BIKE TO WORK SCHEME
How it works
- Employees choose an e-bike and receive an invoice by Green Bikes, by sending an email to: info@greenbikes.ie
- Employees give the invoice to the employer and ask them to arrange payment.
- Once received payment from the employer, then the employee can collect the new e-bike.
- The employer will deduct the net cost from the gross wage over an agreed period of time.
- The employer can contribute €1,500 towards the new e-bike – or €3,000 towards a cargo e-bike (check out the new Italwin e-Rider!)
- Employees can save up to 52% depending on their tax rate. Employers are guaranteed tax benefits such as PRSI savings.
- A win-win for everyone, cycle to work, no traffic, healthier employees and better business productivity.
The Cycle to Work Scheme (Bike to Work) is a government tax incentive designed to encourage more people to get on their bikes and cycle to work! Under the scheme an employer can pay for a new e-bike and the employee then repays the cost in regular instalments from their gross salary. An individual is be able to avail of the scheme every four-years.
Employees are not liable for tax, PRSI or the Universal Social Charge on repayments. Self-employed are not entitled to avail of the Cycle to Work Scheme unless pay PRSI as an employee in addition to self-employed work. Employees can save on the costs of cycling to work because repayments come out of the salary before tax, USC and PRSI are deducted.
The amount to save will depend on the rate of Income Tax. The employer is invoiced directly for the e-bike and buys the bike on the employee behalf, then deducts the reduced payment amount from the payslip. e.g. On purchasing an e-bike for €1200, you will save €594 off this price if on the 40% tax rate. So you have €606 deducted from your take home pay by your employer to pay for the e-bike.
If on the 20% tax rate, you save €353 and have €846 deducted from you take home pay by your employer to pay for the e-bike. Your employer may take this deduction from your payslip, in a lump sum, over a few months, or over a 12-month period.