Bike to work in three easy steps with Tierney’s Cycles
- Come to Tierney’s, where we will help you choose your bike, clothing and accessories
- We will give you a written quote for the bike, clothing and accessories you have chosen
- Bring the quote to your employer, they will organise the payment and you can then collect your new bike
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- Your employer will then subtract the money from your salary over an agreed period of time (usually over period of 6 or 12 months)
- If you are on the higher tax rate you will only pay approximately half of what is subtracted (i.e. if you have spent €1,000 approximately €480 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
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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.
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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.
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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.
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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.
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Information correct as at 1st January 2013