Cycle 2 work scheme

Tax-free limits

  • €3,000 for cargo and ecargo bikes
  • €1,500 for pedelecs and e-bikes
  • €1,250 for other bikes

Save up to 52%

Save up to 52% on the cost of a new bike and safety accessories via salary sacrifice.

Every 4 years

You are eligible to use the scheme once every four tax years.

Cycle-to-work scheme

The Cycle to Work Scheme is a tax incentive scheme set up by the Irish government to encourage employees to cycle to and from work instead of driving by enabling them to save up to 52% on the price of their bike and bicycle accessories. Your employer will also make savings on their PRSI contribution so it is beneficial to employees and employers alike.

WhatsApp


Under the scheme your employer can pay upfront for your new bicycle and bicycle equipment, then your employer can arrange a ‘salary sacrifice’ over an agreed time, not more than 12 months. If so, you give up an agreed amount of your gross salary to cover the cost of the bicycle. Therefore your Cycle to work repayment is not liable for tax, PRSI or the USC on your repayments (this means before income tax, PRSI, pension levies or Universal Social Charge are deducted), and save money through these tax-breaks.

A user-friendly 5 steps guide for employees:

  1. Check if your employer is part of the scheme. While participation is not mandatory for employers, if they do participate, they must offer it to all employees.
  2. Visit our shop and explore our range of bikes and accessories. We will assist you in selecting the perfect bike and any additional equipment you may need, such as helmets, lights, locks, clothing, etc.
  3. Once you have made your selection, we will promptly send you an invoice via email. Simply pass this invoice on to your employer.
  4. As soon as your employer pays us or provides a voucher or cheque, you can collect your bike and accessories from our shop.
  5. Your employer will deduct the bike’s cost from your gross wages over the upcoming year. The duration of repayment can be negotiated with your employer, but it must not exceed 12 months.

CYCLE 2 WORK SCHEME FAQ

Most popular questions about Cycle to Work Scheme.
You can also find more information here on Citizens information website.

The Cycle to Work Scheme, initiated by the Irish government, serves as a tax incentive program aimed at motivating employees to choose cycling as their commuting option over driving. By participating, employees can enjoy savings of up to 52% on the cost of their bikes and bicycle accessories. Notably, employers also benefit from reduced PRSI contributions, making it advantageous for both parties involved.

No, employers are not obligated to take the part of the scheme. However, if they offer it to one employee they have to offer it to all employees.

As an employee, you can use the scheme once every 4 years. The four-year span between tax breaks is counted by tax year. If you bought a bike anytime in 2024, you can buy a new bike and receive the next tax relief in January 2028.

You can save up to 52% of the retail cost based on your tax rate. The repayment made towards the Cycle to Work Scheme is exempt from tax, PRSI, and the USC (Universal Social Charge), providing a valuable tax break to employees while saving money in the process. Employers also benefit from reduced PRSI contributions.

  • Cycle helmets
  • Bells
  • Lights
  • Mirrors and mudguards
  • Cycle clips and dress guards
  • Panniers, luggage carriers and straps
  • Locks and chains
  • Pumps, puncture repair kits, cycle tool kits
  • Reflective clothing

Sky is the limit. Not from Revenue perspective though, therefore there are three categories and your scheme applies (only) to:

€3,000 on cargo and ecargo bikes
€1,500 on pedelecs and ebikes
€1,250 for other bikes

and whatever is above you’d need to pay the balance yourself.

Employers pay upfront for the purchase of a new bicycle and related equipment. Subsequently, they can arrange a “salary sacrifice agreement” over a maximum period of 12 months. Through this agreement, employees agree to forgo a predetermined portion of their gross salary to cover the bicycle’s cost.