Cycle to Work Scheme: Who Qualifies and What You Get
Learn how to save on the cost of a new bicycle and safety gear through this employer-based tax relief scheme.
This scheme allows you to purchase a bicycle and certain safety equipment using tax-free funds.
Who it's for
This scheme is specifically designed for taxpayers who are currently in employment. If you are an employee earning an income that is subject to taxation, you may be eligible to participate.
What you get
The primary benefit is the ability to acquire a bike and essential safety equipment through a tax-free purchase. By using this scheme, the money used to pay for your equipment is taken from your gross salary before tax is applied. This means you can get your new bicycle and the necessary safety gear at a lower effective cost than if you were to pay for them entirely from your take-home pay.
What it costs you
There is no direct fee to join the scheme, but there is a specific requirement regarding how you pay. You cannot simply go to a shop and buy a bike yourself to claim the benefit later; the entire purchase must be facilitated and arranged through your employer. This usually involves your employer purchasing the equipment on your behalf and then deducting the cost from your salary over a set period.
The catch to know
There is a strict limit on how often you can use this benefit. You are only permitted to use the scheme once every four years. This means you cannot use it to upgrade your bicycle frequently; you must wait for the four-year cycle to complete before you can utilize the tax relief again.
How to apply
- Confirm with your employer that they are willing to facilitate the scheme through their payroll.
- Select the specific bicycle and the safety equipment you require from an approved provider.
- Coordinate with your employer to set up the salary deduction arrangement.
- For further official guidance, visit the portal: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-and-charges/cycle-to-work-scheme/index.aspx