How much does it actually cost to buy a bike on the Cycle to Work scheme?

I’m sure you’ve heard that you can save money on the cost of a bike if you buy it on the cycle to work scheme but is it true that it’s 50% or more? Click on through for the facts and details of how to hang onto more of your hard earned money.

Example 1 €500 purchase

If you were to buy a bike that cost €400 and qualifying accessories for €100 on the cycle to work scheme it could cost you as little as €250 if you are on the higher rate of tax. If you are on the lower rate of tax then the cost would be approximately €340.

If you want to follow the numbers more closely I’m on Strava as Rob Cummins Wheelworx or if you’re more of a pictures instead of reading type I post on Instagram as wheelworxrob.

 

Chasing Kona book available

From smoker to back of the pack triathlete to the Ironman World Championships.

Read about how I overcame all of the odds and discovered what it would take to get to the Ironman World Championships – my eBook is now available to buy as an eBook on Amazon UK, Amazon US, Barnes & Noble, and iTunes

It is also available as a paperback at Wheelworx.

Savings at the higher rate of tax on a €500 purchase

  • Total cost €500
  • Savings at the higher rate of tax €250
  • Actual cost to the employee €250

Savings at the higher rate of tax on a €500 purchase

  • Total cost €500
  • Approximate savings at the higher rate of tax €160
  • Actual cost to the employee €340

This amount is then deducted from your wages either weekly, monthly or in one repayment. The bike might cost as little as €4.70 weekly if your deductions are done over 12 months. This will be dependent on how your employer operates the scheme for their employees.


Example 2 €700 purchase

If you were to buy a bike and qualifying accessories on the cycle to work scheme up to €700 and had your repayments over the maximum 12 months then the cost could be as little as €6.59 a week at the higher rate of tax or €9.28 on the lower rate.

Savings at the higher rate of tax on a €700 purchase

  • Total cost €700
  • Savings at the higher rate of tax €350
  • Actual cost to the employee €350

Savings at the higher rate of tax on a €700 purchase

  • Total cost €700
  • Approximate savings at the higher rate of tax €210
  • Actual cost to the employee €490

Example 3 €1000 purchase

Even if you were to spend the maximum €1000 on a bike and accessories then it could work out at approximately €9.40 a week on the higher rate of tax or approx €13.26 for someone on the lower rate.

Savings at the higher rate of tax on a €1000 purchase

  • Total cost €1000
  • Savings at the higher rate of tax €500
  • Actual cost to the employee €500

Savings at the higher rate of tax on a €1000 purchase

  • Total cost €1000
  • Approximate savings at the higher rate of tax €300
  • Actual cost to the employee €700

  • For details of how the cycle to work scheme works click here
  • For a guide on how much you can save click here
  • For a calculator on how much you can save on your bike purchase click here
  • You can also buy qualifying cycle accessories on the scheme, for details of what’s allowed click here
  • For a list of all posts on the cycle to work scheme click here
  • If you would like to talk to us about how we can help you set up the scheme in your workplace you can contact us at info@wheelworx.ie or on 00353 1 6201000

If you want to follow the numbers more closely I’m on Strava as Rob Cummins Wheelworx or if you’re more of a pictures instead of reading type I post on Instagram as wheelworxrob.

 

Chasing Kona book available

From smoker to back of the pack triathlete to the Ironman World Championships.

Read about how I overcame all of the odds and discovered what it would take to get to the Ironman World Championships – my eBook is now available to buy as an eBook on Amazon UK, Amazon US, Barnes & Noble, and iTunes

It is also available as a paperback at Wheelworx.

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