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.
Your employer does not have to take part in the scheme. However if they do, they must offer it to all their employees. Self-employed people are not eligible for the scheme (unless they are paying PRSI as an employee in addition to their self-employment).
What equipment does the scheme apply to?
The scheme applies to new bicycles and pedelecs (electrically assisted bicycles which require some effort from the cyclist). It does not cover motorbikes, scooters or mopeds.
Purchase of the following new safety equipment is also covered:
- Cycle helmets which conform to European standard EN 1078
- Bells and bulb horns
- Lights, including dynamo packs
- Mirrors and mudguards to ensure that the rider’s visibility is not impaired
- 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
About the Cycle to Work Scheme
Are you aware that you can save up to 51% off the price of a new bicycle & accessories up to a maximum cost of €1,000 under a Government Cycle to Work Scheme?
Introduced on 1st January 2009, this tax incentive scheme is designed to encourage more people to get on their bikes and cycle to work!
How to participate?
Once your employer decides to take part, they simply pay for the bike and equipment of your choice on your behalf, and off you go. Your Employer will inform you how the payment will work exactly, whether they buy the bike outright or it operates under a "salary sacrifice" arrangement, but either way you save on Tax!
It is quick & easy to participate in the scheme. There are no Government forms to fill out. However, your employer does have to maintain the normal records such as invoices and payment details associated with buying the bike.
Save up to 51% on Bikes & Accessories
Employees make a saving of between 31% - 51% depending on tax rate, making it easily the cheapest way to buy a bike.
5 Year eligibility
If you availed of the Cycle to Work scheme in 2012 or earlier you are eligible to re-apply for the scheme, no matter what month your original application was made.
Using the Cycle to Work scheme, your company can purchase new bike & accessories worth up to €1,000 Tax Free, for your employees.
You can use a salary payback arrangement to allow your employees to pay for the bike over an agreed amount of time up to 12 months. This means that the employees saves between 31% - 51% (depending on tax rate) of the retail price of bike & accessories but your company also makes a PRSI saving of 10.75%.
Why choose Base2Race?
You will be safe in the knowledge that your employees will receive professional and sound advice from experienced cyclists/athletes.
We are more than happy to organise presentations for your employees, to explain the benefits of the scheme and demonstrate the types of bikes & accessories that can be availed of under the scheme.
Cycle 2 Work with B2R in 3 easy steps:
- Call in and discuss your needs with an experienced member of staff, who will generate a quotation for you.
- Pass on your quotation to your employer for payment to be arranged.
- Collect your bike & accessories in store and avail of our FREE bike fitting service to all purchasers of new bikes in B2R.