Keen to make your next bike purchase through a cycle/bike to work scheme? Find your closest bike shop in Ireland here and make an enquiry!
Thanks to Ireland’s cycle/bike to work scheme, it has never been easier nor more cost-effective to purchase a bike in Ireland. Yet despite the scheme now firmly entrenched in workplaces Ireland-wide, questions remain amongst those who are new to the concept.
We answer the key information you might need to know so that you can participate in the cycle/ bike to work scheme as an employee, an employer or a bike shop owner. Watch our quick intro video about the scheme (handy for all parties - employees, employers and bike shop owners) or read up some more below.
Please note information was correct as of December 2016.
What is Cycle/Bike to Work?
It’s a salary sacrifice scheme designed to enable more Irish people to adopt healthy lifestyle choices.
Cycle/Bike to Work - Information For Employees
- You can apply for any amount up to €1,000
- You can apply every five Tax years
- Depending on your tax rate you can save up to 52% on the retail cost of a bike package. The below figures should be used as a guide only:
- For employees earning over, 52% savings are based on 40% Tax, 4% PRSI and 8% USC
- Average savings are between 29-49% (based on either 20% or 40% Income tax, 4% PRSI and 5% USC)
- You can purchase one bike and/or approved accessories, including cycle helmets conforming to European Standard EN 1078, bells and bulb horns, lights (including dynamo packs), mirrors, mudguards, cycle clips and dress guards, panniers, luggage carriers and straps (to allow luggage to be safely carried), locks and chains (to ensure bike can be safely secured), pumps, puncture repair kids, cycle tool kits, tyre sealants, reflective clothing, front reflectors and/or spoke reflectors.
- The salary period cannot exceed 12 months under any circumstances
The scheme is based on trust but employees must:
- Sign a declaration that 50% of the usage of the bike will be for commuting purposes
- Not join the scheme (no matter if they move employers) more than once in any 5 tax years
- Must only get their bike package for themselves
- Even if the bike is lost, stolen or damaged beyond repair the employee is liable to repay the full Gross Salary Sacrifice amount
- The purchase must be made in one transaction – (they cannot purchase a bike from one retailer and accessories from another.)
Cycle/Bike to Work - Information For Employers
- The maximum salary sacrifice (repayment) period is 12 months but an employer can decide to reduce this to suit their business needs and can define the Salary Sacrifice repayment anything between 1 – 12 months
- The salary sacrifice period cannot exceed 12 months under any circumstances
- Employers save up to 10.75% on Employer PRSI on each application to a maximum of €1,000
- Once an employer provides the scheme for one employee they must make it available for all *some employers put caveats in place such as employees who have not completed their probationary period have to complete it before they apply
Maintain records (e.g. delivery dockets, invoices, payments details, salary sacrifice agreements between employer and employee, signed statements from employees that the bicycle/bicycle safety equipment is for own use and will be used for travelling to and from work).
Cycle/Bike to Work - Information For Bike Shop Owners
Scheme providers such as Cyclescheme Ireland provide full administration services to employers and employees. This often helps free up resources so bike shops can participate in the scheme without having to invest too much time in the administration of it.
In the case of Cyclescheme Ireland, bike shop partnership benefits include:
Providing the administration and promotion of their company Cycle to Work scheme free of charge (they look after the whole application process from initial set up to salary sacrifice agreements to delivery of payroll deduction files)
Guiding employees through the entire five-year LifeCycle of the scheme
Providing an online and offline application solution for employers and employees making the scheme accessible for all
Providing employee wellness events to promote the Cycle to Work scheme and all things cycling
Ensuring all scheme material and schemes that they run are Revenue compliant
Providing an email and phone helpdesk from Monday to Friday 9am – 5pm to deal with all employee queries
Managing all payments to retailers meaning employers only have one vendor to deal with
Providing an online B2B site so retailers can access their store invoices, see who has made an application for their store and redeem Cyclescheme eCertificates for payment