Cycle to Work Scheme

From 1 January 2009, the provision of bicycles and associated safety equipment by employers to employees and directors who use the bicycles wholly or mainly for travelling to and from work or between work places will be treated as a tax-exempt benefit in-kind.

This tax exemption may only apply once in every 5-year period in respect of any one employee/director. The provision of bicycles/safety equipment must be generally available to all employees and directors. There will be a limit of €1,000 on the amount of expenditure an employer can incur in respect of any one employee/director. The scheme may also be implemented via salary sacrifice arrangements, whereby an employee agrees to forego part of her or her salary to cover the costs associated with the purchase of the bicycle and associated safety equipment. Where such salary sacrifice arrangements are implemented they must be completed over a maximum period of 12 months and the maximum amount that can be forgone is €1,000.