Dáil Éireann Debate, Thursday - 1 April 2021
80. Deputy Louise O'Reilly asked the Minister for Finance the number of applications under the cycle to work scheme in 2020 and to date in 2021; the cost of the scheme in each of the past five years; and if he will make a statement on the matter. [17703/21]
View answerSection 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 €1,250 (and €1,500 in respect of pedelecs) 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 cycle to work scheme operates on a self-administration basis, and relief is automatically available provided an employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. There is no requirement for an employer to notify Revenue of the operation of the scheme. 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.
Tax expenditure reports prepared by my Department have estimated the cost in the full years referenced at €4 million but have been clear that this figure was an estimate as separate returns are not required for the same reasons as mentioned above.
