Tax Free Cycling
The scheme is a government initiative to encourage people to cycle and therefore cut down on the amount of vehicle congestion on the roads. The by-product of this for you is that cycling is cheaper, faster, healthier and better for the environment.
How does it work?
The bike scheme covers bicycles and accessories up to a maximum cost of €1,000. The bicycle must be purchased by your employer (who re-coups this from your gross income) but the scheme can operate either with your employer bearing the full cost of the bicycle, or by way of a salary sacrifice agreement in which you pay for it, tax free, over 12 months.
How to get started
If your employer decides to take part, they buy the bike and equipment on your behalf, it’s between you and your employer to decide whether they buy the bike outright for you or whether you pay for it through a ‘salary sacrifice’. Either way you save on tax.
The scheme is flexible in that your employer doesn’t have to specifically notify the Revenue Commissioners that you’re availing of the scheme and there are no Government forms to fill out. However, your employer does have to maintain the normal records such as invoices and payment details associated with buying the bike.
So its a win win situation for you and your boss.Why not drop in to the shop and have a look around? We will give you the best advice possible for all your cycling requirements.