The FAQ's below relate to the Cycle to Work scheme and the Taxsaver 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. Under the scheme you don’t pay Income Tax, PRSI or Universal Social Charge on the price of the bicycle and/or safety equipment up to the value of €1,000. To take part in the Cycle to Work scheme employees will need to agree to reduce (sacrifice) an agreed amount of their salary for a set amount of time, which can be no longer than 12 months.
The purpose of the scheme is to encourage more employees to cycle to and from work, or between work places, thereby contributing to lowering carbon emissions, reducing traffic congestion and improving health and fitness levels.
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 1,000 euro. For more expensive orders you can pay the balance in cash directly to the shop. There is no minimum amount but please note that you are only allowed one application every 5 years regardless of the amount used.
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 offers discounts on bike insurance through Blue Insurance. You can obtain safety equipment from Bike to Work 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:
- Access to your company Bike to Work online microsite where you print off a quote form.
- Visit your local participating bicycle shop to choose your bike and equipment.
- Having got the quote from the shop, return to the website and enter the details.
- Once the quotation is approved by your HR department Bike to Work will invoice your employer.
- Once payment is made for the bike package by your company a secure voucher will be emailed to you.
- Redeem your voucher at the bike shop and collect your goods (you must provide your Company photo ID card or current Drivers license or Passport to do this).
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.
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.
Yes. If the bicycle is used for work related journeys, for example trips to the post office or to collect office supplies.
The Department of Transport does not expect employees to keep a record of mileage.
Yes. These schemes are not mutually exclusive.
Yes, even if you are still paying for your bike through salary sacrifice. Bike to Work offers discounts on bike insurance through Blue Insurance.
Bike to Work 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 gross salary payment.
Your pension contributions are payable on your full salary. Consequently, your pension and related benefits are not affected by the sacrifice.
The Salary Sacrifice deductions are calculated using the amount you apply for and which are specified on your Salary Sacrifice Agreement If you do not fully utilise the amount, your salary will still be reduced by the amount that you applied for and which you agree to and when signing your Salary Sacrifice Agreement. If there is a shortfall, you can obtain relevant safety equipment to make up the difference. The shop cannot give you any change or store credit as this is against the Revenue rules for the scheme
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.
Revenue stipulates that the purchase of the bicycle and safety equipment must be processed in one transaction only.
TheTaxsaver initiative gives you the opportunity to sacrifice part of your salaryin return for travel tickets, which should be used primarily for part or alljourneys to/from work. Under the scheme you don’t payIncome Tax, PRSI or Universal Social Charge on the price of the ticket. To take part in the Taxsaverscheme employees will need to agree to reduce (sacrifice) an agreed amount oftheir salary for a set amount of time, which can be no longer than 12 months.
The purpose of the scheme is to encourage more employees to travel to and from work, or between work places, thereby contributing to lowering carbon emissions, reducing traffic congestion.
Savings vary depending on the type of ticket you choose and on your income band. You can get an estimate of the savings you can make here
No, there is no limit on the price of the ticket.
This will be up to 12 months depending on the options that your employer provides.
When we issue your ticket you will receive an email with instructions on how to activate the ticket on your Leap Card. You should follow the intructions and if you still have problems contact us at firstname.lastname@example.org
We recommend that allLeap Cards are registered to assist in the replacement process. They can beregistered at https://www.leapcard.ie/
To request a replacement ticketplease complete the form:
No, all TaxSaver monthly and annual tickets must be purchased by the company on behalf of the employee as per Revenue guidelines.
No, TaxSaver Tickets cannot be transferred to another person, as they can only be used by the individual who received the tax benefit.
It depends on the arrangement reached with the employer - an employee may keep the ticket or may be required to return it.
Monthly tickets are valid for one calendar month, while annual tickets are valid for one year commencing from the first day of any month.
No. The ticket can also be provided in lieu of a cash bonus, for example as a Christmas bonus, and because the ticket is tax free, it provides much better value than a cash bonus.
Under the rules of the Taxsaver scheme any ticket refunds must be put through the employees payroll and the relevant PAYE, PRSI, and USC deducted. Refunds must never be made directly to the employee by the operator or TravelHub. It is entirely at the employers discretion to allow ticket refunds. A company is not obligated to provide the Taxsaver scheme or ticket refunds and can decide their own policy on this.
If your ticket is at Processing it is being ordered and it will be with you for the 1st of the month. If your ticket is a renewal it will be uploaded onto your existing card on the 1st after it has been activated. If you have changed your ticket type or this is your first order, it will be sent to your HR via same day delivery courier post. Tickets are being processed for delivery and will be with you by the 30th at the latest.