Cycle To Work Schemes

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.

Revolve Bike Shop participate fully in this scheme and are equipped to make the process simple and efficient.

By taking part in this scheme you can save up to 50% of the cost of your bike and accessories (savings are dependent upon the individual's tax bracket).

By paying for your bike and accessories out of your gross wages and spreading the cost over up to one year you can make incredible savings.

If you are in the higher tax bracket, you can save up to 52% of the cost of your bike and equipment.

If you in the lower tax bracket, you can save approximately 31% of the cost of your bike and equipment.

 

A step-by-step guide for the employee:

  1. Check if your employer will take part in the scheme. Employers do not have to take part, but if they do, they must do so for all employees.
  2. 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, whether you want comfort or speed, or both.
  3. All employees can purchase a bike and products up to the value of €1000 under this scheme.
  4. If you are in the higher tax bracket and you want to purchase a bike/accessories for €1000 you save approximately 50% , meaning it will only costs you approximately €500. With repayments spread out over a year this means your employer deducts about €40 a month (€10 a week) from your net wages. You can spend any amount up to €1000 and still get 50% off.
  5. Procure your invoice from Revolve Bike Shop and pass it on to your employer immediately.
  6. When your employer pays us we will contact you and you will be entitled to pick up your bike and accessories.
  7. 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).

 

A step-by-step guide for employers:

  1. 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.
  2. If you offer the scheme to one staff member, you must allow all staff members to participate.
  3. When an employee brings an invoice to you from Revolve Bike Shop, you make payment to us by cheque or bank transfer.
  4. Deduct the invoiced amount from your employees' gross wages over the coming year.
  5. Keep the aforementioned invoice and a record of the salary sacrifice on file.
  6. There are no forms to fill out or any need to inform the revenue commissioner.

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.