2 Aug 2016
Bike 2 Work
Don’t forget that if you availed of the bike to work scheme in 2011 you are now eligible of spending up to €1000 again on a new bike and bike accessories! So pop down to us and we will look after getting you on the right bike for you and your needs!
Using the Bike to Work scheme, your employer can help you obtain a brand new bike and safety equipment worth up to €1,000. You can use a salary sacrifice arrangement to pay for the bike monthly and that means you can save up to 51% of the retail price of bike and equipment. Your employer also makes savings to encourage them.
##How it works?
*The scheme allows an employer to provide an employee with a bicycle and/or cycle safety equipment without the employee being liable for benefit-in-kind taxation. *The scheme may also be implemented under a salary sacrifice arrangement through the employee’s payroll (in a similar manner to the existing Travel Pass Scheme). Under such an arrangement, the employer provides the bicycle and/or safety equipment to the employee who agrees to forego or sacrifice part of his or her salary every pay period (weekly/fortnightly/monthly as the case may be), in order to cover the cost of the benefit. The full cost must be recovered within a maximum period of twelve months and the salary sacrifice will be reflected in the employee’s pay over that period. *Bikes will be owned by the employees. *Limit on the value of such purchases is €1,000 for each employee *The exemption may only apply once in any five year period in respect of any employee. *If employee is on the top rate of tax and PRSI a 51% saving can be made *The employer will also benefit in that employer’s PRSI is not payable on the cost of the bicycle and/or safety equipment.
Qualifying safety equipment
*Cycle helmets which conform to European standard EN 1078 *Bells and bulb horns *Lights, including dynamo packs *Mirrors and mudguards *Cycle clips and dress guards *Panniers, luggage carriers and straps to allow luggage to be safely carried *Locks and chains to ensure cycle can be safely secured *Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs *Reflective clothing along with white front reflectors and spoke reflectors.