The cycle scheme allows employees to buy a bike and associated equipment tax-free.
Under the initiative, salaried employees who are employed and paying PAYE tax in Ireland.
A salary sacrifice happens when an employee gives up the right to receive part of the pay due to them under their contract of employment in return for the employer's agreement to provide some form of non-cash benefit, in this case the purchase of a bicycle and related equipment. You will make salary sacrifice payments from your gross rather than net salary.
Yes, there is a limit on the price of the bike, you will only be able to tax relief up to a maximum of â‚¬1,000. For more expensive orders you can pay the balance in cash directly to the shop.
It will still be down to you (employee) to complete the full payment even if you no longer possess the bike, which means if the bike is stolen the employee will be liable for any outstanding monies without any tax exemptions. It is very important to insure the bike, and any goods fitted to the bike, to safeguard against the losses following theft. Bike to Work Ltd offers discounts on bike insurance through Blue Insurance. You can obtain safety equipment from Bike to Work Ltd partnering shops, where you can ask for approved ˜Secure D-locks and cable locks to conform to insurance companies requirements.
Bells, clips, dress guards, helmets, horns, lights, locks, mirrors, mud guards, panniers and straps, are all included, as are pumps, puncture repair kits, cycle tools, reflectors and reflective clothing. While raingear isn't covered outright, clothing that is both waterproof and reflective is covered.
The scheme is a voucher scheme and you will need to apply for a voucher to redeem against your goods when you go to collect them from a local participating bicycle shop. To obtain your voucher you need to:
This will be up to 12 months depending on the options that your employer provides.
There is no requirement for you to cycle to work for a specified number of days throughout the year and there is no special requirement for you to record your trips. The scheme does require that the bike is mainly used by you to travel to work. You can also use the bike for leisure at weekends and on holiday.
The Department of Transport does not expect employees to keep a record of mileage.
Yes, even if you are still paying for your bike through salary sacrifice. Bike to Work Ltd offers discounts on bike insurance through Blue Insurance.
Bike to Work Ltd offers discounts on bike insurance through Blue Insurance.
Bike to Work Ltd partner shops are capable of supplying bike packages mail order from their shops, under the Government's green travel plan. However, there are distinct advantages when buying from your local bike shop that will be the first port of call for advice, servicing, after sales and warranty.
You are responsible for maintaining the bike for your own use. Your local shop will be able to advise you about necessary servicing depending on how you use your bike. They are also likely to give your bike a first free service once you have bedded it in.
Under the terms of the purchase agreement the order is non-cancellable. This means that you will need to settle all outstanding monies before you leave. The outstanding balances will be deducted from your final net salary payment.
Your pension contributions are payable on your full salary. Consequently, your pension and related benefits are not affected by the sacrifice.
You will have to check with your employer.
The remaining deductions may be made before you go on leave or postponed until your return.
Any remaining deductions will be taken from your final salary payment.
Visit your local bike retailer and follow the steps set out above to order your voucher.