Cycleplus

greystones

  • TEL : 01-2871504
  • EMAIL : STEVEN@Cycleplus.IE
  • Cycle to Work Scheme

    What is the cycle to Work Scheme?

    The Cycle to Work Scheme is a Government tax relief initiative which allows Employers to buy bikes and accessories up to €1000 tax-free for their Employees and deduct the net cost from their Employees' salaries over 1 to 12 months. The benefit is not subject to Benefit-in-Kind Tax.


    Further Details are available at:

    What can you buy?

    Employees can spend up to €1000 on a bicycle and accessories and save up to 52% at the top tax rate.

    The accessories covered include: cycle helmets, bells, horns, lights, mirrors, mud guards, reflective clothing, panniers, luggage carriers and straps. Also covered are locks and chains, pumps, puncture repair kits and cycle toolkits.

    Benefits to Employers

    How Does It work?

    Selecting the right bike.

    Employee Savings with Bike to Work

    Example savings*
    Higher rate taxpayer: 40% Tax + 7% PRSI + 4% Levies = 51%
    Cost of bike and accessories €250 €500 €750 €1000
    Tax relief saving 51% 51% 51% 51%
    Tax relief saving €128 €255 €383 €510
    Net Cost €123 €245 €368 €490
    Cost split over 12 months €10 €20 €30 €40
    Example savings*
    Basic rate taxpayer: 20% Tax + 7% PRSI + 4% Levies = 31%
    Cost of bike and accessories €250 €500 €750 €1000
    Tax relief saving 31% 31% 31% 31%
    Tax relief saving €78 €155 €233 €310
    Net Cost €173 €345 €518 €690
    Cost split over 12 months €14 €29 €43 €58

    *Actual savings will depend on each individuals personal circumstances. Above is a typical example of savings possible as both a Basic Rate taxpayer (20%) and a Higher Rate taxpayer (40%).

    Note that Public Sector Employees additionally save the Pension Levy.