Bike to work scheme – Exemption from tax
The exemption applies to the first €1,250 expenditure incurred by an employer in
connection with the provision of a bicycle and/or bicycle safety equipment in
respect of any one employee or director.
However, a higher exemption limit of €1,500 applies in the case of the provision of an electric bike (which may also
include bicycle safety equipment).
An employee or director can only avail of the exemption once in any 4-year
period (previously 5 years), commencing with the date the employee is first
provided with a bicycle or bicycle safety equipment.
An employer may incur expenditure in excess of the above limits. This does not
preclude the employee or director from availing of the exemption. However, it is
only the first €1,250 of the expenditure (or €1,500 in respect of electric bikes)
that is exempt from income tax.
Subject to qualifying conditions
Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie