Cycle to Work Scheme

The Cycle to Work Scheme covers bikes and equipment up to €3,000. It is a tax incentive that encourages you to cycle to work.

Under the scheme, your employer pays for the bike and equipment. You pay them back through a salary‑sacrifice arrangement. You do not pay tax, PRSI or Universal Social Charge on these repayments.

Spending limits

Equipment the scheme applies to

How to pay for the bike and equipment

How often you can use the scheme

Choosing a bike

How to apply

Application forms

Cycle to Work Scheme HR Circular 058/2020 (PDF, 280 KB, 4 pages)

Spending limits

The scheme covers bikes and equipment up to €3,000 when bought from approved suppliers. You can use the scheme once every 4 years.

The spending limits are:

€3,000 for cargo bikes
€1,500 for e‑bikes
€1,250 for standard bikes

These limits apply to both the bike and safety equipment.

You can spend more than these limits, but anything above them is treated for income tax purposes as a benefit-in-kind - revenue.ie.

Equipment the scheme applies to

The scheme covers new bikes and safety equipment.

Safety equipment includes:

cycle helmets
bells and bulb horns
lights, including dynamo packs
mirrors and mudguards
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 pay for the bike and equipment

Choose your bike and equipment from an approved supplier - gov.ie.

The supplier invoices the HSE directly. The HSE pays the supplier and sets up a salary‑sacrifice arrangement, with the cost taken from your salary for up to 12 months.

Once the HSE pays the supplier, the supplier will contact you to collect your bike and equipment.

You cannot claim the tax exemption if you pay for the bike yourself. Your employer must pay for it. The bike and equipment must be bought at the same time from 1 supplier.

Repayments for the bike and equipment are deducted from your gross salary. This is your pay before income tax, PRSI, pension levies and Universal Social Charge are deducted. Repayments may be weekly, fortnightly or monthly, depending on your pay schedule.

The purchase agreement cannot be cancelled once the equipment is bought.

How often you can use the scheme

You can use the scheme once every 4 years. This applies even if you do not spend the full €3,000. The tax year in which you buy the bike or equipment counts as the first year.

Choosing a bike

Choose a bike and equipment from an approved list of suppliers - gov.ie.

How to apply

To apply, you should:

choose your bike and equipment from an approved supplier
fill out the application form
send the form to your local scheme coordinator
the supplier will invoice the HSE and contact you when payment is processed to arrange collection
repay the full amount within the calendar year you buy the bike