is there a tax benefit for buying a bike ?

[holidayqueen]

Hi
I would like to buy a bike to cycle to work most days and do away with the need to bring my car. I heard that in the last budget there was some tax incentive to do so, can anyone explain it to me. I have been told that it is only if your employer does so for you is this correct?

 

[Graham_07]

If you go here and scroll down to "other income tax" you will find the "cycle to work scheme"

 

[holidayqueen]

Thank you just what I was looking for

 

[coleen]

I was thinking of this also and have looked at the link but it is still not clear to me as I am not sure of benfit of kind. Can you explain Do I just purchase what I want up to the value of €1000 and send the reciept to revenue or what? My employer will not be intrested in this if it costs him anything?

 

[CCOVICH]

I was thinking of this also and have looked at the link but it is still not clear to me as I am not sure of benfit of kind. Can you explain Do I just purchase what I want up to the value of €1000 and send the reciept to revenue or what? My employer will not be intrested in this if it costs him anything?

No. The employer must pay for the bike, the purchase will not qualify for tax relief otherwise.

If the employer does not want to carry the cost, then the amount can be reclaimed from the employee via salary sacrafice, i.e. your employer deducts the cost of the bike/equipment from your gross pay and so you receive the benefit of tax relief on the cost. In this way, there is no cost to the employer.

Note that there is no benefit in kind implication in this scheme.