Inner City Scooters | Bike to Work Scheme – Save Big on Fiido, KuKirin, Engwe & Inner City Bikes

The Bike to Work Scheme (also called the Cycle to Work Scheme) is a Government of Ireland tax incentive that lets employees purchase a new electric bike or bicycle completely tax-free through their employer. Instead of paying for the bike yourself from take-home pay, your employer buys the bike on your behalf and then recoups the cost through regular deductions from your gross salary — before income tax, PRSI, and USC are calculated.

This means you never pay tax on the amount used to buy the bike. Depending on your income, this saves you between 27% and 52% off the cost of a brand new electric bike.

The scheme is administered by Revenue Commissioners Ireland and has been in place since 2009. It was significantly expanded in 2020 to include higher spending limits for electric bikes and cargo bikes.

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The process is straightforward and is handled between you, your employer, and the bike shop:

1. Check if your employer participates. Most Irish employers — especially in the public sector — already offer the scheme. If yours does not, they can register easily. The scheme must be made available to all employees once offered.
2. Choose your electric bike and accessories from a registered supplier such as Inner City Scooters. Your total spend (bike plus equipment) must stay within the scheme limits.
3. Get a quote or invoice made out to your employer's company name — not your own name.
4. Submit to your HR or payroll department. Your employer reviews and approves the application.
5. Your employer pays the bike shop directly. The tax exemption does not apply if you pay for the bike yourself and your employer reimburses you afterwards — the employer must pay the supplier directly.
6. Sign a salary sacrifice agreement stating the bike will be used for commuting to and from work. You agree to repay the cost through salary deductions over an agreed period of up to 12 months.
7. Repayments begin on your payslip — weekly, fortnightly, or monthly depending on your pay arrangements. Because deductions come from gross salary, you pay significantly less than the face value of the bike.

Important: Your employer must pay the supplier directly. If you pay first and your employer reimburses you, the tax exemption does not apply.

• Employees (PAYE workers) — any employee whose employer participates in the scheme.
• Public sector workers — fully eligible; must use an approved supplier from the government list.
• Remote and hybrid workers — eligible if the bike is used for work-related journeys, including commuting on days you travel to the office. Revenue confirmed this applies to home-based employees.
• Part-time employees — eligible, subject to normal scheme rules.
• Company directors — eligible if they are also employees of the company.

Who cannot use the scheme:

• Fully self-employed individuals who do not also pay PRSI as an employee. If you are self-employed but also hold a PAYE position where you pay PRSI as an employee, you may be eligible through that employment.
• Employees whose employer has chosen not to participate in the scheme.

The scheme covers the bike and eligible safety equipment together up to the following limits. Anything above the limit is treated as a taxable benefit in kind (BIK).

These limits include both the bike and any accessories purchased at the same time. If you spend less than the limit, you cannot carry over the unused amount to future years — the limit resets at the next eligible cycle (every 4 years).

Please note: The scheme covers bicycles and electric bikes (pedelecs) only. It does not cover electric scooters, mopeds, or motorbikes.

Your saving depends on your income tax rate and where your salary falls within the USC and PRSI bands. The deduction comes from your gross salary before tax, so you save on every tax you would otherwise have paid on that income.

The current rates for 2025 are:

• Income Tax: 20% (standard rate) or 40% (higher rate, income above approximately €44,000 for a single person)
• PRSI: 4.2% (from October 2025)
• USC: 0.5% up to €12,012 / 2% up to €27,382 / 3% up to €70,044 / 8% above €70,044

Example: €1,500 electric bike

Higher earners (income above €70,044) face an 8% USC rate on marginal income and can save up to 52% in total. The average saving across all income levels is typically between 27% and 52%.

Your monthly salary deduction is taken from your gross pay, not your take-home pay — so the impact on what you actually receive each month is significantly less than the deduction amount shown.

The following items are eligible under the scheme when purchased as new (not second-hand):

• New electric bikes and pedelecs (electrically assisted bicycles requiring some pedal effort)
• New standard bicycles
• Cargo and e-cargo bicycles with frames specially designed to carry heavy loads or passengers
• Cycle helmets conforming to European standard EN 1078
• Bells and bulb horns
• Lights, including dynamo packs
• Mirrors and mudguards
• Cycle clips and dress guards
• Panniers, luggage carriers and straps
• Locks and chains
• Pumps, puncture repair kits, cycle tool kits and tyre sealant
• Reflective clothing, white front reflectors and spoke reflectors

Not covered: Child seats, child helmets, child trailers, motorbikes, mopeds, electric scooters, or any second-hand bicycles or equipment.

• Employees (PAYE workers) — any employee whose employer participates in the scheme.
• Public sector workers — fully eligible; must use an approved supplier from the government list.
• Remote and hybrid workers — eligible if the bike is used for work-related journeys, including commuting on days you travel to the office. Revenue confirmed this applies to home-based employees.
• Part-time employees — eligible, subject to normal scheme rules.
• Company directors — eligible if they are also employees of the company.

Who cannot use the scheme:

• Fully self-employed individuals who do not also pay PRSI as an employee. If you are self-employed but also hold a PAYE position where you pay PRSI as an employee, you may be eligible through that employment.
• Employees whose employer has chosen not to participate in the scheme.

• Your employer must pay the supplier directly — reimbursing you does not qualify.
• The bike and equipment must be purchased at the same time from one supplier.
• You must sign a written agreement that the bike is for your own use and for qualifying journeys (commuting to and from work).
• The salary sacrifice period cannot exceed 12 months.
• The purchase agreement cannot be cancelled once the bike has been bought.
• Spending above the scheme limit is subject to benefit-in-kind (BIK) tax.
• The bike must be new — second-hand bicycles do not qualify.
• If your employer buys you a bike and does not charge you for it, you will not be taxed on the benefit as long as the cost is within the scheme limits.

1. Browse our electric bikes and choose the model that suits your commute.
2. Apply online using our simple application form — we will prepare an invoice addressed to your employer.
3. Submit the invoice to your HR or payroll team for approval.
4. We deal directly with your employer — once approved, Inner City Scooters is paid by your employer and your bike is delivered to your door or ready for collection at our Dublin store.
5. Salary deductions begin on your next payroll cycle and run for up to 12 months.

We process Bike to Work applications every day and can help you and your employer through each step. If you have questions before applying, contact our team at innercityscooters.com/pages/contact.

Apply Now — Bike to Work Scheme

Browse our eligible electric bikes