The Cycle To Work scheme provides an exemption from tax on the first €1,000 of expenditure incurred by an employer in connection with the provision of a bicycle or safety equipment to an employee or director. The bicycle must be for the employee/director’s personal use in undertaking the whole or part of the journey to or from work. Safety equipment includes helmets, lights, bells, mirrors and locks but does not include child seats or trailers.
The scheme applies to a pedal cycle, tricycle and a pedelec. A pedelec means a bicycle or tricycle which is equipped with an electric motor (with a maximum continuous rated power of 0.25 kilowatts) which cuts out when a speed of 25 kilometres per hour is reached, or sooner if the cyclist stops pedalling the bicycle or tricycle.
It is assumed that the reference to “cargo bikes” by the Deputy means a bicycle specifically designed to carry a load. Such a bicycle would qualify under the cycle to work scheme, assuming all of the required conditions are satisfied.
It should be noted that the cost of a bicycle purchased under the scheme may indeed be more than €1,000, however the exemption from tax does not apply above this limit.
While schemes of this nature are reviewed in the context of the annual Budget and Finance Bill process I have no plans at present for any increase.