Bike To Work Scheme Ireland
Hi, welcome to Fairyhousemotors.com thank you for visiting our website, no doubt you are interested in finding out relevant information about the bike to work scheme which is currently in operation here in the republic of Ireland.
Firstly there is a limit of €1000 on the amount that can be spent (this includes bicycles, safety equipment and delivery charges). I want to let you know that you can get a very good quality bicycle with all the safety equipment for €1,000 here at Fairyhousemotors.com. We invite you to come to our showrooms at Fairyhouse Motors on the Fairyhouse Road just outside Ratoath in County Meath. We are only 16 miles from O’Connell street in Dublin. We have a large selection of bicycles from Racing Bikes, Mountain Bikes, Hybrid bikes, and all the essential safety equipment. We will give you the best deal and quality bicycle of your choice in Ireland.
The information Below Explains The Bike To Work Scheme Ireland Details
The Bike 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, levies or the Universal Social Charge on their repayments.
Your employer does not have to take part in the cycle to work scheme. However if they do, they must offer it to all their employees.
Rules of Bike To Work Scheme Ireland.
The cycle to work 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.
What equipment does the scheme apply to?
Purchase of the following new safety equipment is also covered by the cycle to work scheme.
- 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
How Do You Pay For The Bike To Work Scheme?
Usually your employer pays the supplier for the bicycle and sets up a ‘salary sacrifice’ arrangement from your salary over an agreed time frame (which cannot be more than 12 months). This generally means that you visit the shop, select the equipment you wish to buy and have the shop invoice your employer directly for the cost. 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). These 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.
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.
Qualifying journeys for the bike to work scheme.
You must use the bicycle and safety equipment mainly for qualifying journeys. This means the whole or part (for example between home and 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.
Contact Us Now 01-8256282
Information source: Citizens Information
Addotional Information. : Revenue Commissioners