How To Register for the Bike to Work Scheme?

If you’ve ever thought about getting a bicycle for your work commutes but the high costs got you worried, worry no more! The Bike to Work scheme is a cost-effective way to get a brand new bike through your employer. 

You save money on the bike and get a tax benefit.

But how do you register for the Bike to Work scheme? What do you need to apply, and more importantly, who can register for the scheme and enjoy a tax-free bicycle? In this guide, we’ll walk you through everything you need to know about registering for the Bike to Work Scheme.

So, let’s help you save some money and start healthy commuting.

Who Can Register for the Bike to Work Scheme?

While many employees can take advantage of the Bike to Work scheme, there are some restrictions on who can and cannot apply.
Here’s a quick breakdown of who can and cannot register for the Bike to Work scheme:

Who Can Register?

You can register for the Bike to Work scheme if you are:

1. Working for a registered employer.
2. Taxed through PAYE (Pay As You Earn).
3. Earning the national minimum wage, after deduction.

As long as you fulfil these three conditions, it doesn’t matter if you are a public or a private sector employee, you can avail of the Bike to Work scheme and enjoy its benefits.

However, if you are an employee on a fixed-term contract or on probation, you should consult with the HR department.

Who Can Not Register?

You are ineligible for the Bike to Work scheme if you are:

1. Not getting taxed through PAYE (Pay As You Earn).
2. Unemployed.
3. Self-employed.

There are a few exceptions and restrictions to the Bike to Work scheme too:

1. Self-employed individuals who pay themselves through PAYE are eligible for the scheme.
2. An employee can only use the Bike to Work scheme once every four years.
3. If you have multiple jobs, you can only use the scheme through one employer.

If you're unsure about your eligibility, the best thing to do is check with your HR department or payroll team. They can confirm whether your employer participates and if you meet the criteria.

What Do You Need to Register for the Bike to Work Scheme?

After confirming your eligibility, it’s time to start putting your application together. Here’s everything you’ll need:

1. Provide the supplier’s details and a quote/invoice for the bicycle you want and any accessories.
2. Sign the agreement that allows a monthly deduction from your paycheck.

Once all these things are in order, the process of registering for the Bike to Work Scheme should be easier.

How To Register for the Bike to Work Scheme?

Step 1 - Confirm Your Employer’s Participation

Participating in the Bike to Work scheme is not mandatory for every employer. And, as mentioned above, you cannot avail of the Bike to Work scheme if your employer doesn’t participate in the scheme.

So, the first step is to confirm your employer’s participation. If your employer isn’t offering the scheme, you can encourage them to sign up. There are no direct costs for employers, and they can benefit from PRSI savings.

On the other hand, if your employer is offering the scheme, ask if they are registered with any specific retailer or company and then proceed to step 2.

Step 2 - Choose Your Bike and Accessories

After confirming with your employer, it’s time to go shopping.

Most retailers accept the Bike to Work Scheme. When shopping, stick to the following spending limits:

1. €1,250 for regular bicycles.
2. €1,500 for pedelecs and e-bikes.
3. €3,000 for cargo and ecargo bikes.

These spending limits also apply to any accessories that you might want to buy. For example, if you buy a regular bike with a helmet, a lock, and some panniers, the total invoice should not exceed €1,250. 

Also, you can’t make multiple claims within the four years. Everything you need under the Bike to Work scheme should be covered in a single invoice.

Step 3 - Get a Quote or Invoice from the Retailer

Once you’ve decided on everything you want to buy, get a quote/full invoice from the retailer. This invoice should include: 

1. The bike model and price.
2. Any accessories you’re purchasing.
3. The total cost (including VAT if applicable).

Submit this invoice with your employer and wait for approval before moving on to step 4

Step 4 - Submit Your Application to Your Employer

Next, you’ll need to complete an application form or follow your employer’s registration process. Some employers have their own registration process, so you might want to discuss the details beforehand to avoid any delays. 

Usually, the application requires:

1. Your personal and work details.
2. The retailer's quote and banking details.
3. A signed salary sacrifice agreement.

Step 5 - Employer Pays the Retailer 

Once your application is approved, your employer will process the payment directly to the retailer. You don’t have to pay any upfront costs. Depending on how quickly your company processes payments, this step could take anywhere from a few days to a couple of weeks.

After everything goes through, you’ll get confirmation from the retailer and they will ship your bike.

Once all these steps are complete, the salary deductions will begin, and you can enjoy a healthier and more cost-effective way of commuting to work.  

Conclusion

With no upfront costs and significant savings, it’s a great way to make commuting healthier and more affordable. And now that you know how to register for the Bike to Work scheme, it’s time to get a brand-new bike and that huge tax benefit as well.

Just remember, you’ll have to wait four years before you can register for the scheme again, so choose a bike that suits your long-term needs.