Beat the urban commute
Save up to 52% on the cycle to work scheme
With our scheme,you can save money on a new bike and accessories, making your commute to work more enjoyable and cost effective. Get in touch today:
• Phone Number: +353 42 933 7159
• Email Address: [email protected]
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The cycle to work scheme is the Irish government’s initiative to encourage people to ride to work by offering tax-efficient ways to purchase bikes and cycling accessories.
The Cycle to Work Scheme is a tax incentive scheme that aims to encourage employees to cycle to and from work. It was introduced in 2008 by the Government. Under the Cycle To Work scheme, employers can pay for bicycles and bicycle equipment for their employees, and the employee pays back through a salary sacrifice arrangement of up to 12 months. The employee is not liable for tax, PRSI or the Universal Social Charge on their repayments.
A program designed to encourage employees to commute to work using environmentally friendly modes of transportation, such as cycling or walking. It provides incentives or benefits to employees who choose these active modes of transportation, promoting a healthier lifestyle.
| Bike to work bands | Cyclist income tax bands: Calculated Savings | ||
|---|---|---|---|
| Cycle to work thresholds | 33% tax band | 52% tax band | |
| 1. Normal Bike | €1,250 | €413 | €650 |
| 2. E-Bikes | €1,500 | €395 | €780 |
| 3. Cargo Bikes | €3,000 | €990 | €1,560 |
The higher your effective tax rate the more you save. Cycle to work Scheme can only be applied once every 4 years so its best to utilise the full cycle to work tax free threshold to maximise savings. The figures above are rough approximations and will depend on cyclist individual circumstances. We invoice your employer for the full cost of the bike and your employer deducts the relevant Cycle to work threshold from your gross pay as a tax free deduction meaning you do not pay PAYE & PRSI on the cost of the bike up to Revenue's approved tax free Threshold.
Your employer does not have to take part in the scheme. However, if they do, they must offer it to all their employees. Self-employed people are not eligible for the government cycle to work scheme (unless they are paying PRSI as an employee in addition to their self-employment).
The Cycle To Work Scheme Ireland applies to new bicycles and pedelecs (electrically assisted bicycles which require some effort from the cyclist). It does not cover motorbikes, scooters, or mopeds.
Purchase of the following new safety equipment is also covered:
• Cycle helmets that conform to the European standard EN 1078
• Bells and bulb horns
• Lights, including dynamo packs
• Mirrors and mudguards to ensure that the rider’s visibility is not impaired
• Cycle clips and dress guards
• Panniers, luggage carriers, and straps to allow luggage to be safely carried
• Locks and chains to ensure the cycle can be safely secured
• Pumps, puncture repair kits, cycle tool kits, and tyre sealant to allow for minor repairs
• Reflective clothing, along with white front reflectors and spoke reflectors.
You can avail of the Cycle to Work Scheme once every four tax years. This applies whether you buy a bike, an electric bike, or safety equipment. This means if you availed of the scheme in 2021, your next eligibility begins on 1 January 2025, regardless of the month you originally claimed it. The scheme was previously on a five-year cycle but was changed to four years from 1 August 2020 to make it more accessible.
The scheme allows you to buy a bicycle or electric bike and related safety equipment tax-free through a salary sacrifice arrangement with your employer. The maximum allowable amounts are €1,250 for a regular bike and €1,500 for an electric bike, including accessories such as helmets, locks, and lights.
To qualify, the bike must be used mainly for commuting—meaning at least 50% of its use should be for travelling to and from work. There’s no requirement to log journeys or prove usage, but the intent must be genuine.
• Once every 4 years – counted by tax years (e.g., Jan 2021 to Dec 2024).
• Year of purchase counts as Year 1.
• Previously, a 5-year rule before August 2020, now reduced to 4 years.
• No exceptions for theft, damage, or under-use.
• Must be used mainly for commuting (over 50% usage).
• Commuting includes full or partial journeys to work.
• No tracking required – employers don’t monitor usage.
• One commute per week satisfies the rule.
• €1,250 for standard bikes.
• €1,500 for e-bikes.
• €3,000 for cargo bikes.
• Includes safety gear like helmets, locks, and lights.
• The Cycle to Work Scheme in Ireland is a government initiative that allows employees to purchase a bicycle and related safety equipment through their employer, tax-free. The aim is to encourage cycling as a mode of transport and reduce commuting costs. Here’s how the application process typically works:
• Eligibility Check: You must not have used the scheme in the previous four tax years.
• Bike Selection: Choose a bicycle or electric bike, along with accessories, from a participating retailer. The limit is €1,250 for bicycles and €1,500 for e-bikes.
• Obtain a Quote: Request a detailed quotation from the supplier to submit to your employer.
• Employer Approval: Your employer reviews the request and arranges payment through a salary sacrifice agreement, which spreads the cost over a set period (usually 12 months).
• Collection: Once approved and paid for, you can collect the bike.
There is a limit of €1,000 on the amount that can be spent (this includes bicycles, safety equipment, and delivery charges). If you spend more than this limit, you are liable for a benefit-in-kind income tax charge. You can find out more about the scheme on the Revenue Commissioner’s website.
Contact your employer to ask about employee benefits, the government cycle to work scheme.
There are several reasons why you should choose The Cycle Centre in Dundalk, Ireland:
1. Experienced Staff: The Cycle Centre has a team of experienced and knowledgeable staff who are passionate about all things cycling. They can offer expert advice and guidance on choosing the right bike for your needs.
2. Wide Range of Bikes: The Cycle Centre offers a wide range of bikes from top brands such as Giant, Cube, and Liv. Whether you’re a casual rider or a competitive racer, they have a bike to suit your needs.
3. Quality Service: The Cycle Centre provides a high level of service to its customers, including bike fitting, servicing, and repairs. Their skilled mechanics can ensure that your bike is in top condition for a smooth and enjoyable ride.
4. Competitive Prices: The Cycle Centre offers competitive prices on its bikes and services, making it a great choice for cyclists on a budget.
5. Local Community: The Cycle Centre is a local, independent bike shop that is actively involved in the cycling community in Dundalk. By supporting them, you are supporting local businesses and helping to grow the cycling community in the area.
Overall, the Cycle Centre is a great choice for anyone looking for high-quality bikes, expert advice, and excellent service in Dundalk, Ireland.
The Cycle to Work Scheme is a government-backed initiative in Ireland that allows employees to purchase a bicycle or electric bike, along with safety equipment, tax-free through their employer. The goal is to promote cycling as a healthy, environmentally friendly, and cost-effective way to commute to work. Employees save up to 52% by purchasing through salary sacrifice (no income tax, PRSI, or USC).
The Bike to Work Scheme in Ireland is an initiative that encourages employees to choose a healthier, more active lifestyle while also reducing their carbon footprint by purchasing bicycles and related equipment through their employers. The government-backed scheme permits employers to provide their employees with tax-free bicycles and accessories worth up to €1,040 every 4 years. This includes bicycles, safety equipment, and accessories. Employees pay for the benefits through salaries over a period of 12 months, typically deducted through their payroll in equal installments.
HOW MUCH CAN I SPEND ON A BIKE AND ACCESSORIES THROUGH THE SCHEME?
1. Cargo bikes CYCLESCHEME | CYCLETOWORK | BIKE2WORK LIMIT VALUE – €3,000.00
2. E-BIKE CYCLESCHEME | CYCLETOWORK | BIKE2WORK LIMIT VALUE – €1,500.00
The Ride to Work Scheme in Ireland is a government initiative that allows employees to purchase a bicycle and safety equipment tax-free, up to a certain amount, through their employer. This encourages more people to cycle to work and promotes a healthier lifestyle.
Employers can set up the scheme for their employees, who can then choose a bicycle and safety equipment from a registered retailer, such as CycleCentre. The cost of the bike and equipment is deducted from the employee’s salary before tax, saving them money.
In Ireland, employees can purchase a bicycle and safety equipment up to a maximum value of €1,250 tax-free through the Ride to Work Scheme.
While the main purpose of the scheme is to encourage cycling to work, there are no restrictions on how you use the bicycle outside of work hours.
Unfortunately, the scheme must be set up by employers, so you will need to encourage your employer to implement the Ride to Work Scheme if it is not already in place.
If you leave your job before the end of the scheme’s payback period (usually 12 or 18 months), you may be required to pay back the outstanding balance on the bike. This will depend on your employer’s specific terms and conditions.
The scheme only allows for one bike purchase per employee, so you cannot buy a second bicycle tax-free through the same scheme.
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