If you availed of the Cycle to Work Scheme in 2013 or before it
then you are now eligible to use it again.
Call to us to discuss what savings you could make.
Cycle to Work Scheme Explained
The Cycle to Work Scheme is a tax incentive scheme which aims to encourage employees to cycle to and from work. The scheme began on 1st January 2009. Under the scheme, employers can purchase bikes and accessories valued up to €1,000 for their employees and the employee pays back through a salary sacrifice arrangement (usually over 12 months).
Employers do not have to take part in the scheme, however if they offer it to one then the scheme must be available to all staff.
Below we list some of the most frequently asked questions about the scheme. However if you have a query that's not covered here please do not hesitate to get in touch with us.
Q. As an employer why should I offer this Scheme to my staff? There are multiple benefits to a company for offering this scheme and encouraging staff to cycle.
You save 10.75% - Employer's PRSI is not payable on the cost of the bike or safety equipment so savings can be made by you too.
Improve your company's environmental image - encouraging cycling to work reduces carbon pollution. By offering this Scheme you are showing that you care about your community and your environment.
Improve staff fitness, health and morale - a healthier, fitter staff means better performance at work and fewer sick days; it also shows that you care about the welfare of your staff. Happy staff = busy workforce.
Reduce parking and congestion problems.
Q. I'm very interested in getting a bike, how do I avail of the Cycle to Work Scheme? The first thing to do is find out if your employer is willing to take part in the scheme. The scheme is available to both public and private companies. Once you have established their agreement in taking part then you simply come into us and pick out your bike and accessories.
Q. How much can I spend? What kind of accessories can I purchase? The Cycle to Work Scheme allows you to spend up to €1,000. If the bike and goods you choose exceed this amount, you simply pay the excess directly to the bike shop yourself. Your tax saving will only apply to the €1,000 spent. Purchase of the following accessories are allowed under the scheme:
helmets; bells and bulb horns; lights; mirrors and mudguards; cycle clips and dress guards; panniers, luggage carriers and straps; locks and chains; pumps, puncture repair kits, cycle tool kits and tyre sealant; reflective clothing along with white front reflectors and spoke reflectors.
Q. How do I pay for the bicycle? How much will I pay? How do I make a saving?
You earn (gross) per annum Cost of purchase: You repay (net) per week: You save on purchase:
€20,000 €500 €6.83 €145.00 €750 €10.24 €217.50 €1,000 €13.65 €290.00
You earn (gross) per annum Cost of purchase: You repay (net) per week: You Save:
€40,000 €500 €4.90 €245.00 €750 €7.36 €367.50 €1,000 €9.81 €490.00
YES, YOU COULD REALLY GET A BIKE AND ACCESSORIES WORTH €1,000 AND ONLY REPAY €13.65 PER WEEK FOR 12 MONTHS. IT IS A FANTASTIC OPPORTUNITY TO GET "ON THE ROAD"!!!
Actual savings will depend on each individuals personal circumstances. The figures above should only be used as a guide. We would advise everyone to check out their own personal savings. Your employer will pay up front for your purchase and then you will repay your employer every pay period (weekly/fortnightly/monthly) for an agreed period of time. This is usually 12 months. The above figures are based on a 12 month salary sacrifice agreement being in place.
IT REALLY IS AS SIMPLE AS THAT. IF THERE'S ANYTHING WE'VE FORGOTTEN PLEASE JUST ASK. WE WILL BE GLAD TO ANSWER ANY QUESTIONS YOU MAY HAVE.