Jack Chambers (Dublin West, Fianna Fail)
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Section 118(5G) of the Taxes Consolidation Act 1997 (TCA) provides for the Cycle to Work Scheme. This scheme offers an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and/or associated safety equipment for one of their employees (or directors) to use, in whole or in part, to travel to work. Associated safety equipment may include items such as helmets, lights, bells, mirrors and locks.

One of three thresholds applies to the amount of exempted expenditure. The applicable threshold depends on the type of bicycle purchased and includes related safety equipment. Since 1 January 2023, the Cycle to Work scheme applies to the first:

• €3,000 of expenditure in relation to a cargo or e-cargo bike;
• €1,500 of expenditure in relation to a pedelec or e-bike; or
• €1,250 of expenditure in relation to any other type of bike.

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

BIK is a charge to tax which 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/or related safety equipment is provided by an employer to either their director or someone in their employment.

It should be noted that section 118(5G) TCA does not oblige an employer to participate in the Cycle to Work scheme. The Cycle to Work scheme operates on a self-administered basis and relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation.

The Community Employment (CE) Scheme is an active labour market programme designed to provide eligible long-term unemployed people and other disadvantaged persons with an opportunity to engage in useful work within their communities on a temporary, fixed term basis. The scheme comes under the remit of the Department of Social Protection, their detailed procedures manual is available at the following link: .

Revenue has advised me that, where an individual is employed under a CE scheme they may avail of the Cycle to Work scheme where his or her employer operates the scheme, and the provisions of section 118(5G) TCA are met.

Comprehensive guidance on the Cycle to Work scheme can be found in Revenue’s Tax and Duty Manual Part 05-01-01g, available on their website at following link: .