The Cycle to Work Scheme is one of the most popular and valuable benefits available to Irish employees. It allows an applicant to purchase a brand new bicycle and relevant bicycle accessories through their employer using a salary sacrifice agreement with potential tax savings of up to 52%. While the scheme is simple in theory, it can be easy to make some mistakes and not maximise your savings or pick the best option for you. Here are 5 mistakes to avoid and how to get the most from your application with Travelhub, Biketowork.ie and Hubex.
1. Not Knowing the Spending Limits
One of the biggest misconceptions is that there’s a threshold limit of the tax saving assistance provided by the scheme. There are three separate caps based on the bicycle type.
- €1,250 for traditional pedal bicycles or push bikes.
- €1,500 for electric bikes (ebikes)
- €3,000 for cargo bikes including electric cargo bikes
It is important to make sure that when you are submitting your application that you are submitting the right bike type so as to get the maximum saving available for your selected bike type. Visit https://www.travelhub.ie/#how-it-works to use our handy calculator to find out exactly home much you can save.
2. Waiting Too Long to Apply
Although the cycle to work scheme is predominantly offered year round by most employers, there are some that will have internal deadlines or application windows tied to payroll cycles. If you wait too long, you may miss your allotted application window and this could mean a delayed order, meaning less time cycling for you.
3. Forgetting to Include Accessories
The cycle to work scheme does not include just the bikes themselves, you can also include essential cycling accessories such as:
- Helmets
- Lights
- Locks
- Mudguards
- Hi-Viz clothing
- Pumps
- Tools
- Panniers
If you only apply for the bike and there is some money left under the price threshold for the type of bike you are applying for, the you are missing out on some substantial tax-free savings on some equipment that you will likely purchase anyway.
Example:
- Racing bike €999
- €251 balance available to purchase eligible tax free accessories/equipment
- Total €1250
4. Choosing the Wrong Bike for Your Commute
It’s very tempting to pick the best looking bike in the store or picking a cheaper entry level option. But if you plan to get to work in the most reliable way over distance, hills or carrying children to creche/school, then you may regret not selecting a bike that fits your real-life needs.
Consider:
- Electric bikes for longer or hilly routes
- Folding bikes for use in combination with public transport
- Cargo bikes for school runs or shopping
Tip: Talk to your local bike shop to get the best advice on the right bike choice for you.
5. Not Using Travelhub to Simplify the Process
Some employees try to manage their application manually by contacting HR , bike shops and Revenue separately. This can lead to missed paperwork, confusion about quotes or long processing times.
Travelhub streamlines everything:
- Great a quote in person of online from our dealer network of 400 bikes stores nationwide
- Apply via your employers dedicated portal
- Follow the status of your application via our portal
- Access our customer support for advice and assistance
Final Tips for Success
- You can use the Cycle to Work Scheme every four years
- Always double check that your employer is registered with Travelhub
- Check the repayment schedule set by your employer
Cycle smart, save big, and enjoy a healthier, greener commute.
Got questions? Visit our Cycle to Work FAQ or contact us directly.
