Bike 2 Work

Cycle to work Scheme
Introduction On 1 january 2009, the government introduced a cycle to work scheme allowing an employer to provide an employee with a bicycle and or safety equipment without the employee being liable for benefit in kind taxation, it states that provided they are used for whole or part of a journey between home and place of work or between places of work. this dose not need to be aheared to 95 per cent of our bike 2 work clients avail of this scheme for there own leisure use and the goverment dose not look for this to be done.
The scheme covers bicycles and cycle safety equipment up to a maximum cost of 1000 euro inclusive of vat most companys spread the cost over six to twelve months.


STEP 1: Employee visits local bicycle shop to choose bicycle and / or cycle safety equipment and this  is writen down as a quotation  and given to employee big state organisations may also have there own internal document whitch is filled out in shop and quotation is then attached to document and is then returned by employee to there pay rolls.our shop will help you pick out  the bike and size that is suitable to you and what equipment you may need this equipment comes with full 12 month waranty and service back up.
STEP 2: On receiving letter or e-mail from company employee revisits bicycle shop to collect bike and equipment this should take about 10 days in total. smaller companys may just issue a cheque to employee to hand in them selves to shop. this may take as littel as a couple of days your bike will be fully esembled and all equipment fitted. we will always be there to help you with any questions you may have about your new bike.
STEP 3: The gross cost of your bicycle and safety equipment, up to €1000 max inclusive of vat 21% will be deducte

How do i pay for my bike and safety equipment ?
The gross cost of a bicycle  and safety equipment, up to a thousand euro inclusive of vat, will be deducted through a six to twelve month salery foregone arrangement this is the most popular time period. the gross cost  whitch you forego will not attract income tax, PRSI or income levy resulting in your savings.

How much can i save ?
Actual savings will depend  in your personal tax circumstances estimated savings are outlined below.

Higher Rate Taxpayer: 41% Tax + 8% PRSI + 2% Income Levy = 51%

Cost of bicycle and sefaety equipment €250 €500 €750 €1000
Tax relief saving % 51% 51% 51% 51%
Tax relief saving € €127.50 €255.00 €382.50 €510.00
Net cost to employee €122.50 €245.00 €367.50 €490.00

Lower Rate Taxpayer: 20% Tax + 8% PRSI + 2% Income Levy = 30%

Cost of bicycle and sefaety equipment €250 €500 €750 €1000
Tax relief saving % 30% 30% 30% 30%
Tax relief saving € €75.00 €150.00 €225.00 €300.00
Net cost to employee €175.00 €350.00 €525.00 €700.00

What cycle equipment is covered?
The following is a list of the equipment which is covered.

  • Cycle helmets which conform to european standard EN 1078.
  • Bells and bull horns.
  • Lights, including dynamo packs.
  • Mirrors and mudguards.
  • Cycle clips and dress guards
  • Panniers, luggage carriers and straps
  • Locks and chains
  • Pumps, puncture repair kits, cycle tool kits and tyre sealant
  • Reflective clothing jackets, pants, shoes, gloves, etc.

We strongly advise you to deal directly with the bicycle shop and not to get involve with a third party e.g. Raleigh, Bike2work or Bike to work Ltd.
These parties charge a 10% comission for using them we are listed on there web sites and will accept there vouchers but you may wait longer and get less. e.g. dept of education if you down load your bike to work form you sometimes will see there bank, tax, and vat details already printed on form if you let your bicycle shop fill in his bank, tax, and vat details instead you will get processed quicker and cheaper.

You cannot get a replacement bike through the scheme earlier than 5 years from date of previously availing of the scheme.

Can i buy a second hand bicycle?
No, as per the revenue requirements, the bicycle and equipment provided must be unused and not second hand.

Once the transaction is complete your bicycle shop wil look after all queries and warranty