Written answers
Wednesday, 7 May 2025
Department of Finance
Cycling Policy
Albert Dolan (Galway East, Fianna Fail)
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104. To ask the Minister for Finance the number of applications under the cycle-to-work scheme in 2024, and to date in 2025; 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. [22244/25]
Albert Dolan (Galway East, Fianna Fail)
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105. To ask the Minister for Finance his views on expanding the reach of the bike-to-work scheme beyond PAYE to include everyone, employers, sole-traders, students, jobseekers, the disabled, unpaid homework and the retired; and if he will make a statement on the matter. [22245/25]
Cormac Devlin (Dún Laoghaire, Fianna Fail)
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115. To ask the Minister for Finance the number of cycle to work scheme applications reported to Revenue from 2020 to 2024; and if he will make a statement on the matter. [22506/25]
Cormac Devlin (Dún Laoghaire, Fianna Fail)
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116. To ask the Minister for Finance the number of cycle to work scheme applications from the Houses of the Oireachtas reported to Revenue from 2020 to 2024; and if he will make a statement on the matter. [22507/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 104, 105, 115 and 116 together.
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 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 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.
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. 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 can only be entered into between an employer and a director or employee.
Furthermore, the scheme operates on a self-administration basis. Relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. As such, there is no application or 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 available on the number of people availing of the scheme or a breakdown of the types of bicycle purchased. My Department does, however, include tentative estimates of the number of claims and revenue foregone in the annual Tax Expenditures Report. The estimates for the years 2020 to 2023 are outlined in the table below. The Tax Expenditure Report for Budget 2025, which will be published later this year, will include an estimate for 2024, however there an estimate for 2025 will not be published until 2026.
Year | Estimated Number of Claims |
|---|---|
2020 | 22,000 |
2021 | 25,000 |
2022 | 25,000 |
2023 | 25,400 |
2024 | 25,400 |
The Programme for Government 2025, "Securing Ireland's Future", contains a commitment to, within the lifetime of this Government, conduct a review of the Cycle to Work scheme to boost take-up among all workers. The Terms of Reference of the review of the scheme will be considered in due course, however it may include examination of possible options to extend or restrict the current scheme or to complement or replace it with a direct expenditure measure.
As the Deputies will appreciate, any proposals for the introduction or amendment of tax reliefs must be assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear the importance that any policy proposal which involves tax expenditures should only occur in limited circumstances. In particular, they provide that a tax-based incentive should only be considered where it would be more efficient than a direct expenditure intervention.
Furthermore, it should be noted that any decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances and that the expansion of any tax expenditure measure creates a cost and that cost must be recovered elsewhere.
Cormac Devlin (Dún Laoghaire, Fianna Fail)
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106. To ask the Minister for Finance the number of cycle to work scheme applications processed by his Department and its agencies, affiliated agencies or subordinate agencies, each year from 2020 to 2024; and if he will make a statement on the matter. [22321/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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The Cycle to Work scheme was introduced in 2009 to encourage the use of bicycles for travel to and from work. Section 118(5G) of the Taxes Consolidation Act 1997 (TCA 1997) provides for this scheme. This scheme provides an exemption from benefit-in-kind where an employer purchases a bicycle and associated safety equipment for an employee. 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. Where a bicycle or safety equipment is purchased under the Cycle-to-Work scheme or through a salary sacrifice arrangement, certain conditions must be met. Further guidance regarding the Cycle-to-Work scheme and salary sacrifice arrangements can be found on Revenue’s website.
The Cycle-to-Work scheme is available to all staff in my Department and is centrally administered for my Department by the National Shared Services Office (NSSO).
The NSSO has provided the information in the table below outlining the number of applications approved for staff in my Department for the years requested.
| Year | No of approved applications |
|---|---|
| 2020 | 12 |
| 2021 | 15 |
| 2022 | 10 |
| 2023 | 11 |
| 2024 | 19 |
| 2025 | 2 |
The bodies under the aegis of the Department have provided the requested information as follows:
Office of the Comptroller & Auditor General
| Year | Number of approved applications |
|---|---|
| 2020 | 3 |
| 2021 | 5 |
| 2022 | 5 |
| 2023 | 5 |
| 2024 | 3 |
| Year | Number of approved applications |
|---|---|
| 2020 | 108 |
| 2021 | 122 |
| 2022 | 92 |
| 2023 | 90 |
| 2024 | 119 |
Financial Services and Pensions Ombudsman
| Year | Number of approved applications |
|---|---|
| 2020 | 1 |
| 2021 | 6 |
| 2022 | 1 |
| 2023 | 5 |
| 2024 | 3 |
| Year | Number of approved applications |
|---|---|
| 2020 | 0 |
| 2021 | 1 |
| 2022 | 0 |
| 2023 | 0 |
| 2024 | 0 |
National Treasury Management Agency
The National Treasury Management Agency assigns staff to Home Building Finance Ireland,
the National Asset Management Agency and the Strategic Banking Corporation of Ireland.
| Year | Number of approved applications |
|---|---|
| 2020 | 53 |
| 2021 | 42 |
| 2022 | 32 |
| 2023 | 49 |
| 2024 | 44 |
| Year | Number of approved applications |
|---|---|
| 2020 | 156 |
| 2021 | 213 |
| 2022 | 130 |
| 2023 | 133 |
| 2024 | 148 |
| Year | Number of approved applications |
|---|---|
| 2020 | 0 |
| 2021 | 1 |
| 2022 | 0 |
| 2023 | 2 |
| 2024 | 0 |
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