TAX FREE BIKES in three simple steps
- Walk into Donnybrook Bikes and choose the bike, clothing and accessories that you want. We recommend you test ride the bike down our quiet avenue before you decide on it.
- We will give you a written quote with the bike, clothing and accessories you have chosen.
- Bring the quote to your employer and they will organise the payment and you can then collect your new bike.
- Your employer will then subtract the money from your salary over an agreed period of time (usually over period of 6 months or a year)
- If you are on the higher tax rate you will save a whopping 51% on the price of the bike. (i.e. if you have spent €1,000 approximately €510 will be subtracted)
- Individuals who are directors, self-employed or sole traders can also avail of the bike to work scheme. This is usually done by making a payment from your business account and your accountant will take of your tax credit.
Who is eligible for the tax exemption?
Employees are eligible for the exemption through the participation of their employer, who must operate the scheme. The cost of the bike can be funded either directly by the employer or through a salary sacrifice arrangement with the employee. If the bicycle is purchased directly by the employer, it can be claimed as a tax exempt benefit in kind. Where it is financed via a salary sacrifice, the employee saves on income tax, levies and PRSI.
How does it work?
The employee chooses the bicycle and equipment he or she wants and the employer purchases the on his or her behalf. Tax relief is available on purchases up to a maximum value of €1,000.
Is there a limit to the number of employees in a company who can participate?
What sort of equipment is covered by the scheme?
Tax relief is available on a wide range of cycling gear and cycling equipment– pretty much everything you would need. This list includes helmets, lights, locks, bells, mirrors, cycle clips, panniers, luggage carriers & straps, pumps, puncture repair kits, cycle tool kits, reflective clothing and reflectors.Once an employer agrees to participate, there is no limit to the number of employees who can avail of the scheme. However, the scheme can only be used by an employee once every five years.
Why is the scheme being brought in?
The Government is trying to encourage commuters to give up the car for shorter journeys. In Dublin, a city well suited to cycling, only 3-4% of commuters cycle to work. By contrast, in Copenhagen over one third of commuters get to work on the bike. More people cycling to work reduces traffic congestion, improves fitness levels and reduces our carbon dioxide emissions.
So pop into our store today for a free test ride, a quote and our expert advice.Don’t miss out on the huge savings available!
For more information please find these links useful.