Cycle to Work Scheme – Information for Employers

Last updated: April 4th, 2018

 

With Spring hopefully on the horizon at last, now may be an ideal time for employers to support their employees to cycle to and from work by availing of the Government’s Cycle to Work Scheme.

Cycling is a great way to get regular exercise and the benefits of a healthy lifestyle can have a positive impact on employee productivity, attitude and efficiency – and can reduce stress.

Employers can avail of the government’s Cycle To Work initiative and make bicycles and equipment available to staff as a work-related benefit.

The Cycle To Work Scheme is a Government-led tax incentive initiative designed to encourage employees to cycle to and from work.

Under the Scheme, participating employees themselves purchase a bicycle and bicycle equipment up to a value of €1,000.00.

The shop where the items were purchased then invoice the employer for the items, rather than the employee. Alternatively, the employer can purchase the items themselves and provide them to participating employees.

The employer then recoups the cost of the items from the employee by way of a 12-month salary sacrifice arrangement.

Employers should take steps to ensure an agreement in respect of this arrangement is signed by the employee to authorise the deductions being made.

The recoupment payments are made as part of payroll, but the deductions occur before the application of tax and PRSI. Therefore, the employee does not have to pay any tax on the items – thus benefitting the employee.

The Scheme can only be invoked where the equipment is being used in the majority for qualifying journeys – i.e. – the equipment is used for all or part of the employee’s journey to and from work.

Each employee can avail of the Scheme once every 5 years.

If an employer opts to partake in the Cycle To Work Scheme, they must make the Scheme available to all employees and directors at the Company on an equal basis.

Employers can include a policy in their Employee Handbook to inform staff of the Scheme – and the parameters of it. Employers must keep accurate records in respect of the Scheme.

The incentive applies only in relation to the value of items not exceeding €1,000.00. Employees are liable for tax on the value of €1,000.00.

If you have any questions in relation to the cycle to work scheme or any other benefits please contact the advice line on +353 1 886 0350

Book a call with a consultant

Complete the form below and a consultant will call you as soon as possible.

Book a call with a consultant

Complete the form below and a consultant will call you as soon as possible.

Latest Resources

Probationary periods and employment contracts affected by new rules

As January is a quiet time for many business owners, it can be a good time to do some HR jobs that have been put […]

Handling employee resignation and notice periods in Ireland

Employee resigning with documents and belongings
How to handle employee resignation and notice periods in Ireland From time to time, an employee resigns to pursue a career outside of your organisation. […]

Employer’s guide to the Organisation of Working Time Act

Employer’s guide to the Organisation of Working Time Act The Organisation of Working Time Act 1997. What does this legislation set out to do and […]

Nora Cashe

Peninsula

Nóra studied Law in Griffith College Dublin and qualified as a Barrister in 2008, practising in the area of Criminal law. She is also member of the Irish Employment Law Association.

Nora has extensive experience representing clients at Employment Tribunal hearings, Conciliation / Mediation meetings before both the Workplace Relations Commission and the Labour Court. 

Nóra is a member of the Irish Employment Law Association and engages with the WRC Adjudication Service as part of their stakeholder engagement forum.

Deiric McCann

Genos International Europe

Deiric McCann leads Genos International Europe – The EU division of a world-leading provider of emotional intelligence solutions. 

With over two decades experience at the highest levels of management, Deiric supports clients to develop the resilience, emotional intelligence, psychological safety and engagements of their employees.

Rhiannon Coyne

Graphite HRM

Rhiannon Coyne is a Senior HR Consultant at Graphite HRM and will be providing an overview of best practice on how to deal with complaints of bullying and harassment in the workplace. 

With a number of recent updates to employment laws, Rhiannon will take a closer look at employment equality and how it is interlinked to Health & Safety and what employers can learn from recent case laws.

David Begg

Workplace Relations Commission

David Begg was appointed Chairperson of the Workplace Relations Commission (WRC) in January 2021.

David is also a professor at Maynooth University Institute of Social Sciences. Mr Begg’s extensive history in the trade union movement included leading the ESB Officers Association and Irish Congress of Trade Unions, stepping away from the latter in 2001 to chair international aid agency Concern.

David Begg was also previously a director of the Central Bank of Ireland between 1995 and 2010.