Bike to Work Scheme

The Cycle to Work Scheme (commonly referred to as the Bike to Work Scheme) is a tax incentive scheme aimed at encouraging employees to cycle to work. Under this program, an employer can pay for a new motorcycle (including accessories) and the employee pays for it in regular installments from their gross salary. You won't have to pay tax, PRSI or Universal Social Charge on your refund.

Your employer will not participate in this plan. However, if they do, they must provide it to all their employees. If you are self-employed, you will not qualify for the Bike to Work program unless you pay PRSI as an employee in addition to your self-employment.

How much will I spend on the Bike to Work program and how often will I use it?

There are 3 sizes depending on the type of bike you buy. The range (including associated storage facilities) is: 

€3,000 for trucks and vans.

€1,500 for VAEs and electric bikes.

€1,250 for other bikes.

From August 1, 2020 to December 31, 2022 the limits for luggage and cars are €1,250 and €1,500 respectively. Note: A cargo bike is a bike with a special frame designed to carry heavy loads or passengers other than the rider. A bag or platform can be attached to this frame in front or behind the rider. An e-cargo bike is a bike with a pedelec design. A bicycle cannot be converted into a cargo bike by attaching a bag or trailer to it. The chassis must be designed to be heavy or heavy duty or passenger.

As an employee, you can avail the scheme once in every 4 years. Four years in the middle of taxes. If you have a bicycle with 2020, any month, you can buy a bike and benefit from tax return in January 2024. What equipment is covered by the machine to work?

The program covers the following items, which must be purchased new (unused): 

- New bikes and scooters (electric bikes require some effort to propel themselves) 

- Bicycle helmet 

- Bell and horn bulb 

- Lighting (including dynamo pack) 

- Camera 

- Mudguards and side skirts 

- bicycle clip 

- Panniers, racks and straps 

- Locks and chains 

- Fire escape 

- Puncture repair tools, bike tools and tire covers 

- Clothing is reflective 

- Bicycle turners 

Child seats, helmets and trailers are not included. This scheme does not cover used motorcycles, mopeds, scooters or bicycles or any other bicycle accessories or parts or accessories thereof.

How do I buy a bike under the Active Bike Scheme?

You should ask your employer if they plan and check their requirements. They may let you choose bikes and accessories from any store or only certain bikes from certain stores. If you are a civil servant or civil servant, the circular shop will be on the list of suppliers (pdf). You can choose your bike by going to a bike shop and choosing the bike and accessories you want to buy. Then, tell your employer this option. The employer must also pay the bike shop or carrier directly for the bike and equipment. It is important to note that your employer cannot reimburse you if you pay the fee. You must sign a written agreement stating that the bike is for personal use and that you will use it for what the tax authorities consider qualified travel: commuting to and from work.

Your employer takes a wage deduction over an agreed period of up to 12 months to repay the loan. These deductions can be made on a weekly, semi-monthly or monthly basis depending on your salary terms.

Please note that your employer must pay for the bike. The tax is not withheld if you pay for the bike and your employer pays you.