheme?
The purpose of the scheme is to encourage more employees to cycle to and from work, or between work places, thereby contributing to lowering carbon emissions, reducing traffic congestion and improving health and fitness levels.
Is there any limit on the price of the bike I can obtain?
Recent changes in the scheme allow people now to claim up to €1,250 on a normal bike and €1,500 on an e-bike. Waiting time for the scheme has also been reduced, with people only having to wait every four years to avail of the scheme. A customer can pick a bike more expensive than the above limits, paying the difference on collection of the bike.
Who is the scheme open to?
Any working adult that pays PRSI can avail of the scheme. However, please check with your employer to see if you are eligible for the scheme. Employers are not obliged to offer the scheme and some employers may only operate it at certain times of the year.
What can I claim?
You can claim €1,250 on a normal bike and €1,500 if it’s an e-bike.
Accessories can include helmets, clothing, lights, panniers, locks, pumps, puncture repair kits, mirrors and mudguards.
Items that cannot be purchased include.
· Motorbikes, scooters, or mopeds
· Second hand bicycles or equipment
· Bicycle parts or associated equipment
How do I save money?
Your employer will buy the bike for you, and you will enter an agreement with them on how you pay the money back. You will save money as your repayments will come out of your salary before the employment taxes, PAYE, USC and PRSI are deducted.
How do I avail of the scheme?
After being told you are eligible for the scheme, first thing you need to do is head to your bike store to pick your bike and accessories. After picking your bike, a member of our sales team will provide you with a Cycle to Work quotation which you will then submit to your HR department. Your employer will then process your claim and make a payment to the bike shop. Once payment is made, you will receive notification that your bike is ready for collection.
The easiest way for a company to pay for the bike is to deal directly with the bike shop either by EFT, Card, or cheque. By dealing directly with the shop, your employees will enjoy all the benefits of being a cash customer. Some of the bigger companies use a third party (voucher company) to administer the scheme, however, these companies get paid by deducting a commission from the Bike Shop thus negating the cash benefits above.
