Cycle to Work Scheme


How the scheme works.


1️⃣ Ask your employer to add
you to the scheme.

2️⃣ Choose your bike.

3️⃣ We invoice your employer.

Collect your bike when we receive payment.

🏁 🚴




If you do not qualify for the Cycle to work scheme,
we have finance available.

Bike by month


The Cycle to Work Scheme is a tax incentive scheme which aims to encourage employees to cycle to and from work.
Under the scheme employers can pay for bicycles and bicycle equipment for their employees.

The employee pays back through a salary sacrifice arrangement of up to 12 months.
The employee is not liable for tax, PRSI or the Universal Social Charge on their repayments.


Rules

What equipment does the scheme apply to?
The scheme applies to new bicycles,
electric bikes of the pedal assist type also called ebikes or pedelecs
(electrically assisted bicycles which require some effort from the cyclist).
It does not cover motorbikes, scooters or mopeds.

Purchase of the following safety equipment is also covered:


High Visibility and Reflective clothing
including
Jackets,Vests and High Visibility Rainwear.

Extra reflectors and spoke reflectors.

Cycle helmets which conform to European standard EN 1078


Bells and bulb horns.


🔆 Lights, including dynamos. 🔆

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 for minor repairs.



How do I pay for the bike ? 🚴

Your employer pays us for the bicycle and sets up a salary sacrifice arrangement
from your salary over an agreed time frame (Maximum 12 months).
Note that the tax exemption does not apply
if you pay for the bicycle and are reimbursed by your employer.

They must pay for the bicycle.

The repayment for the bicycle and equipment
is then deducted from your gross salary (this means before income tax, PRSI, pension levies or
Universal Social Charge are deducted).

Deductions can be made
weekly, fortnightly or monthly,
depending on your salary payment arrangement.

Your employer can also buy the bicycle
on your behalf and not require you to pay for it.
In this instance, you will be exempt from benefit-in-kind taxation
to a cost of €1,000. If the cost of the bicycle exceeds this amount
a benefit-in-kind charge will apply to the balance.



How often can I use the scheme?

You can only avail of the scheme once in a five-year period.
This applies even if you do not purchase equipment up to the €1,000 limit.
The tax year in which the bicycle or equipment is provided counts as the first year.
So, if you use the scheme in 2020 (regardless of the month)
you would be entitled to the relief again during 2025 (from January).

Qualifying Journeys.

You must use the bicycle and safety equipment mainly for qualifying journeys.
This means the whole or part
(for example between home and Luas,bus or train station)
of a journey between your home and your normal place of work.
Employers do not have to monitor this but
you will be asked to sign a statement saying that
the bicycle is for your own use
and will be mainly used for qualifying journeys.

Rates
There is a limit of €1,000
on the amount that can be spent
(this includes bicycles, safety equipment and delivery charges).
If you spend more than this limit
you are liable for
benefit-in-kind income tax charge


You can find out more about the scheme on
the Revenue Commissioner’s website.


Please note that this guide was written to
help you to better understand the Cycle to Work Scheme
and as such is only a guide.
We accept no liability for errors or omissions in this information.
Please check the relevant
Government Site for the exact details of the scheme.



Email us here

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085 - 805-7894


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© Citizens Information & MacDonald Cycles 2020