A: A new scheme was introduced on the 1st January 2009 which enables an employer to purchase a bicycle and accessories on behalf of an employee tax free. The maximum cost of the bicycle and accessories is limited to €1,000.
No approval is required from Revenue to operate this scheme but normal records (e.g. invoices) should be kept. The bicycle must be used by the employee or director mainly for the purposes of work – e.g. travelling to and from work or travelling from one place of work to another. The employer is required to get the employee or the director to sign a form confirming that the bicycle is for his/her own use and will be mainly used for business purposes
Where an employer participates in the scheme it must be open to all staff on an equal basis.