Tuesday, 24 November 2020

Questions (272)

Cormac Devlin

Question:

272. Deputy Cormac Devlin asked the Minister for Finance the thresholds for the bike to work scheme from January 2021; and if he will make a statement on the matter. [38003/20]

View answer

Written answers (Question to Finance)

Section 118 (5G) of the Taxes Consolidation Act 1997 provides for the cycle to work scheme. The scheme provides an exemption from benefit-in-kind where an employer purchases a bicycle and associated safety equipment 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. The scheme requires that the employee must mainly use the bicycle and safety equipment for qualifying journeys. This means the whole or part of a journey between home and the normal place of work.

The Financial Provisions (Covid-19) (No. 2) Act 2020 made some changes to the scheme, increasing the exemption limit from €1,000 to €1,250 or, in the case of electric bikes, to €1,500 for employer expenditure on the provision of bicycles and associated safety equipment, and also enabling employees to avail of the scheme more frequently. These increased thresholds are effective since 1 August 2020 and will not change in January 2021.