Bike To Work

A Totally Free service to employers to take advantage of the government tax-free bike initiative

The Cycle to Work Scheme in Ireland is a government initiative aimed at encouraging employees to cycle to work by offering tax incentives for the purchase of bicycles and cycling equipment. Here’s how it generally works:

  • Employee Participation: Employees who wish to participate in the Cycle to Work Scheme can approach their employer to express interest.

  • Employer Enrollment: The employer must be registered for the Cycle to Work Scheme with the Revenue Commissioners in Ireland.

  • Agreement: Once the employer is enrolled, they enter into an agreement with the employee to provide a bicycle and/or cycling equipment as a benefit under the scheme.

  • Salary Sacrifice: The cost of the bicycle and/or equipment is deducted from the employee’s gross salary over a specified period, typically up to 12 months. This deduction is made before income tax, PRSI (Pay Related Social Insurance), and USC (Universal Social Charge) are applied, resulting in potential savings for the employee.

  • Purchase: The employer purchases the bicycle and/or equipment on behalf of the employee from a registered retailer.

  • Usage: The bicycle and/or equipment must be used primarily for qualifying journeys, such as travel between the employee’s home and workplace.

  • Ownership: While the employer technically owns the bicycle and/or equipment during the salary sacrifice period, it is intended for the employee’s personal use.

  • End of Scheme: Once the agreed salary sacrifice period ends, the ownership of the bicycle and/or equipment typically transfers to the employee.

The Cycle to Work Scheme aims to promote healthier lifestyles, reduce traffic congestion, and lower carbon emissions by incentivizing cycling as a means of commuting. It provides a financial benefit to employees while also benefiting employers through potential reductions in employer PRSI contributions.

It’s important to note that specific details and eligibility criteria may vary, and it’s advisable for both employers and employees to familiarize themselves with the latest guidelines provided by the Revenue Commissioners in Ireland.