The Cycle to Work Scheme is a tax incentive scheme that aims to encourage employees to cycle to work. Under the scheme, employers can purchase bicycles and safety equipment for their employees, and the employee can then repay the cost of the bicycle and equipment in regular instalments from their gross salary.

The scheme is open to all employers and employees in Ireland, and it is designed to make cycling to work more accessible and affordable. The scheme is also intended to promote healthier lifestyles and reduce traffic congestion and pollution.

The value of the bicycle and equipment purchased under the scheme is not subject to income tax, PRSI, or USC, which makes it an attractive option for employees. The scheme is also beneficial for employers, as it can help to reduce the cost of providing company cars and parking spaces.

The amount that can be spent on a bicycle and equipment under the scheme depends on the type of bicycle purchased. Cargo and ecargo bikes have a limit of €3,000, pedelecs and ebikes have a limit of €1,500, and other bicycles have a limit of €1,250. The limits include related safety equipment, such as helmets, lights, and locks.

The scheme is available to all employees, regardless of their level of income. However, the scheme is subject to certain conditions. For example, the bicycle and equipment must be used mainly for commuting to and from work, and the employee must use the bicycle for at least 50% of their commuting journeys.

The scheme is also subject to a four-year limit, which means that employees can only avail of the scheme once every four years. The tax year in which the bicycle is provided counts as the first year, which means that if an employee uses the scheme in any month in 2023, they can use it again from January 1, 2027.

To avail of the scheme, employees should first check with their employer to see if they participate in the scheme. If the employer does participate, the employee can then choose a bicycle and equipment from a cycle shop of their choice. The employer will then purchase the bicycle and equipment and provide it to the employee.

The employee will then repay the cost of the bicycle and equipment in regular instalments from their gross salary. The instalments are deducted from the employee’s salary before tax, which means that the employee saves money on income tax, PRSI, and USC.

In conclusion, the Cycle to Work Scheme is a tax incentive scheme that aims to encourage employees to cycle to work. The scheme is open to all employers and employees in Ireland, and it is designed to make cycling to work more accessible and affordable. The scheme is also intended to promote healthier lifestyles and reduce traffic congestion and pollution. The value of the bicycle and equipment purchased under the scheme is not subject to income tax, PRSI, or USC, which makes it an attractive option for employees. The scheme is subject to certain conditions, such as the bicycle and equipment being used mainly for commuting to and from work, and the employee using the bicycle for at least 50% of their commuting journeys. The scheme is also subject to a four-year limit, and employees should check with their employer to see if they participate in the scheme.