Introduced in 2011, the ‘Cycle To Work Scheme’ has been a universal success with hundred’s of thousands of people availing of the scheme. In 2014, more bicycles (91,000) were sold in Ireland than cars (91,732). Under the scheme, an employer purchase the bike and accessories and the employee pays back through a salary sacrifice arrangement of up to 12 months. The employee is not liable for tax, PRSI or the Universal Social Charge on their repayments. Not only can users of the scheme get a bike and all the accessories at half price, they can also knock hundreds- if not thousands of Euro off the cost of their commute.
So how does the scheme work and how does someone avail of it? We’ve put together this handy guide to answer many of the frequently asked questions
How do I avail of the scheme?
First thing you’ll need is a quote from ourselves or some other bike shop. You can get this quote by two ways. Visit the store and with the advice from our expert sales team identify a bike that suits your requirements. Our sales team will then generate a quote which you will then submit to your employer. If you are unable to visit the store, you could visit our online store. Click on the bike you like and then click on the green tab which reads “Buy Through Cycle To Work” . A quote will be emailed to you, which you can submit to your employer for approval
How long does the process take?
Depending on which system your employers uses, it can take a couple of weeks for the process to go through. Check with your employer before applying for the scheme, as some employers only allow their employees avail of the scheme during certain times of the year. If you don’t want to wait that long, you can pay for the bike upfront and we will refund that amount after we’ve received payment from your employer.
Are there any rules to the scheme?
You can only avail of the scheme every 5 years. The bike you are purchasing must be brand new and you have a limit of €1,000
How much can I save if I use the scheme?
Depending on which tax bracket you are in, you can save up to 52% on the value of the bike and accessories.
What if the bike I choose is more than €1,000
If the bike is more than a €1,000, you will have to make up the difference yourself. One way of making up the difference is by trading in your old bike. The value of your old bike will help reduce the cost of your new one.
How often can I avail of the scheme?
As already mentioned, you can only avail of the scheme every 5 years. The year you bought the bike counts as the first year. So, if you availed of the scheme in 2014 or before then (regardless of the month), you are able to avail of the scheme in 2019
Can I buy a used bike (second hand bike) under the scheme?
No, as previously mentioned the bike you are purchasing must be brand new
Can I purchase an E-bike under the scheme?
Yes, E-bikes can be purchased under the scheme as they are bicycles which require some effort from the cyclist. The scheme does not cover motorbikes, scooters or mopeds.
Can self-employed people avail of the scheme?
Unfortunately self employed people are not eligible for the scheme, unless they are paying PRSI as an employee in addition to their self-employment
What happens if I leave my job before I’ve paid back the value of the bike?
If you leave your job before you have paid back the full amount, you will be required to pay the outstanding balance in your last pay cheque.
Cycle SuperStore is Ireland’s largest Cycle to work scheme provider. We are cycle to work partners for leading companies like Eir, BT and Uniphar. Our Cycle To Work road shows visits 100’s of companies each year. New for 2019, is our E-bike demo events. We can visit a company and allow employees test ride e-bike and experience the benefits of them. if you would like more information about our Cycle To Work road show or would like to reserve a date, email marketing@cyclesuperstore.ie
