Using a bicycle for your work commute is a cost-effective and eco-friendly alternative to driving your car through traffic and having to sit through rush hours every day. That’s why, in a bid to promote cycling to work, the Irish government introduced the bike-to-work scheme for employees.
And, if you are interested in the bike-to-work scheme, this article is for you. From how to apply for the bike-to-work scheme to everything you need to know about it, this article covers everything.
Let’s start with a quick explanation of what the scheme is and how it works.
What is the Bike to Work Scheme?
The bike-to-work scheme, also known as the cycle-to-work scheme, is an initiative by the Irish government that allows employees to get a bicycle and its accessories at a reduced cost.
Your employer purchases the bicycle and the accessories and deducts the cost from your salary for up to 12 months. You’ll not only get a bicycle, you’ll also get a tax benefit because the deduction is made from your gross salary.
Now, let’s take a look at how to apply for the bike-to-work scheme.
We’ve also listed everything the bike-to-work scheme covers and the major rules that you must follow when applying.
How to Apply for the Bike to Work Scheme? Step-by-Step Guide
Applying for the bike-to-work scheme is a 3-step process. Let’s discuss each of them in detail:
1. Check If Your Employer Participates in the Scheme
The bike-to-work scheme is not mandatory for every employer. So, before you try and apply for the scheme, check with your employer and confirm if they participate in the scheme.
2. Choose a Retailer & Choose Your Kit
The next step is to choose the bicycle you want and any accessories from a retailer. You can either find a retailer on your own or ask if your employer has contracted with any specific retailer.
Once you find the retailer, visit the shop (physical or online) and choose the bicycle and any other related equipment.
Check the next section to see what you can and can’t buy under the bike-to-work scheme. Also, follow the spending limit, or you’ll have to pay out of your own pocket.
3. Inform Your Employer & Collect Your Bike
After you finalise everything you need to buy, get a quote from the retailer and submit it to your employer. The employer will then buy the bicycle plus any accessories that you may have chosen.
Once all the payments are taken care of, you can pick up your bike or have it delivered from the retailer and start cycling to work.
While the bike-to-work scheme application form covers any and every legal aspect, the employer might still ask you to sign an agreement regarding the use of the bike and the payment terms.
What Can You Purchase Under the Bike to Work Scheme?
Under the bike-to-work scheme, employees can buy the following:
- Regular bicycles.
- Electric bikes/Pedelecs.
- Cargo bikes or electric cargo bikes.
- Cycle helmets.
- Bells and bulb horns.
- Lights (including dynamo packs).
- Mirrors.
- Mudguards and skirt guards.
- Cycle clips.
- Panniers, luggage carriers and straps.
- Locks and chains.
- Pumps.
- Puncture repair kits, cycle tool kits and tyre sealant.
- Reflective clothing.
- Bike reflectors.
The scheme does not cover second-hand bicycles/electric bikes. You have to buy brand new. Moreover, you can not buy motorbikes, mopeds, or scooters of any kind under the bike-to-work scheme.
There’s also a spending cap that you must follow:
- €1250 for a regular bicycle
- €1500 for an e-bike/pedelec
- €3000 for cargo and e-cargo bikes
The cost of your chosen bike and accessories should not exceed the spending cap. For example, if you buy a regular bicycle and some accessories, the total cost can not exceed €1250. If it does, you will have to pay the difference out of your own pocket.
Major Terms & Conditions of the Bike to Work Scheme
Before you apply for the bike-to-work scheme in Ireland, there are some terms and conditions that you should understand:
- Use for Work Commutes: The goal of the scheme is to encourage cycling as a mode of transport to and from work. So, you must use the bike for journeys to or from work. Although there are no strict checks, this is an undertaking on the bike-to-work application form and it should be followed.
- Must Follow RSA Rules: You must follow all the rules and regulations of the Road Safety Authority that apply to bike riders.
- Avail of the Scheme Once Every Four Years: Even if employees change jobs, they can only use the bike-to-work scheme once every four years.
- Outstanding Balance Will Be Deducted From Your Final Salary: If your employment comes to an end before the bike-to-work scheme repayments are complete, the employer can deduct any outstanding amount from your final salary.
Conclusion
Now you know how to apply for the bike-to-work scheme, what you can get under it, and what are some of the legalities that you must follow. All you have to do now is to choose what you want, fill in the application form, and get a brand new bike, tax-free!