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Cycle to Work Scheme

The Cycle to Work Scheme is a tax incentive encouraging employees to cycle to and from work.

Under the scheme, employers pay for bicycles and bicycle equipment for their employees.

The employee pays their employer back through a salary-sacrifice arrangement. The employee is not liable for tax, PRSI or Universal Social Charge on their repayments.

See: HR Circular 058/2020 Cycle to Work Scheme

Rates

The scheme covers bicycles and equipment up to the value of €1,250 from approved suppliers. You can use the scheme once in any 4 year period.

The €1,250 limit applies to the bicycle as well as safety equipment.

You can spend more than the limit, but any amount above €1,250 gets treated as a benefit-in-kind income tax charge.

Equipment the scheme applies to

The scheme applies to new bicycles and safety equipment.

Safety equipment includes:

  • cycle helmets which conform to European standard EN 1078
  • bells and bulb horns
  • lights, including dynamo packs
  • mirrors and mudguards to ensure that the rider’s visibility is not impaired
  • cycle clips and dress guards
  • panniers, luggage carriers and straps to allow luggage to be safely carried
  • locks and chains to ensure the cycle can be safely secured
  • pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs
  • reflective clothing along with white front reflectors and spoke reflectors

How to pay for the bicycle and equipment

The HSE pays for the bicycle and equipment and sets up a salary-sacrifice arrangement. This cannot be for more than 12 months. You select the equipment you wish to buy from an approved supplier The supplier invoices the HSE directly.

Once payment is processed, the supplier will contact you to arrange collection of the bicycle and equipment.

The tax exemption does not apply if you pay for the bicycle and equipment. Your employer must pay for the bicycle. The bicycle and equipment must be purchased at the same time from one supplier.

Repayment for the bicycle and equipment gets deducted from your gross salary. This is your salary before income tax, PRSI, pension levies or Universal Social Charge gets deducted. These deductions can be made weekly, fortnightly or monthly. This depends on your salary payment arrangement.

The purchase agreement cannot get cancelled once the equipment has been purchased.

How often you can use the scheme

You can use the scheme once in a 4 year period. This applies even if you do not purchase equipment up to the €1,250 limit. The tax year in which the bicycle or equipment is bought counts as the first year.

Qualifying journeys

You should use the bicycle and safety equipment mainly for qualifying journeys. This means the whole or part of a journey between your home and your normal place of work.

Choosing a bicycle

Choose a bicycle and equipment from an approved list of suppliers

If a Government-approved supplier has not been used by staff in a particular HSE area, it will need to be registered as an approved supplier on the HSE system. Contact your local Cycle to Work Scheme contact for more information about approved suppliers.

How to apply

The supplier invoices the HSE directly. Once payment is processed, they will contact you to arrange collection of the bicycle and equipment.

All repayments for the scheme must be completed within the calendar year of purchase.

Application forms available to download for 2021

The closing date for the scheme is Thursday 30 September 2021. All repayments for the scheme must be completed within the calendar year of purchase ie 31 December 2021. If the application form for your area is not available to download contact the representative for your area.

Contacts

HSE South (Cork and Kerry) - CHO 4
Email: Therese.McCarthy1@hse.ie
Tel: 021 492 3638

Longford, Westmeath, Laois, Offaly
Email: tracy.downes@hse.ie
Tel: 057 93 59832

Dublin South East, Dun Laoghaire, East Wicklow (Community Healthcare East CHO 6)
Email: Emma.collins2@hse.ie
Tel: (01) 274 4264

Dublin South, Kildare, West Wicklow (CHO 7)
Email: karen.mangan2@hse.ie
Tel: 045 988 310

Dublin North East
Email: joanne.donnelly@hse.ie

HSE Mid West
Email: mariana.quinn@hse.ie

HSE South East
Email: deirdre.walsh8@hse.ie
Tel: 056 778 4145

Galway, Mayo and Roscommon
Siobhan Mannion
Email: Financial.systemsMPH@hse.ie
Tel: 091 775892

Sligo, Leitrim and Donegal
Email:kevin.little@hse.ie
Tel: 071 9820434

Clare, Limerick and North Tipperary
Email: mairead.quinlivan@hse.ie
Tel: 061 483344

HSE Corporate and HBS
Email: David.Armstrong@hse.ie
Tel: 01 8817078

National HR help desk
Email: ask.hr@hse.ie
Tel: 1850 444 925

Page last reviewed: 20/11/2020
Next review due: 20/11/2023

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