LeisureWorld Cycle to Work Scheme
What is the Cycle to Work scheme?
The cycling initiative allows employees to purchase a bike and associated equipment tax free. The Government wants 10 per cent of all journeys by 2020 to be undertaken by bicycle and has introduced the scheme to persuade 150,000 commuters to use the bicycle for short journeys. Currently just 4 per cent of Dublin commuters travel by bicycle to work, one of the lowest figures in Europe. The Minister for the Environment John Gormley has announced a €5 million initiative in his carbon budget to upgrade cycle paths in Dublin.
Who can apply for the tax exemption?
The scheme must be operated by an employer. The bicycle can be funded by either the employer or through salary sacrifice of the employee, but it must be purchased by the employer. If employers pay for the bicycle, they can claim it as a tax exempt benefit-in-kind. Where funded by salary sacrifice there will be savings on tax, PRSI and levies. The scheme means an effective saving of up to 51 per cent on the cost of a new bicycle for a top rate taxpayer.
How does it work?
The employee would choose a bicycle and any associated safety equipment (up to a maximum value of €1,000) and the employer would purchase same on behalf of the employee.
What are the benefits to the employee?
- There are a host of benefits available to employees should their workplace choose to launch a cycle to work scheme, these include:
Huge savings on bikes and accessories
- Employees will qualify for a saving of between 26% and 47% off the retail cost of bikes and accessories.
- Monthly payments with no finance charges.
- Make your salary go further each month.
- Save on monthly fuel, parking, car and