Patrick Costello (Dublin South Central, Green Party)
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93. To ask the Minister for Finance the number of applications under the cycle-to-work scheme in 2022 and to date in 2023; if he will provide a breakdown between the number of bicycles, pedelecs, e-bikes, and e-cargo bikes; and if he will make a statement on the matter. [14058/23]

Patrick Costello (Dublin South Central, Green Party)
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94. To ask the Minister for Finance his views on expanding the reach of the bike-to-work scheme to beyond PAYE to everyone employers, sole-traders, students, jobseekers, disabled, unpaid home-work and the retired; and if he will make a statement on the matter. [14059/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 93 and 94 together.

Section 118(5G) of the Taxes Consolidation Act 1997 (TCA 1997) provides for the Cycle to Work scheme. This scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and associated safety equipment for an employee to use. There are three limits, depending on the type of bicycle purchased, which include related safety equipment, in whole or in part, to travel to work:

- the first €3,000 of expenditure on cargo and ecargo bikes

- the first €1.500 of expenditure on pedelecs and ebikes

- the €1,250 of expenditure for other bikes.

Safety equipment includes helmets, lights, bells, mirrors and locks but does not include child seats or trailers.

Under section 118B TCA 1997 an employer and employee may also enter into a salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a bicycle and related safety equipment.

BIK is a charge to tax that applies where an employer provides an employee with a benefit such as a bicycle, car or accommodation. Therefore, the Cycle to Work Scheme is only applicable where the bicycle and safety equipment is provided by an employer to either a director or someone in its employment and thus, where an employer-employee relationship does not exist, for example, in the case of self-employed, retired individuals, or those in receipt of social welfare payments, such individuals can’t qualify for the scheme. Likewise, salary sacrifice arrangements may only be entered into between an employer and a director or employee.

The Scheme operates on a self-administration basis, and relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. There is no notification procedure for employers involved. This approach was taken with the deliberate intention of keeping the scheme simple and reducing administration on the part of employers. Accordingly, there are no records centrally available on the number of people availing of the scheme or the types of bicycle purchased.

The expansion of any scheme creates a cost and that cost must be recovered elsewhere. For that reason, while the scheme is kept under review by officials, I have no plans at present to change the scope of the scheme.

Further information and guidance regarding the cycle to work scheme can be found on Revenue’s website at the link below. www.revenue.ie/en/jobs-and-pensions/taxation-of-employer-benefits/cycle-to-work-scheme.aspx