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Cycle to Work Scheme

The Cycle to Work Scheme covers bicycles and equipment up to €3000. The scheme is a tax incentive encouraging you to cycle to and from work. Under the scheme, employers pay for bicycles and bicycle equipment for their employees. You pay your employer back through a salary-sacrifice arrangement. You are not liable for tax, PRSI or Universal Social Charge on your repayments.

There are 3 limits, depending on the type of bicycle you purchase:

  • €3000 on cargo and ecargo bikes
  • €1500 on pedelecs and ebikes
  • €1250 for other bikes

HR Circular 058/2020 Cycle to Work Scheme (the limits outlined in the circular have increased as set out above to a maximum of €3000).

Rates

Equipment the scheme applies to

How to pay for the bicycle and equipment

How often you can use the scheme

Qualifying journeys

Choosing a bicycle

How to apply

Application forms

Rates

The scheme covers bicycles and equipment up to the value of €3000 from approved suppliers. You can use the scheme once in any 4 year period.

Under the revised scheme in 2023, the limit on allowable expenditure increased to €3000 which applies to cargo and ecargo bikes. A limit of €1500 applies to pedelecs and ebikes. The limit is €1250 for other bicycles.

The limits outlined apply to the bicycle as well as safety equipment.

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

How to pay for the bicycle and equipment

How to apply

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 €3000 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. Employers do not have to monitor this.

Choosing a bicycle

Choose a bicycle and equipment from an approved list of suppliers.

How to apply

  • complete an application form
  • choose a bicycle and equipment from an approved supplier
  • send the completed application form to your local scheme co-ordinator

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

Download an application form for your area.  Complete the application form in full. The form must be signed by you and your line manager.

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