Bike to Work Scheme Ireland – How It Works and Who Can Benefit

By Ehsteem Arif

Published on:

Simon Harris

The Government of Ireland has introduced the Bike to Work Scheme to encourage employees to cycle to work, promoting health and reducing the use of public transport. This article provides comprehensive details about the scheme.

Overview

The Bike to Work Scheme is a taxation initiative allowing employees to purchase bicycles through their employers, with the cost deducted from their gross salary. This scheme promotes cycling, benefiting health and the environment by reducing fuel consumption and CO2 emissions.

Under this scheme, employees can save money by purchasing a bike before tax is applied. Deductions include USC and PRSI. Employees need to check if their employers participate in the scheme and can support them in buying a bicycle. Employers who join the scheme should assist each employee in the office.

How It Works

Self-employed individuals can also participate but must handle both employer and employee contributions themselves. They must provide a written statement confirming the bike is for personal use and related to professional commuting.

The scheme operates through salary sacrifice, where the bike’s cost is deducted from monthly paychecks. It covers essential cycling equipment needed for safety and compliance with traffic regulations. The covered items include:

  • New bikes
  • Cycle helmets
  • Bells and bulb horns
  • Lights and mirrors
  • Cycle clips
  • Locks and chains
  • Mudguards and skirts
  • Puncture repair kits and cycle repair tools
  • Bike reflectors

Note that child seats, trailers, motorcycles, and second-hand scooters are not included in this scheme.

Eligibility

Certain eligibility criteria must be met to benefit from the scheme:

  • Age: Candidates must be over 18 years old.
  • Residency: Permanent residency in Ireland is required, with proof such as utility bills.
  • Immigrants: Must provide residency proof and country documents.
  • Living History: A minimum of 10 years living in the country.
  • Tax Compliance: All previous year’s tax returns must be filed.
  • Pending Tax Returns: No pending tax returns on the disbursement date.
  • Disability: Disabled applicants must provide medical documentation.
  • Employment Proof: Employment proof, salary slips, and related documents are required.
  • Bank Account: Details of the primary bank account for direct deposit.
  • Couples: Must provide proof of marriage.
  • Other Benefits: Documents related to any other state or central benefits.

Scheme Amount

The amount provided under the scheme depends on the type of bicycle purchased. Here are the key points:

The scheme aims to make cycling a more accessible and appealing option for commuting, offering financial incentives to both employees and employers. By promoting cycling, the scheme contributes to a healthier lifestyle and a greener environment.

The Bike to Work Scheme Ireland is a fantastic initiative to encourage cycling, offering significant financial and environmental benefits. Employees save on taxes, enjoy a healthier commute, and reduce their carbon footprint. Employers participating in the scheme can support their employees’ well-being and contribute to a sustainable future.

FAQs

How often can I use the Bike to Work Scheme?

Once every four years.

What equipment is covered by the scheme?

New bikes, helmets, lights, locks, and more.

Can self-employed individuals participate?

Yes, but they must manage contributions themselves.

What proof of residency is needed?

Utility bills, such as electricity or water bills.

Are child seats included in the scheme?

No, child seats and trailers are not covered.

For You!


Bike to Work Scheme Ireland cycling to work employee health environmental impact tax benefits

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Ehsteem Arif

A tax law expert with a knack for breaking down complex regulations into digestible insights. Ehsteem's articles on the tax news blog offer invaluable guidance to readers navigating changes in tax legislation.

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