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The Cycle to work scheme

What is the cycle to work scheme

The Cycle to Work Scheme is a government run incentive that aims to encourage individuals to cycle to and from work. Under the scheme your employer can buy a bicycle and safety equipment for you to be used primarily to commute to and from work. The scheme is limited to bicycles and safety/essential equipment to a total of €1000 which will not be a taxable benefit-in-kind. As you do not pay income tax, PRSI or USC on the cost of your new bike you can save up to 51% by availing of this scheme.

With the Cycle to work scheme you can save up to 51% on your new bike and equipment and while these savings are limited to the first €1000 you are entitled to spend more and pay for the remainder yourself.

How does it work?

The cycle to work scheme works in the following way:

  1. Visit us and choose your new bike and accessories.
  2. We will then issue you with an invoice which you can take to your employer.
  3. Upon their approval, your employer will pay us the total of your invoice via bank transfer, cheque or a third party voucher scheme.
  4. We will contact you to arrange collection of your bike.
  5. You will pay your employer back via a salary sacrifice. In this arrangement you give up an agreed amount of your gross salary to cover the cost of the bicycle over an agreed time, which cannot be for more than 12 months.
  6. You do not pay Income Tax (IT), Universal Social Charge (USC) and Pay Related Social Insurance (PRSI) on the total of the invoice, which is where the saving is made
  7. Therefore the level of saving you make will be relative to the amount you earn/the amount of tax you pay. Typically savings are between 30-51%

How often can you take advantage of this scheme?

You can only avail of the cycle to work scheme once every 5 years. Even if you did not use the full amount within the last 5 years. However the Scheme is available as of the first calendar month of each year. Therefore if you last used the cycle to work scheme in any month in 2014 you can use the scheme again as of January 2019. If you last used the cycle to work scheme in any month in 2015 you will be able to take advantage of the cycle to work scheme as of January 2020 and so on and so forth.

Does my employer have to offer the cycle to work scheme?

Your employer is not obliged to make the cycle to work scheme to their employees, however it is really quite a straight forward scheme to take part in. If your employer has any questions about the scheme, please feel free to put them in touch with us and we can help explain how this system works.

Voucher Schemes

There are a number of third party voucher schemes that your employer may use to process admin side of the cycle to work scheme on their behalf. With these schemes you will be issued a voucher or voucher code that you will need to bring or forward to us as a form of payment. At Bespoke cycles we accept all current Irish voucher schemes such as, BikeToWork, Bikes4Work, Tax Free Bicycles and BikeIT. If you have another form of voucher it shouldn't be an issue but please contact us before placing your order to clarify.

To request an invoice or find out more information please visit our store or send in a request via our email.

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