Under the scheme an employer may provide an employee with a bicycle and safety equipment without an employee being liable for benefit in kind subject to a limit of €1,000. The scheme may be implemented under a salary sacrifice arrangement through the employee’s payroll. The full cost must be recovered within a period of twelve months or less. The employee can avail of this scheme once every five years.
The bicycle and safety equipment are exempt from tax therefore the employee or director will not be liable to income tax (at the marginal rate) employee’s PRSI or USC on the cost of the benefit.
You must use the bicycle and safety equipment mainly for qualifying journeys. This means the whole or part of a journey between your home and workplace.
The employer must purchase the bicycle and safety equipment. Please note that employers will not be able to reclaim VAT paid on the bicycle and or safety equipment.
Employers are not obliged to participate in the scheme however employers choosing to participate must make it generally available to all employers and or directors.