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 and 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. In July 2020 the Government announced some significant changes to the scheme which means employees can avail of the scheme every 4 years and spend up €1250 on a bike plus accessories or €1500 on electric bikes.
Why buy a bike in the Cycle to Work Scheme
Employer Benefits of the Cycle to Work Scheme