The Cycle-to-Work Scheme was introduced on 1st January 2009. If an employer purchases a bike and associated safety equipment for an employee, the purchase is tax free. In most cases the employer then uses “Salary Sacrifice” to reclaim the cost of the bike from the employee over one to twelve months. The employee pays for the bike but gets it tax free. There is no time limit on the scheme.
The relevant official documents are listed below.
The Cycle-to-Work scheme is now being rolled out to the Civil Service and Bike to Work are already supplying bikes to public sector clients minimising the administration involved and providing the same benefits we provide to the private sector.
The relevant documents are listed below.
We have created a Civil Service page with further information specific to the Civil Service.
The Cycle-to-Work tax incentive was announced in the November 2008 Budget. (Chapter 3, Section 7 of the Finance (No. 2 Bill) 2008)
Download File: Finance Act 2008 (No. 2)
In December 2008 Revenue Issued a Guidance Document titled “Provision of Bicycles for Directors and Employees – Exemption from Income Tax in respect of Benefit-In-Kind”
Download File: Revenue Guidance Document
In May 2009 the Department of Finance issued Circular 16/2009: Cycle-to-Work Scheme which sets out the operation of the scheme for the Civil Service.
Download File: Department of Finance: Circular 16/2009
The OPW Government Supplies Agency has provided further guidance on the operation of the Cycle-to-Work scheme for the Civil Service. They have a website and a List of Approved Suppliers. Bike to Work and all it’s partner shops are approved suppliers.
The Irish Bicycle Business Association published a Report on the Cycle to Work Scheme Report on the Cycle to Work Scheme in October 2011 based on research by the association’s members.