Bike to Work Scheme at Jimmy's
The Bike to Work Scheme is a tax incentive scheme to encourage employees to cycle to work. Under the scheme, an employer can pay for a new bicycle (including bicycle accessories) and the employee then repays the cost in regular instalments from their gross salary.
The Basics
Using the Bike to Work scheme, you can avail of a brand new bike and safety equipment worth up to €1,250 on regular bikes and €1500 on Electric bikes
You can use a salary sacrifice arrangement to pay for the bike monthly
This means you can save up to 52% of the retail price of bike and equipment through personal tax and PRSI relief on your salary
How much can you save?*
| Higher rate taxpayer:40% Tax + 7% USC + 4% PRSI = 51% | ||||
| Cost of bike/ticket | €250 | €500 | €750 | €1000 |
|---|---|---|---|---|
| Tax relief saving | 51% | 51% | 51% | 51% |
| Tax relief saving | €128 | €255 | €383 | €510 |
| Net Cost | €122 | €245 | €367 | €490 |
| Standard rate taxpayer:20% Tax + 7% USC + 4% PRSI = 31% | ||||
| Cost of bike/ticket | €250 | €500 | €750 | €1000 |
| Tax relief saving | 31% | 31% | 31% | 31% |
| Tax relief saving | €78 | €155 | €233 | €310 |
| Net Cost | €172 | €345 | €517 | €690 |
| * This example is based on a single person who has no additional tax credits. The savings you will make may vary depending on your tax credits, reliefs, and exemptions; or if you are a public servant. * Please check your payslip to see the marginal tax rate at which you are paying PAYE, PRSI and USC. * Please note that these figures are an approximation and you should confirm them with your employer. | ||||
Get Started
3 Simple Steps:
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3
Get a Bike to Work invoice:
Got a question for us?
The friendly experts at Jimmy's Bike Shop can answer any questions you have related to bike sales, servicing, repairs and the Bike to Work Scheme.
