Cycle To Work Scheme
The Cycle to Work Scheme is a tax incentive scheme which aims to encourage employees to cycle to and from work by enabling them to save up to 50% on the price of their bike and accessories.
Under the scheme an employer can pay upfront for an employee’s new bicycle and bicycle equipment, then the employee pays them back over a period of up to 12 months, via deductions from their gross earnings. Therefore the employee is not liable for tax, PRSI, levies or USC on their repayments, and can save money through these tax-breaks.
A step-by-step guide for the employee:
- Check if your employer will take part in the scheme.
- Come to Revolve Bike Shop and pick out your bike and any other accessories and equipment you may need; helmet, lights, clothing, pump etc. We will advise you which bike suits you best.
- All employees can purchase a bike and products up to the value of €1000 under this scheme. If your chosen bike is over €1000 you can pay the balance yourself.
- We will give you an invoice to hand to your employer.
- When your employer pays us we will contact you and you can pick up your bike and accessories.
- Your employer will deduct the cost of the bike from your gross wages over the coming year (individuals can negotiate duration of repayment with their employer but it must be no longer than 12 months).
- If you are in the higher tax bracket you save approximately 50%, meaning the repayments on a €1000 bike would be less than €10 a week. On the lower tax bracket you save approximately 30%, meaning the repayments on a €1000 bike would be around €13.50 week.
A step-by-step guide for employers:
- First of all decide if you want to take part in the scheme. The benefits for you are saving on employee PRSI, and having fit and happy staff. There are no down sides and no forms to fill out.
- If you offer the scheme to one staff member, you must allow all staff members to participate.
- When an employee brings an invoice to you from Revolve Bike Shop, you make payment to us by cheque or bank transfer.
- Deduct the invoiced amount from your employees’ gross wages over the coming year.
- Keep the aforementioned invoice and a record of the salary sacrifice on file.
The Bike to Work Scheme is of great benefit to everyone involved and couldn’t be simpler.
If you have any questions please give us a call on 0539483100 or drop into Revolve Bike Shop.
We have a huge range of bikes and accessories with something to suit everyone’s cycling style and needs.
With the Cycle to Work Scheme everyone wins; employees make big savings on new bicycles and accessories and employers save money on PRSI and get a healthier and more productive staff.