WHAT IS THE BIKE TO WORK SCHEME?
The bike-to-work scheme is a scheme that allows employers to provide an employee with a bicycle and/or cycle safety equipment without the employee being liable for the benefit in kind taxation. Below, we will answer some of the most common questions you might be thinking of around the process.
HOW DOES THE BIKE TO WORK SCHEME WORK?
As stated above, the bike to work scheme, also known as the cycle to work scheme, is a tax benefit scheme utilised by employees of companies in Ireland. The main idea is to incentivise their employees to bike to work. Under this bike-to-work scheme, employers pay for the new bicycle purchased by employees (including bike accessories). The scheme may also be implemented under a salary sacrifice arrangement through the employee’s payroll (in a similar manner to the existing Travel Pass Scheme). Under such agreement, the employer provides the bicycle and/or safety equipment to the employee who agrees to forego or sacrifice part of his or her salary every pay period (weekly/fortnightly/monthly as the case may be), in order to cover to cost of the benefit. Also, you are not liable for any PRSI, tax or universal social charge on your bike repayments
Under this bike to work scheme, employers will pay for the employees' bikes, and then the employees repay the bike cost in small monthly payments deducted from their savings. The process of claiming a bike under this scheme is simple.
- The workplace registers for the bike to work scheme
- Employees select the bike and accessories that they want
- The employer pays for the bike
- Employees pay their employer the funds back through regular instalments collected through payroll.
Also, note that there are two limits on the bike equipment received from this scheme. For e-bikes or pedelecs safety gear, the specified limit is €1,500, and for other bicycles related safety gear, the prescribed limit is €1,250.
QUICK FACTS ON THE BIKE TO WORK SCHEME:
Below are some facts on the bike to work scheme.
- Save up to 51% off the price of a bike and equipment.
- Spending limits are €1,250 for regular bikes and €1,500 for electric bikes.
- Accessories and clothing can be included under the amounts above.
- ThinkBike accept all forms of payment whether Voucher, Direct Payment, or up front payment - we'll look after and make the whole process easy for you.
- We'll provide free delivery of your bike and all bikes come with 1 YEAR FREE SERVICE
Find
more information on the bike to work scheme online so you know the
entire process and rules around it.
WHAT BIKES AND BIKING GEAR CAN BE INCLUDED IN THE SCHEME?
Standard and electronic bikes are principally included in this scheme. However, this scheme does not cover scooters, motorcycles or mopeds. Accessories are also included in this bike to work scheme which can include the following:
- Bike helmets
- Bulb horns and bells
- Lights Front & Rear
- Mudguards and mirrors
- Chains and locks
- Cycle tool kits and puncture repair kits
- Carrier Racks, Pannier bags and Child seats
- Clothing eg Waterproof Hi Viz Jackets and Over Trousers
CYCLE TO WORK SCHEME CONDITIONS
The employer must purchase the bicycle and/or safety equipment.
The tax-exempt benefit-in-kind for the bicycle and safety equipment will only apply where the employee agrees to use the bicycle to cycle to and from work or between workplaces.Under any salary sacrifice arrangement, the cost of the bicycle and/or safety equipment must be paid within 12 months.
NEXT STEPS
Interested in availing of the bike to work scheme? We can help you and it's very straightforward, contact us today to get the ball rolling.