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
- Save up to 51% off the price of the bike up to €1250 (or €1500 on electric bikes) depending on which tax bracket you fall under.
- The tax saving applies to all bikes, electric bikes and accessories.
- Save on monthly fuel, parking, and public transport costs.
- Get Fit – enjoy the health benefits of cycling to work.
- Beat the traffic; cycling is twice as fast as a car in commuter traffic.
Employer Benefits of the Cycle to Work Scheme
- Improving staff fitness, health and morale.
- A healthier, fitter workforce means better performance at work and
fewer sick days being taken. Alongside walking and swimming, cycling is
widely recognised as one of the most accessible forms of physical
exercise for all ages. It has been shown people who cycle regularly will
have an improved quality of life as it provides the cardiovascular
exercise needed for a healthy heart.
- Enhancing your Company's Environmental Image.
- Cycling-To-Work reduces carbon pollution and traffic congestion on
the surrounding areas. These points demonstrate beyond doubt that you
are an employer who has a clear sense of social responsibility for both
your staff and your customers.
- Save on PRSI Payments