The Cycle to Work Scheme (generally known as the Bike to Work Scheme) is a tax incentive scheme to encourage employees to cycle to work. Under the scheme an employer can pay for a new bicycle (including bicycle accessories) and the employee then has the cost deducted in regular instalments from their gross salary. From 1 August 2020, the scheme was extended to eBikes up to the value of €1,500.
Buying an eBike through your employers Cycle to Work Scheme can save up to €757 in Tax, PRSI and USC.
Frequently asked questions explained;
Does your employer run the Cycle to Work Scheme?
Confirm with your employer that you are eligible for the Cycle to Work Scheme.
How does my employer make payment?
At Bleeper we only accept direct bank transfer payment. Bleeper does not receive payment from any third party bike2work initiatives.
What is your limit?
The Cycle to Work initiative is capped at €1250 for all manual self-propelled bicycles and €1500 for all electric pedal assisted bicycles. Any excess of this amount is to be covered by the employee!
How many times can I avail of the Cycle to Work Scheme?
You can avail of the scheme, once every four tax years.
If I spend less than the maximum, can I use the remaining amount at any time?
If you spend less than the maximum allowed, you cannot make another purchase for the remaining balance. The bicycle and any safety equipment must be purchased in the same transaction.
How quick do I need to pay back the bike cost?
You must agree this with your employer using a salary sacrifice arrangement. Payments can be spread over a maximum of 12 months under this arrangement.
Let's take a look at what we have available through the Cycle to Work Scheme: