Dáil Éireann Debate, Thursday - 5 December 2013
75. Deputy Michael McGrath asked the Minister for Finance if he will set out in tabular form the number of participants who received tax relief and the annual cost under the cycle to work scheme in each year from 2007 to date in 2013; and if he will make a statement on the matter. [52422/13]
View answerThe cycle to work scheme came into operation on 1 January 2009. With a view to keeping the scheme simple and reducing administration on the part of employers, there is no notification procedure for employers involved. Accordingly, the Revenue Commissioners do not have statistics on the uptake of the scheme. The scheme operates on a self-administration basis, and relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. The purchase of bicycles and associated safety equipment by employers for employees or directors is subject to the normal Revenue audit procedure with the normal obligations on employers to maintain records (e.g. delivery dockets, invoices, payments details, etc.). The employer is also obliged to keep all salary sacrifice agreements entered into between the employer and employees/directors, together with all signed statements from employees/directors regarding use of the bicycles and safety equipment.
It was estimated at the time of the introduction of the scheme that approximately 7,000 employees would avail of it over the first five-year period of its operation at a cost of €0.4 million in a full year. However anecdotal evidence would suggest that the scheme has been considerably more successful than this. The exemption may apply only once in any five year period in respect of any employee.
