Cycle to Work Scheme

The purpose of the scheme is to encourage employees to cycle to and from work by allowing the employer to purchase a new bicycle and new safety equipment for the employee. The employee then repays the cost in regular instalments from their gross salary. The employee is not liable to PAYE, PRSI or USC on their repayments. An employee can use the scheme once in every 4 years.  N.B. An employer does not have to participate in the scheme but if they do they must offer it to all employees. 

There are two limits for the scheme; 

  • New bicycles and related safety equipment max €1,250
  • New Pedelecs and ebikes and related safety equipment max €1,500

The scheme does not cover: 

  • motorbikes, scooters or mopeds
  • second-hand bicycles or equipment
  • bicycle parts or associated equipment

The scheme does cover: 

  • New bikes and pedelecs (electrically-assisted bikes that require some effort to propel)
  • Cycle helmets
  • Bells and bulb horns
  • Lights (including dynamo packs)
  • Mirrors
  • Mudguards and skirt guards
  • Cycle clips
  • Panniers, luggage carriers and straps
  • Locks and chains
  • Pumps
  • Puncture repair kits, cycle tool kits and tyre sealant
  • Reflective clothing
  • Bike reflectors

How to buy a bicycle under the scheme

  • Confirm with the employer they are operating the scheme and check requirements
  • Select a bicycle shop, if the employer has not chosen a specific shop
  • Select the bicycle and equipment and advise the employer
  • The employer pays the bicycle shop directly for the bicycle and equipment N.B. the employer can not reimburse the employee for the payment
  • Written agreement stating that the bike is for the employee’s own use and they will use it for what the Revenue Commissioners consider qualifying journeys: getting to and from work
  • Employer makes the salary deductions on agreed time frame up to max 12 months
The employer may decide not to charge the employee for the bicycle this is acceptable and non taxable up to the limits stated above, any amount above the limit is taxable.