Using the Bike to Work scheme, your employer can help you obtain a brand new bike and safety equipment worth up to €1,000. You can use a salary sacrifice arrangement to pay for the bike monthly and that means you can save up to 51% of the retail price of bike and equipment. Your employer also makes savings to encourage them.
How it works?
- The scheme allows an employer to provide an employee with a bicycle and/or cycle safety equipment without the employee being liable for benefit-in-kind taxation.
- 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 an arrangement, 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 the cost of the benefit. The full cost must be recovered within a maximum period of twelve months and the salary sacrifice will be reflected in the employee’s pay over that period.
- Bikes will be owned by the employees.
- Limit on the value of such purchases is €1,000 for each employee
- The exemption may only apply once in any five year period in respect of any employee.
- If employee is on the top rate of tax and PRSI a 51% saving can be made
- The employer will also benefit in that employer’s PRSI is not payable on the cost of the bicycle and/or safety equipment.
Qualifying safety equipment
- Cycle helmets which conform to European standard EN 1078
- Bells and bulb horns
- Lights, including dynamo packs
- Mirrors and mudguards
- Cycle clips and dress guards
- Panniers, luggage carriers and straps to allow luggage to be safely carried
- Locks and chains to ensure cycle can be safely secured
- Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs
- Reflective clothing along with white front reflectors and spoke reflectors.