What is Bike to Work Scheme
The Cycle to Work Scheme is a tax incentive scheme which aims to encourage employees/contractors to cycle to and from work.
I am a Director of a company, am I allowed to claim it?
Yes, The Bike to Work scheme is available if you have not availed of this scheme in the last 5 years.
Please note that if you availed of the scheme for even a small amount of expenditure relating to the provision of bicycles and/or safety equipment you won’t be able to avail of the relief again for five years.
How does the tax relief work?
The cost of the bike is exempt from PAYE, USC & PRSI saving you up to 52% (if you are a higher rate taxpayer). The max allowable is €1250 including accessories.
For example, if you purchase a bike (including accessories) for €1250, your Tax Relief will be €650. By availing of the Scheme, the bike cost will be only €600.
How do I purchase a bike?
The purchase can be made in any cycle shop by you directly or employer. There is a limit of €1,000 per bicycle purchased (including safety equipment). The cost of the bicycle may be more than €1000, if this is the case then the balance will be covered by you directly.
Supporting Information Required
The purchase receipt/invoice must be made out in the name of the Limited Company.
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