Dáil Éireann Debate, Tuesday - 24 February 2026
387. Deputy Ciarán Ahern asked the Tánaiste and Minister for Finance the number of applications under the cycle-to-work scheme in 2024, 2025, and to date in 2026; if he will provide a breakdown between the number of bicycles, pedelecs, e-bikes, and e-cargo bikes; and if he will make a statement on the matter. [14812/26]
Amharc ar fhreagra388. Deputy Ciarán Ahern asked the Tánaiste and Minister for Finance his views on expanding the reach of the bike-to-work scheme beyond PAYE to include everyone, employers, sole-traders, students, jobseekers, the disabled, unpaid homework and the retired; and if he will make a statement on the matter. [14813/26]
Amharc ar fhreagraI propose to take Questions Nos. 387 and 388 together.
I note the Deputy’s questions on the Cycle to Work scheme.
Section 118(5G) of the Taxes Consolidation Act 1997 (TCA) provides for the Cycle to Work Scheme. This scheme offers an exemption from benefit-in-kind where an employer purchases a bicycle and/or associated safety equipment for one of their employees (or directors) to use, in whole or in part, to travel to work. Associated safety equipment may include items such as helmets, lights, bells, mirrors and locks.
Since 1 January 2023, the scheme applies to the first:
€3,000 of expenditure in relation to a cargo or e-cargo bike;
€1,500 of expenditure in relation to a pedelec or e-bike; or
€1,250 of expenditure in relation to any other type of bike.
Under section 118B TCA, the employer and employee may also enter into a Revenue-approved salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary in exchange for a bicycle and/or related safety equipment.
Benefit-in-kind is a charge to tax which 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/or related safety equipment is provided by an employer to either their director or someone in their employment. Where an employer-employee relationship does not exist, for example, in the case of self-employed, retired individuals, or those in receipt of social welfare payments, such individuals can’t qualify for the scheme. Likewise, salary sacrifice arrangements can only be entered into between an employer and a director or employee.
Further, the scheme operates on a self-administration basis. Relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. As such, there is no application or 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 a breakdown of the types of bicycles purchased. My Department does, however, include tentative estimates of the number of claims and revenue foregone in the annual Report on Tax Expenditures, and the Tax Expenditure Passports. The estimates for the years 2020 to 2024 are outlined in the table below. An estimate for the number of claims in 2025 will be published with the 2026 Report on tax expenditures, which I anticipate will be published during the summer. An estimate of the number of claims for 2026 will be available and published in 2027.
|
Year |
Estimated Number of Claims |
|
2020 |
22,000 |
|
2021 |
25,000 |
|
2022 |
25,000 |
|
2023 |
25,400 |
|
2024 |
25,400 |
It will be of interest to the Deputy that the Programme for Government 2025, "Securing Ireland's Future", contains a commitment to, within the lifetime of this Government, conduct a review of the Cycle to Work scheme to boost take-up among all workers.
