If you provide a new bicycle or pedelec (bicycle equipped with an auxiliary electric motor) and associated safety equipment (e.g. helmet, lights, lock, etc.) to an employee or director who agrees to use the bicycle to travel to work, a taxable benefit-in-kind (BIK) will not arise, provided that:
- the employee has not received this non-taxable BIK from you in the past 4 tax years.
- the value of the purchase does not exceed €3,000 for cargo and ecargo bikes, €1,500 for pedelecs and e-bikes, and €1,250 for other bicycles.
- you, the employer purchases the bicycle / e-bike – the employee therefore cannot purchase the bike and claim a reimbursement.
- the bike is used primarily for work.
Please note: If the purchase exceeds the limit, only the portion up to the limit will be non-taxable.
More information on the Bike to Work Scheme can be found on this Citizens Information page.
If you want this to appear on the payslip of the employee, you can set this up on SimplePay as a Custom Company Contribution Item. Selecting the Company Contribution option when creating the Custom Item rather than Benefit will ensure that it is not taxed. More information about Custom Items is available on the following help page:
You may opt to recover the cost of the bike from the employee through a Salary Sacrifice. More information about Salary Sacrifices and our System Item for this is available on the following help pages: