The Bike to Work Scheme (BTWS) is a fantastic initiative that encourages cycling for commutes by offering significant tax savings on bicycle purchases. Here's a breakdown of how it works:
Essentially, you get a tax-free bike!
Imagine buying a phone: Your employer deducts taxes from your salary before you receive it. So, the phone's cost includes its price plus taxes (which can be as high as 26% or 52% in Ireland!).
With the BTWS, it's different. You spread the cost of the bike (including some accessories) across your salary payments through a salary sacrifice agreement. Crucially, taxes are not applied to these salary deductions. This significantly reduces the overall cost of your bike.
Here's a simplified formula:
Regular Bike Purchase: Price of Bike + Taxes = Total Cost
Bike to Work Scheme Purchase: Price of Bike (Tax-Free) = Significantly Lower Total Cost
Benefits:
- Save Money: Enjoy a brand new bike at a fraction of the usual cost.
- Promote Health: Cycling is a fantastic way to stay active and improve your well-being.
- Reduce Carbon Footprint: Choose a greener and more sustainable commute.
Want to Learn More?
We have a comprehensive Bike to Work page dedicated to explaining the scheme in more detail: https://pogocycles.com/pages/bike-work-scheme. This page can answer any further questions you might have about eligibility, application processes, and specific benefits.
Remember: Don't hesitate to reach out if you need further clarification!