A lot of people in Ireland already know that cycling is suitable for their health and their wallets. It is less expensive than driving a regular car and helps you get through heavy traffic.
But even with these benefits, a major obstacle stops a lot of employees from getting started. That is the upfront cost of a new bike or e-bike.
The Cycle to Work Scheme can help with this obstacle. It makes buying a new e-bike much more affordable. But how does this scheme work and who can use it?
This guide will tell you everything you need to know about the Cycle to Work Scheme so you can decide if it is a good option for you to get to work every day.
What is the Cycle to Work Scheme?
The Cycle to Work Scheme Ireland is a government-supported scheme that lets you buy a new bike or e-bike without having to pay taxes on the money you spend. It supports greener commuting and encourages more people to cycle as part of their daily commuting.
You choose the bike, and your employer pays the supplier on your behalf. Then you pay this amount back through deductions from your gross salary. This means you can save a lot of money on the bike's full price by paying less in taxes.
How Does the Cycle to Work Scheme Work?
If you are not sure how to join the Cycle to Work Scheme, here are the simple steps that will inform you how it works:
Step 1: Find Out If Your Employer Offers The Scheme
Make sure that your workplace participates in the Cycle to Work Scheme. If they don't, ask if they plan to offer it in the future.
Step 2: Select Your Bike or E-bike
Visit cycle to work scheme shops and choose the bike or e-bike that works best for you. You can also choose any accessories like helmets, locks, high-visibility gear and lights etc.
Step 3: Employer Pays the Supplier
You do not pay the store directly. Your employer gets the bill and pays it for you.
Step 4: Sign the Deal
You will sign a short agreement that states the bike will only be used for qualifying trips to work.
Step 5: Repay through Salary Deductions
The cost is spread over a set period and deducted from your gross salary. To understand how much your monthly deductions might be, a Cycle to Work Scheme calculator Ireland can help you quickly estimate how much you will save.
Who Can Apply?
Your job status determines whether or not you can participate in the Cycle to Work Scheme. You can apply if you meet these requirements:
- You are a PAYE (Pay As You Earn) employee, whether full-time, part-time, or on a temporary basis.
- You are self-employed, but you also pay PRSI (Pay Related Social Insurance) as an employee.
- Your employer offers the scheme to staff (participation is voluntary for employers).
- You want to use the bike to get to work (the distance or frequency of your trips does not matter).
What You Can Buy Under the Scheme
The Cycle to Work Scheme includes a range of new bikes and safety gear. Here's a quick look at the different types of bikes you can buy and their spending limits.
The spending limits show how much you can claim for the bike and any accessories that qualify under the scheme:
|
Bike Type |
Benefits |
2025 Spending Limit |
|
City / Commuter Bike |
Ideal for short trips and urban commuting. |
€1,250 |
|
E-bike (Pedelec) |
Provides pedal-assist power and makes longer rides more manageable. |
€1,500 |
|
Cargo / E-cargo Bike |
Designed for carrying heavy loads or family transport |
€3,000 |
After you pick out your bike, you can add a variety of safety gear and other items to finish setting it up.
Accessories that can be eligible include:
- Helmets
- Lights
- Locks
- Bags or panniers
- Reflective Gear
- Pumps and repair kits
Keep in mind that all bikes and gear bought through the scheme must be new and bought at the same time. You can not use second-hand things. It makes sure that your daily trips start with a setup that is completely safe and reliable.
How often can you use the Cycle to Work scheme?
You can use the plan once every four years. The tax year counts the four-year cycle. If you bought a bike in 2021, you could apply again in January 2025.
The rule still applies if you have spent less than the maximum amount. A lot of workers keep track of when they last purchased the bike through this scheme so they can plan their next upgrade.
Benefits of the Cycle to Work Scheme for Employees
The Cycle to Work Scheme has many benefits that make getting to work easier and better for the environment. These benefits include:
-
Financial Benefits
You pay back the cost before tax, PRSI (Pay Related Social Insurance), and USC (Universal Social Charge), which can save you up to 52% on your bike and gear. This makes it easier to buy quality bikes and saves you money every month.
-
Health Benefits
Riding a bike every day improves your health and builds your stamina. It strengthens your heart and helps your body stay active. A short ride each morning can lift your mood and give you more energy for the rest of the day.
-
Environmental Benefits
Biking produces zero emissions and reduces air pollution. By cycling to work, you actively contribute to a cleaner and more sustainable commute.
Where to Buy Through the Cycle to Work Scheme?
Once you decide to join the scheme, the next step is picking a retailer that makes the process simple. Zingy could be a perfect solution for that. Our 100% Irish-owned retailer specialises in high-quality e-bikes and offers a smooth buying experience.
Our team helps you pick the right bike and accessories so you can get on the road quickly and start enjoying your daily commute.
Final Thoughts
The Cycle to Work Scheme Ireland is an easy way to save money and make your commute more enjoyable. You get rid of long lines of traffic and get a healthier and faster way to go to work.
Once you know how the scheme works, you can choose the right bike and start a routine that fits your lifestyle.
If you want expert guidance and a trusted Irish retailer, explore Zingy – offering a range of bikes that fit the scheme’s limits and suit your commute.