Cycle to Work Scheme

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This initiative was designed with the aim of encouraging people to cycle to work.

Under the scheme, your employer can buy a bicycle and safety equipment for you and it will not be considered a taxable benefit-in-kind.

Alternatively, you can approve a 'salary sacrifice' with your employer over an agreed period of time (no longer than 12 months) to cover the cost of the bike. Under such an arrangement, you will only have to pay Income Tax (IT), Universal Social Charge (USC) and Pay Related Social Insurance (PRSI) on the balance of your salary.

Even if the cost of the bicycle and safety equipment was less than €1,250, employees can only avail of this scheme once every five years.

There are 3 limits depending on the type of bike you bought.

The limit (including related safety equipment) is:

€3,000 for cargo and ecargo bikes.
€1,500 for pedelecs and e-bikes.
€1,250 for other bikes.

Note
The scheme does not cover:

• motorbikes, scooters or mopeds
• second-hand bicycles or equipment
• bicycle parts or associated equipment

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