National Bike Week is a celebration and promotion of all that’s great about bikes and cycling and as the events get going again for 2016. At Intelligo we’re doing all we can to encourage our staff to get healthy and cycle to work- you can make sure you’re set to get taking part too by availing of the Cycle to Work Scheme available in both Ireland and the UK. A tax incentive scheme available to all employees who wish to cycle to work!
Under the Cycle to Work Scheme employers can pay for bicycles and bicycle equipment for their employees and the employee pays back through a salary sacrifice arrangement of up to 12 months. In Ireland, the employee is not liable for tax, PRSI or the Universal Social Charge on their repayments also.
What equipment does the scheme apply to?
The Cycle to Work Scheme applies to new bicycles and pedelecs but does not cover motorbikes, scooters or mopeds.
Purchase of the following new safety equipment is also covered:
– Cycle helmets which conform to European standard EN 1078
– Bells and bulb horns
– Lights, including dynamo packs
– Mirrors and mudguards to ensure that the rider’s visibility is not impaired
– Cycle clips and dress guards
– Panniers, luggage carriers and straps to allow luggage to be safely carried
– Locks and chains to ensure cycle can be safely secured
– Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs
– Reflective clothing along with white front reflectors and spoke reflectors.
How is the bike paid for?
Any items purchased via the Cycle to Work Scheme is paid by an employer to the chosen supplier. The employer then instructs their payroll department to set=yo a ‘salary sacrifice’ arrangement salary over an agreed time frame (which cannot be more than 12 months). This means that one visits the shop, selects the equipment and have the store invoice the employer directly for the cost. The repayment for the bicycle and equipment is then deducted from the employee’s gross salary (this means before income tax, PRSI, pension levies, etc.). These deductions can be made weekly, fortnightly or monthly depending on your salary payment arrangement.
Note: You can only avail of the Cycle to Work Scheme once in a five-year period. This applies even if you do not purchase equipment up to the allowed limit.
You must use the bicycle and safety equipment mainly for qualifying journeys. This means the whole or part of a journey between your home and your regular place of work. Employers do not have to monitor this, but you will be asked to sign a statement saying that the bicycle is for your use and will be mainly used for qualifying journeys.
How to apply?
To apply ask your employer or payroll department for the necessary forms.
All information is sourced from relevant organisations or authorities and is for information purposes only, for further details or any queries, please contact the necessary bodies directly.