Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Cycling Policy

Dáil Éireann Debate, Thursday - 16 June 2022

Thursday, 16 June 2022

Ceisteanna (62)

Darren O'Rourke

Ceist:

62. Deputy Darren O'Rourke asked the Minister for Finance if he has plans to expand the bike-to-work scheme to ensure that students, pensioners and those on social welfare payments can access the same benefit that this scheme delivers for PAYE workers; if he is working with colleagues in the Departments of Transport and Public Expenditure and Reform on same; and if he will make a statement on the matter. [30742/22]

Amharc ar fhreagra

Freagraí scríofa

Section 118(5G) of the Taxes Consolidation Act 1997 (TCA 1997) provides for the Cycle to Work scheme. This scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and associated safety equipment up to a maximum of €1,250 (€1,500 in the case of e-bikes), 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.

Under section 118B TCA 1997 an employer and employee may also enter into a salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a bicycle and related safety equipment.

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. Therefore, the Cycle to Work scheme is only applicable where the bicycle and safety equipment is provided by an employer to either a director or someone in its employment and thus, where an employer-employee relationship does not exist, for example, in the case of students, retired individuals, or those in receipt of social welfare payments, such individuals can’t qualify for the scheme. Likewise, salary sacrifice arrangements may only be entered into between an employer and a director or employee.

As the Deputy will be aware, the cycle to work scheme operates on a self-administration basis. Relief is automatically available provided the employer is satisfied that the conditions of its 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 or the cost of the scheme.

The scheme continues to be kept under review by my officials. The Deputy will appreciate that it would not be appropriate for me to comment at this time, on what changes, if any, are being considered in terms of this relief or any other tax relief. The Deputy may also be aware that the Department of Transport published an examination of the scheme in November 2021 as part of the Spending Review series.

Further guidance regarding the Cycle to Work Scheme and salary sacrifice arrangements can be found on Revenue’s website.

Question No. 63 answered with Question No. 51.
Barr
Roinn