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When Can I Avail of the Cycle to Work Scheme Again?

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Under the rules of the cycle to work scheme an employee may avail of the scheme once every five years. As the scheme was introduced in 2009, employees are now eligible to use the scheme again. 


 Section 118B(2)(a)(iii) TCA 1997 includes the provision

of a bike under Revenue approved salary sacrifice agreements and makes reference to a bike provided to an employee etc which is exempt from tax by virtue of Section 118(5G)(c) TCA 1997.  As discussed, in accordance with section 118(5G)(c) TCA 1997 which contains the 5 year rule in relation to the provision of a bike, the exemption from tax may not be availed of more than once in any period of 5 consecutive tax years, commencing with the year of assessment in which the director or employee is first provided with the bicycle or bicycle safety equipment.  
 
Therefore, it is when the bike is provided rather than when salary sacrifice commences or ceases that dictates when the employee can again avail of the scheme, e.g. if the employee is provided with a bike in January 2013 or December 2013, the provision would be available again from the 1st of January 2018 ( 2018 tax year) as a period of 5 consecutive tax years is done.
 
Basically what the above is saying, is that if a company opened the scheme in the 2009 tax Year, no matter when they opened in that year, their staff can avail of a new bike from January 2014.
If you'd like us to explain this to you in a bit more detail you can contact us and our friendly staff will be happy to help you.  

Last Updated ( Tuesday, 14 January 2014 12:07 )