Cycle to Work scheme
Benefits in kind
Employment taxes have become more complex and burdensome in recent times mainly due to Revenue changes in the tax treatment of Benefits-in- Kind (“BIK”). However there are some Revenue concessions available which can enable tax savings for both the employee and the employer.
Revenue issued a Guidance Document in December 2008 about the provision of Bicycles for Directors and Employees – Exemption from Income Tax in respect of Benefit in Kind. The purpose of this concession is to exempt employees from BIK arising from the purchase by their employer of a bicycle and related bicycle safety equipment, where the bicycle and equipment is used by the employee mainly for ‘qualifying journeys’.