Dáil Éireann Debate, Tuesday - 9 June 2020
42. Deputy Catherine Murphy asked the Minister for Finance the number of persons that have availed of the cycle to work scheme since it was introduced by year; his plans to further enhance the scheme or modify it in 2020 and or 2021; the date on which the €1,000 threshold was reviewed; his plans to increase or decrease the threshold; and if he will make a statement on the matter. [9973/20]
View answer62. Deputy Neasa Hourigan asked the Minister for Finance his plans to roll out the bike to work scheme to the self-employed in view of Covid-19 related increase in cycling; the estimated cost of extending the bike to work scheme to the self-employed; and if he will make a statement on the matter. [9993/20]
View answerI propose to take Questions Nos. 42 and 62 together.
I am advised by Revenue that section 118(5G) of the Taxes Consolidation Act 1997 provides for the cycle to work scheme. This scheme provides an exemption from benefit-in-kind where an employer purchases a bicycle and associated safety equipment up to a maximum of €1,000 for an employee to use, in whole or in part, to travel to work. Safety equipment includes helmets, lights, bells, mirrors and locks but does not include child seats or trailers.
Benefit-in-kind is a charge to tax that applies where an employer provides an employee with a benefit such as a bicycle, car or accommodation. As stated above, an exemption from benefit-in-kind applies in relation to the cycle to work scheme, provided the required conditions are met. However, where an employer-employee relationship does not exist, for example, in the case of self-employed individuals, such individuals cannot qualify for the scheme.
Further information on the cycle to work scheme can be found on Revenue’s website, available here.
It is not possible to estimate the tax cost of extending the scheme to self-employed individuals.
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. There is no notification procedure for employers involved. This approach was taken with the deliberate intention of keeping the scheme simple and reducing administration on the part of employers.
Accordingly, there are no records available on the number of people availing of the scheme.
Finally, the expansion of any scheme does of course create a cost and that cost must be recovered elsewhere. For that reason, while the scheme is kept under review by officials, I have no plans at present for any change to the €1,000 limit or to change the scope of the scheme.
