BIKE TO WORK SCHEME (Tax Free)
The Government is trying to encourage commuters to give up the car for shorter journeys. The idea is for people to cycle to work, reducing traffic congestion, improving fitness levels and reducing carbon dioxide emissions.
Bike to work in three easy steps
1. At MIKES BIKES you can choose your bike, clothing and accessories up to the value of €1,000.00. You can test any bike before you choose that special one.
2. We will give you a written quote with the bike, clothing and accessories you have chosen.
3. Bring the quote to your employer and they will organise the payment and you can then collect your new bike.
1. Your employer will then subtract the money from your salary over an agreed period of time (usually over a period of 6 months or a year).
2. Depending on your tax rate, you will have anything from 25% to 50% deducted off the price of the bike.
3. Directors, Sole Traders and the Self-employed can also avail of the Bike To Work scheme. This is usually done by making a payment from your business account and claiming the Tax refund when doing your end of the year accounts.
Who is eligible for the tax exemption?
Most employers will be happy to have their employees take part in this Scheme. They stand to lose nothing, as the State pays the Tax discount. The cost of the bike can be funded either directly by the employer, or through a salary sacrifice arrangement with the employee.
How does it work?
The employee chooses the bicycle and equipment he/she wants and the employer purchases the bike on his/her behalf. Tax relief is available on purchases up to a maximum value of €1,000.
What sort of equipment is covered by the scheme?
Tax relief is available on a wide range of cycling clothing and equipment. Basically, everything the cyclist needs to get out on the bike in any weather. This includes helmets, lights, locks, bells, mirrors, cycle clips, panniers, luggage carriers & straps, pumps, puncture repair kits, cycle tool kits, reflective clothing etc.