This is a Government initiative that enables your employer to buy a bicycle and bicycle accessories for you, without you being liable for benefit in kind taxation. For a tax payer at the top rate, this equates to a minimum saving of up to 51% on the cost of a new bike.

In addition to the bike, the scheme covers a range of equipment such as helmets, lights, locks, bells, mirrors, cycle clips, panniers, luggage carriers & straps, pumps, puncture repair kits, cycle tool kits, reflective clothing and reflectors.

Yes, if the total value of the purchases is over €1,250 (or €1500.00 for E-Bikes), the difference is subject to benefit in kind taxation.

No, participation in the scheme is voluntary and it is up to your employer. However, where an employer does agree to implement the scheme, it must be offered to all employees on an equal basis.

The scheme is very simple for companies to operate and involves no return to Revenue or need for third party involvement. Once the employee has selected their bike and approved accessories they will bring an invoice from the shop to the employer. The maximum amount this invoice can be for is €1250.00 for all bikes except E-Bikes, for which a higher limit of €1500.00 applies but there is no lower limit to avail of the scheme. The employer should have the employee sign a salary deduction form for the amount of the invoice in full and agree a term for repayment (no more than 12 months). A deduction for this agreed amount should be set up on the business payroll system from this employees Gross Pay before tax. This would be similar to a pension deduction. Once the salary deduction form has been signed the company should pay the shop for the bike. The employee will benefit from full tax relief on the deduction and the employer will recoup the full amount the business has paid out on the employees behalf. The business must not reclaim the VAT element of the Invoice (which must be shown separately on the invoice) as the bicycle does not represent supplies to the business. The full amount including VAT will be repaid to the company via the salary deduction. Altitude is happy to offer advice to any business or employer looking to offer the scheme. By dealing directly with the shop, your employees will gain all the benefits of being cash customers. Using third party voucher companies will remove this benefit as the shop will have to pay a commission to these third party providers.