Question
I bought a bike under the Cycle to Work tax scheme in
December 2013. The bike was stolen last week. Can I use the scheme again when I
buy a replacement bike?
Answer
The Cycle to Work Scheme is a tax incentive scheme which
aims to encourage employees to cycle to and from work. Under the scheme,
employers can pay up to €1,000 for a bicycle and bicycle equipment for each of
their employees. The repayment for the bicycle and equipment is then deducted
from your gross salary (this means before income tax, PRSI or the Universal
Social Charge are deducted) over a period of up to 12 months.
You can only avail of the scheme once in a five-year
period. The tax year in which the bike is purchased is counted as the first
year. So, if you used the scheme in 2013 (regardless of the month), you can use
it again if you want to buy another bike in 2018 (from January).
You must use the bicycle and safety equipment mainly for
qualifying journeys. This means all or part of your journey to and from work.
If you buy a bike in 2018, you cannot get another bike
under the Cycle to Work Scheme until 2023.
If you are concerned about another theft you could insure
your new bike under your household insurance policy or you could use a special
cycle insurance scheme.
Further information is available from the Citizens
Information Service below.
Know Your
Rights
has been compiled by Boyle Citizens
Information Centre which provides a free and confidential service to the
public. Tel: 0761 07 6330
Address:
Elphin Street, Boyle, Co. Roscommon
Information
is also available online at citizensinformation.ie and from the Citizens
Information Phone Service - 0761 07 4000