The Cycle-to-Work scheme and E-Bikes

Earlier in the month, Donegal E-Bikes became an official supplier to the Cycle-to-Work scheme which allows workers to purchase a bike with a payment scheme that sees them pay for it, without tax, over a period of time. Unfortunately, the scheme only covers a cost of €1000, but this can still give you savings of up to €510. 

Under the scheme, your employer purchases the bike for you (in the case of an e-bike they will pay €1000 and you will have to pay the balance). This is followed by a "salary sacrifice" whereby you give up an agreed amount of your salary to cover the cost. This amount is not liable or tax, meaning the employee can save a considerable amount of money on the scheme.

To give an example, if an employee on the higher rate of tax of 51% (41% tax, 6% PRSI, 4% levies) buys the Ridgeback Electron F.H.D. which usually costs €1749, they will end up only paying a total of €1239 for the bike. €749 of that is upfront and the rest is payed over time. This is a considerable saving that makes buying an e-bike a lot more affordable and great value for money.

Employers aren't obliged to take part in the scheme, but the vast majority will. In order to sign up for the scheme, you must first contact your employer. To avail of the scheme, you should contact your employer to make sure that they will participate. They then have to purchase the bike and the salary sacrifice will follow.

If you want to know any more about the Cycle-to-Work scheme, or what savings can be made on a new e-bike, you can look at our Cycle-to-Work page or contact us and we'll do our best to help you out.