How does it Work?
The Bike 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 bikes and bike equipment for their employees and the employee pays it back through a salary sacrifice arrangement of up to 12 months.
The employee is not liable for tax, PRSI, levies or the Universal Social Charge on their repayments.
It’s a great way to introduce yourself to the world of cycling, get fit, and do your bit for a greener environment!!
Contact us here at Westport Bikes and we will help make the process as easy as we can.
If you want more detail before you contact, click here
New 2023 Bike to Work Rates Explained
As part of the 2022 Finance Bill the government has announced an increase to the limit for Cargo Bikes in the revised Bike to Work Scheme. Individuals are now able to receive an allowance of up to €3,000 towards the purchase of a Cargo bike.
How much can I spend on the Bike to Work Scheme, and how often can I use it?
There are 3 limits depending on the type of bike you bought. The limit (including related safety equipment) is:
€3,000 for cargo and e-cargo bikes. (NEW)
€1,500 for pedelecs and e-bikes.
€1,250 for other bicycles.
What is a Cargo Bike?
The definition of a cargo bike is contained in Section 8 of the Finance Bill 2022.
This provides that “cargo bicycle” means a bicycle with a special purpose frame which has been designed to carry large or heavy loads, or passengers other than the rider, by means of a bulk storage capacity container or platform integrated into, or affixed to, the frame of the bicycle, in front of or behind the rider.
Cargo bikes can be applied for through the Cycle to Work Scheme from the 1st of January 2023. Contact us now at Westport Bike Shop for more information!
How often can I use the Cycle to Work Scheme?
As an employee, you can use the scheme once every 4 years. The four-year span between tax breaks is counted by tax year. If you bought a bike in 2020, regardless of the month, you could buy a new bike and avail of the next tax relief in January 2024.
What Equipment is Eligible
- New bikes and tricycles
- New electric bikes
- Cycle helmets
- Bells and horns
- Lights (including dynamo packs)
- Mudguards and skirt guards
- Cycle clips
- Panniers, luggage carriers and straps
- Locks and chains
- Puncture repair kits and tool kits
- Reflective clothing
- Bike reflectors