Majic.iE

“The number of people throughout the city that have taken part in the scheme so far is unknown, but there are a huge amount of enquiries”, according to Green Councillor Niall Ó Brolcháin.
 
“It looks like it’s going to be very successful, but it’s taking time setting it up”, said Councillor Ó Brolcháin, adding: “It’s a tax incentive so it takes time for the bureaucratic side of things to be set up”.
 
Bicycles must be purchased by an employer, with either the employer bearing the full cost of the bicycle, or by way of a salary sacrifice agreement. The salary sacrifice will enable an employee to repay the cost of the bike and accessories, minus the tax, to their employer over an agreed period of time.
 
For a top rate tax payer earning €41,000 per annum, this tax relief essentially means that at the end of the year, tax will only be worked out on €40,000 of their earnings. This will give the worker €1,000 of their salary tax free. The Government has agreed to fore go this tax so it will not be paid.
 
Companies however, are not obliged to take part in the scheme. Mr Forde said: “Some employers have refused to take part in the scheme. Financially, many companies cannot afford to write a cheque for €1,000 right now.”
 
The Green councillor who is waiting for a chance to get his own tax free bicycle says that the City Council are among one of various employers currently setting up the scheme.
 
One of the aims for the scheme is to encourage health and fitness. According to The Green Party, regular cyclists are as fit as an average person 10 years younger, and will live two years longer than non-cyclists.
 
For more information contact Nigel’s Cycles 091 752852, or www.bikescheme.ie