The Cycle to Work Scheme is a tax incentive scheme which aims to encourage employees to cycle to and from work. Under the 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. The employee is not liable for tax, PRSI or the Universal Social Charge on their repayments.
How does it work?
The scheme applies to newbicycles and pedelecs and related safety equipment.
Usually your employer pays the supplier for the bicycle and the equipment and sets up a ‘salary sacrifice’ arrangement from the employee's salary over an agreed time frame (max 12 months).