tax incentive scheme to promote cycling to work. This covers the
purchase of a bicycle and related safety equipment for up to € 1000.
For those of you who might not have heard about the scheme yet, this
is how it will work in principle:
If an employer provides an employee with a bicycle (for free) for the
(main) purpose of cycling to work, this will be exempt from taxation
as benefit-in-kind for the employee.
If an employer provides an employee with a bicycle for the (main)
purpose of cycling to work, and the costs are to be covered by the
employee through a salary deduction, there will be no income tax or
PRSI to be paid for this amount (similar to the Travel Pass scheme),
so the employee can save up to almost 50% of the price (depending on
the individual tax level).
Employees can avail of this scheme once in a five-year-period.
For more detailed information on the Government's scheme, you can
visit the following links:
www.revenue.ie/en/practitioner/law/bik-exemption-for-bicycles.pdf
