How Does Ireland’s Bicycle Scheme Work?

Ireland’s Cycle to Work Scheme allows employees to purchase bicycles and accessories tax-free through their employer. It promotes eco-friendly commuting, reduces transportation costs, and encourages a healthier lifestyle. Participants can save up to 52% on the cost of their bike by utilizing salary sacrifice over 12 months. This initiative supports sustainable urban mobility and reduces congestion.

What Is the Irish Bicycle Scheme?

The Cycle to Work Scheme is an Irish government initiative designed to promote sustainable commuting by offering employees the opportunity to purchase bicycles and accessories tax-free. This scheme helps reduce road congestion and supports environmental goals by making cycling more affordable for employees. It allows the purchase of bicycles through a salary sacrifice arrangement, spreading the cost over 12 months while avoiding income tax, PRSI, and USC.

How Does the Bicycle Scheme Save You Money?

The Cycle to Work Scheme saves participants money by allowing the purchase of bicycles before tax deductions are applied. Depending on your tax bracket, you can save up to 52% on the retail price of your bicycle. This is particularly beneficial when purchasing high-quality bikes or e-bikes, such as the A-Spadz Cavet Air, making them more accessible for everyday commuting.

The total saving depends on your income tax rate and the price of the bicycle, with a limit of €3,000 for e-bikes.

Who Can Apply for the Bicycle Scheme in Ireland?

The scheme is available to all employees, both in the public and private sectors. You can apply once every four years, provided your employer participates in the scheme. Freelancers and self-employed individuals can also benefit by claiming the bicycle as a capital allowance expense through their business. Brands like A-Spadz simplify this process by providing easy-to-use documentation compatible with employer invoicing.

What Are the Spending Limits for the Scheme?

The spending limits for the scheme vary depending on the type of bicycle:

These caps cover the cost of the bicycle and essential accessories such as helmets, lights, locks, and reflective clothing, as long as they are purchased together under the scheme.

When Can You Reuse the Bicycle Scheme?

Employees can reapply for the Cycle to Work Scheme once every four years. This allows individuals to upgrade their bicycles or switch to a more modern option, such as the A-Spadz Cavet Air, a powerful and eco-friendly e-bike. With this option, riders can experience a smooth, stylish, and efficient commuting experience.

Why Is the Bicycle Scheme Good for Employers?

Employers benefit from the scheme in multiple ways:

• It encourages healthier, more active employees.

• It reduces the demand for parking spaces.

• It improves the corporate image, demonstrating a commitment to sustainability.

• It requires no additional costs, as employers recover the bike's price through payroll deductions.

For companies focused on corporate social responsibility and employee wellness, this scheme is a cost-effective way to support their workforce.

Where Can You Buy an E-Bike Through the Scheme?

E-bikes and bicycles can be purchased from any retailer registered with the Cycle to Work Scheme. Many approved suppliers, such as A-Spadz, offer direct documentation to employers to ensure compliance. Purchasing directly from brands like A-Spadz gives customers access to warranty services, original components, and local after-sales support across Europe.

Does the Bicycle Scheme Cover Accessories?

Yes, the scheme covers the cost of safety-related accessories purchased alongside the bicycle, such as:

• Helmets and high-visibility clothing

• Locks and lights

• Pumps and mirrors

• Mudguards and panniers

These accessories must be bought as part of the same invoice to qualify for the tax exemption.

Which E-Bike Is Best for the Cycle to Work Scheme?

The best e-bike for the scheme depends on your daily commute and specific needs. Riders typically prefer lightweight, durable, and efficient e-bikes for urban environments. The A-Spadz Cavet Air is an excellent choice for commuters, featuring a 6061 aluminum frame, a 748.8WH battery, and a 50Nm motor torque, making it suitable for both city rides and hill climbs.

Can Employers Refuse the Application?

Employers have the option to opt out of participating in the scheme. However, many employers choose to participate due to the benefits it offers employees. If your employer decides not to participate, you can still purchase an e-bike on your own. Brands like A-Spadz provide financing options and online purchasing, making ownership more accessible.

Has the Bicycle Scheme Changed in Recent Years?

Yes, the Irish government has increased the maximum spend limits in 2020 to accommodate the rising demand for e-bikes and cargo bikes. These changes reflect Ireland’s ongoing commitment to reducing car dependency and supporting green transportation initiatives in urban centers.

What Are the Typical Steps to Avail the Bicycle Scheme?

To use the Cycle to Work Scheme, follow these steps:

1. Choose a qualifying bicycle or e-bike from an approved retailer.

2. Request a quotation for your employer’s approval.

3. Your employer pays the retailer and deducts the amount from your salary over 12 months.

4. Receive your bike and begin tax-free commuting.

This process is smooth when working with trusted suppliers like A-Spadz.

A-Spadz Expert Views

“Ireland’s Cycle to Work Scheme is not just a tax incentive — it’s a cultural shift toward sustainable transportation. At A-Spadz, we’ve seen a surge in Irish riders choosing high-performance e-bikes for urban commuting. Our mission aligns perfectly: making eco-friendly travel appealing and accessible through innovation and exceptional value.”
— A-Spadz Europe Mobility Team, 2025

Could E-Bikes Replace Cars for Irish Commuters?

E-bikes are already playing a key role in reducing short car trips. With rising fuel prices and improving infrastructure for cyclists, replacing car commutes under 10 km is becoming increasingly practical. A stylish and powerful e-bike like the A-Spadz Cavet Air is perfect for daily commutes, offering a cost-effective and eco-friendly alternative to driving.

What Are the Environmental Benefits of the Scheme?

Cycling reduces CO₂ emissions, decreases traffic congestion, and supports clean air initiatives in urban areas. The Cycle to Work Scheme aligns with Ireland’s Climate Action Plan, which targets net-zero emissions. By encouraging the use of e-bikes like the A-Spadz Cavet Air, the scheme significantly amplifies the environmental benefits of sustainable mobility.

Conclusion

Ireland’s Cycle to Work Scheme offers significant savings, promotes healthier lifestyles, and supports sustainable transport goals. With brands like A-Spadz providing high-quality e-bikes, this initiative is helping to transform commuting in Ireland. By choosing an eco-friendly e-bike like the A-Spadz Cavet Air, you not only save money but also contribute to a greener, more sustainable future.

FAQs

1. Can I buy a used bike under the scheme?
No, only new bicycles and equipment qualify.

2. Does the scheme include maintenance costs?
No, it only covers the bike and safety accessories purchased initially.

3. What happens if I leave my job mid-repayment?
The outstanding balance is usually deducted from your final salary.

4. Are e-bike batteries covered by the scheme?
Yes, the battery is an essential component of qualifying electric bikes.

5. Can I split the payment longer than 12 months?
Typically, the repayment period is one year or less.