Commission on Taxation Report - Tax Relief on Bikes to Continue

Good news everyone! Was flicking through the report there when I saw this paragraph:

13.5 Benefit-in-kind exemption on employer-provided bicycles and associated safety equipment

Description
An exemption from an income tax benefit-in-kind charge and employer PRSI are available where an employer gives a bicycle and related safety equipment to an employee or director which is used to travel to work. There is a €1,000 limit on the cost incurred and the exemption can be claimed once in any five-year period. Employees’ salaries may be reduced without tax consequences to finance the cost of the scheme.

Conclusion
The benefits of the introduction of a tax relief scheme to encourage more employees to cycle to and from work can be seen in terms of lowering carbon emissions, reducing traffic congestion and increasing the fitness levels of those who take up the scheme. This scheme may have incentive effects in encouraging a shift from car transport and in helping to increase awareness of the merits of such a move. At the same time, we acknowledge that it is likely to involve a deadweight element as employees that are already cycling to and from work are those most likely avail of the scheme. On balance, however, we recommend that the scheme should continue having regard to the potential social and economic benefits which may arise.

Recommendation

8.79 The relief for benefit-in-kind and PRSI exemption on employer-provided bicycles and related safety equipment should continue.

http://www.irishtimes.com/focus/2009/taxreport/index.pdf

Lumen

BostonB

deadweight element

....puts cake down and backs away...

Ryaner

At the same time, we acknowledge that it is likely to involve a deadweight element as employees that are already cycling to and from work are those most likely avail of the scheme.

They really should do some surveys to see the feedback on it. I know in my place (and we are small), it got me back cycling along with a few other people.

Jumpy

BostonB wrote: »

....puts cake down and backs away...

*takes cake*

*eats cake*

RobFowl

Lumen wrote: »

It's great news, will make the property tax, water tax, carbon tax, loss of childrens allowance and tax relief on medical expenses all the easier to bear :rolleyes: