If you’re a contractor operating through an umbrella company or your own limited company, you can still benefit from the Bike to Work scheme, just like a regular employee. The scheme is designed to help people save money on commuting costs by purchasing a bike and equipment tax-free through their employer or their company.
What’s included
You can claim up to 52% on the following amounts tax-free, depending on the type of bike:
€1,250 for standard bikes.
€1,500 for e-bikes.
€3,000 for cargo and e-cargo bikes.
Eligible bicycles and equipment include:
- Pedal bikes and tricycles
- Pedelecs (e-bikes with a motor that cuts out above 25 km/h)
- Cargo and e-cargo bikes
- Safety gear like helmets (EN 1078), bells, lights, panniers, locks, tools, and more
- To qualify, the bike must primarily be used for commuting to and from work.
- Current tax-free limits (from 1 January 2023)
How often you can use the scheme
You can use the scheme once every four years. This applies regardless of how much you claim, and you cannot carry over any unused amount to a later purchase.
Important conditions
- The bike must be new: Second-hand bikes aren’t eligible.
- It must be used mainly for commuting to and from work.
- Your company must buy the bike directly. You can’t purchase it personally and get reimbursed.
- You’ll need to sign a declaration confirming it’s for commuting use.
The scheme works through salary sacrifice, meaning the cost is deducted from your gross (pre-tax) salary over 12 months.
Want us to help you find out what applies to you?
If you need friendly, expert financial advice and support, contact us on hello@fenero.ie or 01-6877400.
