Cycle to work scheme - Pogo Cycles bike to work available

Cycle to work scheme

About This Scheme:

The Government Cycle to Work Scheme was created to allow employers the chance to offer significant discounts to their employees once every four years when they buy a bicycle or electric bikes to use primarily for traveling to work.

Although it is not required, the majority of employers do provide this scheme. The amount you save will vary depending on your income tax rate. The e-Bike is directly billed to the Employer, who purchases it on your behalf and deducts the reduced payment amount from your paycheck.

A tax incentive programme designed to encourage employees to bike to work is called the Cycle to Work Scheme (often referred to as the Bike to Work Scheme). The employee is required to pay back the cost of the new bicycle (together with any bicycle accessories) in regular installments from their gross salary under the scheme.

Your repayments are not subject to VAT, PRSI, or the Universal Social Charge.

Your employer is not required to participate in the programme. But if they do, they must make it available to every employee. If you work for yourself, you are not eligible to participate in the Bike to Work Scheme unless you also pay PRSI as an employee

 

How does the scheme function?

The government-sponsored bike to work programme makes it simple for employees to buy brand-new riding equipment tax-free through their employer. It's an affordable option to get the bike you desire, allowing you to commute to work in an environmentally friendly manner and improving your welfare, with no upfront costs.

 

Guidelines

  • How can I use the Bike to Work Scheme to save money?

Because your repayments are taken out of your paycheck before tax, USC, and PRSI are deducted, you as an employee save money on the expense of riding to work. This implies that a person paying the highest tax rate will save roughly half the price of a new bike and accessories.

 

  • How often can I use the Bike to Work Scheme and how much money am I allowed to spend on it?

The scheme is applicable to bicycles and related equipment worth up to €1,250 and to pedelecs or e-bikes and associated safety gear worth up to €1,500.

The scheme is open to employees once every four years. By tax year, the four-year gap between tax breaks is calculated. Regardless of the month, if you bought a bike in 2018, you could buy a new bike and take advantage of the following tax break in January 2022.

 

  • How do I purchase a bicycle through the Bike to Work Scheme?

You should find out if your employer participates in the scheme and review the requirements. You may be able to choose the bicycle and accessories from any store, or just certain bicycles from a selected set of stores. The bicycle store must be on the suppliers list if you work for the government or in the public sector.

By going to a bike shop and choosing the bike and accessories you want to purchase, you can choose your bicycle. Next, inform your employer of your decision. The bike shop or supplier will then get direct payment from the employer for the bike and equipment. It's crucial to understand that if you make the payment, your company cannot refund you.

To use the bike for what the Revenue Commissioners deem qualifying journeys getting to and from work you must sign a formal agreement declaring that it is for your own use and that you would only use it for those trips.

Then, in order to recover the costs, your company arranges wage deductions over a predetermined period of up to 12 months. Depending on how you are paid, these deductions may be made weekly, fortnightly, or monthly.

 

  • How can I receive an eBike through the Cycle to Work Scheme?

Although each Cycle to Work programme may have its own peculiarities, overall customer service with all suppliers is the same.

Step 1: Inform your employer.

Is your employer a participant in a cycle-to-work programme? You need to let them know that you want to use it if they are.

Your employer will be able to provide you with an employer code that you enter when buying the eBike and safety gear because they will have confirmed a price cap with the scheme provider.

Step 2: Select your items and receive your discount

Make a note of the entire cost, and then get in touch with the company running the programme, letting them know where you bought the product online.

Step 3: The provider of the scheme completes the task.

They will give us, or the eBike company of your choice, the information regarding your order, and they will then send it on its way to you.

 

  • Why are Cycle to Work programmes advantageous?

By providing an affordable (savings ranging from 25 to 39 percent) transportation alternative to their automobile, bus, or train, the programmes allow employers to establish an environmentally friendly social responsibility among their workforce.

Employees who lead more active lifestyles benefit from them. In addition to saving money on travel expenses, they will gain from an improvement in overall health, which can lower their risk of illness and boost their productivity at work.

The National Insurance Contributions paid by enterprises might be reduced by up to 13.8%.

 

 

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