The Cycle to Work Scheme lets you buy a new bike and safety equipment through a salary‑sacrifice arrangement. You do not pay tax, PRSI or USC on the repayments. The scheme covers bikes and equipment up to €3,000.
What you can buy under the scheme
How to pay for the bike and equipment
How often you can use the scheme
Spending limit
The spending limit depends on the type of bike you buy. The limit applies to the bike and safety equipment together.
- €3,000 for cargo bikes
- €1,500 for e‑bikes
- €1,250 for standard bikes
You can spend more than the limit, but anything above it is treated as a taxable benefit in kind.
What you can buy under the scheme
You can use the scheme to buy a new bike and approved safety equipment.
Safety equipment covered by the scheme
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 the scheme works
You buy the bike through a salary‑sacrifice arrangement. This means the cost is taken from your salary over an agreed period. You do not pay tax, PRSI or USC on these repayments.
You must buy the bike from an approved supplier - gov.ie.
The supplier will invoice the HSE directly.
How to pay for the bike and equipment
Your repayments are taken from your salary over the agreed repayment period. You must complete all repayments within the same calendar year.
If you leave the HSE before the repayments are finished, the remaining balance will be taken from your final salary.
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.
Example: If you bought a bike in 2024, you can apply again in 2028.
How to apply
Follow these steps to apply for the scheme:
- Choose a bike and safety equipment from an approved supplier - gov.ie.
- Complete the application form for your area.
- Send the form to your local scheme coordinator.
- When approved, the HSE will pay the supplier.
- The supplier will contact you when your bike is ready for collection.
- Salary‑sacrifice repayments will begin on your payslip.
Important rules
- You cannot claim a tax exemption if you pay for the bike yourself. The HSE must pay the supplier.
- The bike and equipment must be bought at the same time from 1 supplier.
- You must repay the full amount within the calendar year you buy the bike.
- The purchase agreement cannot be cancelled once the equipment is bought.
Scheme circular
Cycle to Work Scheme HR Circular 058/2020 (PDF, 280 KB, 4 pages)
Application forms
Download the application form for your area and complete it in full. You and your line manager must sign the form.