Save up to 50% of the cost of your bike and accessories.

By paying for your bike and accessories out of your gross wages and spreading the cost over one year you can make incredible savings. If you are in the higher tax bracket you can save up to 52% of the cost of your bike and if you are in the lower tax bracket you will save approximately 32% of the cost of your bike and accessories.

 

 

Lower tax rate

TOTAL COST OF BIKE + ACCESSORIES EXAMPLE €500 €1000
Income tax (21%) €105 €210
Employees prsi (based on 6%) €30 €60
Levy (based on 4%) €20 €40
Total cost of purchase €345 €690
Cost per month over 12 months €29 €57
Potential Savings 31% 31%

 

Higher tax rate

BIKE AND ACCESSORY PURCHASE EXAMPLE €500 €1000
Income tax (41%) €210 €420
Employees prsi (based on 6%) €30 €60
Levy (based on 4%) €20 €40
Total cost of purchase €240 €480
Cost per month over 12 months €20 €40
Potential Savings 52% 52%

Employee explanation and example

Check if your employer will take part in the scheme. If they will, contact Cruisefix, browse through our website and pick out your bike and accessories. We will advise you which bike suits you best, whether you want comfort, speed or both! We then give you an invoice which you pass onto your employer. Once your employer processes the payment, then we can release the brand new bike and arrange collection or delivery. Your employer will then deduct the amount from your gross wages over the coming year.

If you are on the higher tax bracket and you want to purchase a bike/accessories for €1000 you get 52% off and it only costs you €480. Spread this out over a year and it only costs you €40.00 a month which is automatically deducted from your wages. The maximum amount that you can spend through the cycle to work scheme is €1000 and which you can save up to 52% on the total cost of your bicycle and accessories.

Similarly, if you are on the lower tax rate you can save approximately 32% off.

Employer explanation and example

First of all decide if you want to take part in the cycle to work scheme. The benefits for you are saving on employee PRSI, and having fit and happy staff! When an employee brings an invoice to you from Cruisefix, you make payment to Cruisefix by cheque or bank transfer. You then deduct that amount from the employees’ gross wages over the coming year. Then you simply keep the aforementioned invoice and a record of the salary sacrifice on file. There are no forms to fill out or any need to inform the revenue commissioner.

As you can see this scheme is of great benefit to everyone involved and couldn’t be simpler. If you have any questions please give us a call or send us an email to courtney@cruisefix.ie. We have a huge range of bikes and accessories with something to suit everyone’s cycling style and needs. With the Cycle to Work scheme everyone wins – Employees make big savings on new bicycles and accessories and Employers save money on PRSI and get a healthier and more productive staff.