Cycle to Work Tax Scheme
On 1 January 2009 a new government scheme to encourage people to cycle to work came into force. Cycling keeps you fit, it’s fast, cheap and reliable – and it’s good for the environment.
The new bike scheme covers bicycles and accessories up to a maximum cost of €1,000. The bicycle must be purchased by your employer but the scheme can then operate either with your employer bearing the full cost of the bicycle, or by way of a salary sacrifice agreement in which you pay for it, tax free, over 12 months
Participating in the bicycle scheme is easy. If your employer decides to take part, they simply buy the bike and equipment on your behalf and off you go. Its is up to you and your employer to decided whether they buy the bike outright for you or whether you pay for it via ‘salary sacrifice’. Either way you save on tax.
The scheme is flexible in its application in that your employer doesn’t have to specifically notify the Revenue Commissioners that you’re availing of the scheme and 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. More information from Revenue can be found here.
Cycling to work is a win-win-win situation – get involved!
From large to small employers, Morans Bike Shop would be happy to help you with this scheme.
We are approved suppliers to provide bikes and accessories through this scheme to both Civil and Public Servants and the Private Sector.