The bike to work scheme is a tax incentive programme that encourages employees to use bicycles for commuting. It offers a practical way to reduce travel costs, promote sustainable transport, and improve personal health – all while saving money directly from your gross salary.
- How the cycle to work scheme works
- Eligibility and the application process
- What’s covered under the scheme
Discover how cycling to work can become a smarter, cost-effective daily choice.
How the cycle to work scheme works
Under the cycle to work scheme, employees can purchase a new bike and related accessories through their employer. The cost is then deducted from the employee’s gross salary over a set period, typically 12 months. This reduces income tax, PRSI, and USC, offering savings of up to 51%, depending on earnings.
The scheme applies to both traditional and electric bikes. Whether you prefer a standard bike or an electric bike for longer commutes or heavy loads, your choice can usually be included – along with essentials like helmets, mudguards, and cycling clothing.
The bike to is an excellent opportunity to make commuting healthier and more affordable.
Eligibility and the application process
To use the scheme, the employee must be on the company payroll. The employer purchases the bike and equipment directly or reimburses the cost, usually based on an invoice from an approved bike shop. Payment is spread through payroll without interest or upfront fees.Home
Self-employed individuals are not eligible, though they may claim cycling expenses through other mechanisms. Employers can decide how often employees may avail of the scheme – usually once every four years.
What’s covered under the scheme
Eligible items include bikes, helmets, lights, locks, clothing, and accessories. The maximum value is typically €1,250 for regular bikes and €1,500 for electric bikes. All products must be intended for commuting or part of the daily journey to work.
More information at cyclesuperstore.ie.
Using the bike to work scheme means you save directly from your gross salary, lowering tax contributions while spreading the cost. It’s a budget-friendly way to invest in better commuting. Over time, cycling can reduce fuel costs, car maintenance, and public transport expenses.
Beyond financial savings, cycling to work promotes physical well-being, reduces stress, and helps decrease your environmental footprint. It also aligns with workplace wellness initiatives and green commuting policies.
The bike to work scheme is a flexible and cost-effective system that benefits both employers and employees. If you’re looking for a healthier, more sustainable way to commute, it’s worth exploring this programme and reviewing what products and services are available to you.
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