Provision of bicycles for directors and employees
The Cycle to Work Scheme allows you to purchase new bicycles and safety equipment for your employees. Items purchased under the scheme are not a taxable benefit-in-kind (BIK).
Items purchased under the scheme must:
- be made available to all employees and directors
- be used for qualifying journeys
- cost no more than €1,000 per employee (any excess is a BIK)
- be purchased by you (the exemption does not apply where an employee or director is reimbursed).
You can only avail of the scheme once every five years. If you spend less than €1,000 on an employee in a year, you cannot make up the difference in the remaining four years.
Bicycles and safety equipment purchased in these years are BIK regardless of cost. The tax year in which the bicycle is provided counts as the first year.
The benefit-in-kind exemption applies to pedal cycles, tricycles and pedelecs.
A pedelec means a bicycle or tricycle which is equipped with an electric motor
(with a maximum continuous rated power of 0.25 kilowatts) which cuts out when
a speed of 25 kilometers per hour is reached, or sooner if the cyclist stops
pedaling the bicycle or tricycle. The exemption does not apply to motorbikes,
scooters or mopeds.
Any queries on above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie