Cycle to work- tax relief rates

ruskin · 23-05-2014 2:55pm #1

I am considering availing of a bike and equipment through the bike to work scheme. I work 9-5.30 and am on a wage that would technically put me into the lower tax bracket. However, I also work for myself and am registered for tax, and on this additional work, I am taxed at the higher tax rate. Can I avail of the higher relief through the bike to work scheme, since ultimately I pay tax at the top rate? If so, does anyone know how this is done?

clevtrev · 23-05-2014 3:21pm

Im sure there is a better authority on this than myself but my understanding is that you must apply through your employer and therefore they can only deal with what you are earning with them and therefore lower rate benefit. Also seSelf employed are ineligible as far as Im aware

Alan Shore · 23-05-2014 7:41pm

I guess if you think about it your P60 figure will be X lower than it would otherwise be therefore the amount of self employed income subject to tax at the higher rate will be X amount lower than it would otherwise be.

Therefore you get relief at your marginal rate of tax.

sue345 · 28-05-2014 2:01pm

Self-Employed workers cannot avail of the scheme as per https://www.cyclescheme.ie/employers/about-the-scheme

If you are in fact on the lower tax bracket you would make a saving of 31% over all (20% PAYE 4% PRSI 7% USC) by getting the bike through the Bike To Work scheme through your employer

Cycle to work- tax relief rates

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