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How does an electric bike work?
One common misconception is that eBikes use a throttle to control your speed – this isn’t the case, as to be road-legal, an eBike must be pedal-assist – often referred to as a Pedelec. A good eBike will use a torque sensor to detect how much power you’re inputting at the pedals. It responds directly to this so that the more you put int, the more you get out. You choose how much you want the bike to assist you, and cycle just like a conventional bike.
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What if the e-bike I want costs more than the scheme limit?
The scheme allows up to €1,500 for e-bikes and €3,000 for cargo bikes. If your chosen bike costs more then you can pay the difference directly -
How does the payment process work?
Your employer purchases the bike on your behalf. You then repay the cost through salary sacrifice over up to 12 months, before tax deductions, which is how you save. -
Do I need to insure my e-bike?
While it’s not legally required, we highly recommend insuring your e-bike for peace of mind. We can advise you on the best insurance options available in Ireland. -
Am I eligible for the Cycle to Work Scheme?
If you’re an employee paying PAYE tax in Ireland, you can avail of the scheme. It’s open to full-time, part-time, and contract workers whose employers are willing to participate. The scheme is currently only available to PAYE employees -
How often can I use the scheme?
As an employee, you can use the scheme once every 4 years. The four-year span between tax breaks is counted by tax year. If you bought a bike anytime in 2020, you can buy a new bike and receive the next tax relief in January 2024. - What if my employer buys me a bike and doesn’t charge me for it?
That is acceptable. Under the scheme, you will not be taxed for benefit in kind if you receive a bike from your employer if the cost of the bike and equipment is not over the limit for the bike. - How do I save money on the Cycle to Work Scheme?
As an employee, you save on the costs of cycling to work because your repayments come out of your salary before tax, USC and PRSI are deducted. This means that someone on the highest rate of tax will save almost half of the cost of a new bike and equipment.
