What is the Cycle to Work Scheme?
The Cycle to Work initiative gives you the opportunity to sacrifice part of your salary in return for one bicycle and/or allowable safety equipment, which should be used primarily for part or all journeys to/from work.
What are the limits?
You can apply for 1 bike package and the limits are up to €1,250 for a pedal bicycle and eligible accessories and up to €1,500 for an e-bikes and eligible accessories. You can only avail of the benefit and Tax savings once every 4 years.
Who purchases the bicycle and/or safety equipment?
The employer must purchase the bicycle and/or safety equipment for you so that you can make your Income Tax, PRSI and USC savings via Salary Sacrifice The exemption will not apply where an employee purchases a bicycle and/or safety equipment and gets reimbursed by his or her employer.
How much can I save?
You can save up to 52% of the retail cost – average savings range from 28.5-48.5% based on marginal tax rate (20% basic and 40% Higher,) USC @4.5% and PRSI @4%.