Cycle to Work Scheme
This guide will give information on how to input a cycle to work scheme into Parolla as a non taxable employer benefit.
Background to cycle to work scheme
Under the scheme an employer can buy a bicycle and safety equipment for an employee. This will not be a taxable benefit-in-kind.
The tax exemption does not apply if the employee pays for the bicycle and the employer reimburses them. The employer must pay for the bicycle. Most bike shops run a voucher system where the employee chooses a bike and gives the voucher to their employer for them to pay for the bike.
Limits of the scheme
There are now two limits, depending on the type bicycle purchased.
For pedelecs or ebikes and related safety equipment the limit is €1,500. For other bicycles and related safety equipment the limit is now €1,250. Prior to 1 August 2020 the limit for all bicycles and safety equipment was €1,000.
Check out the Revenue website for full information on the scheme and qualifying criteria.
Inputting the cycle to work scheme into Parolla
Go to the menu and choose Transport > Cycles> New
Fill in the relevant details. The bike must be repaid within a maximum of 12 months. If the purchase price was over value limit the employee can pay the difference, this won’t appear on the pay slips.
The employee declaration is generally included in the voucher documents provided by the bike shop.
The cycle to work amount will now appear in the deductions section of the employees pay slip.
Monitoring payments made to the scheme
You can monitor the amount paid to date by clicking on transport> cycles and view as per below.
The scheme doesn’t appear on the pay slip.
If you have entered the scheme after opening (creating) the pay run the individuals pay slip will need to be reloaded. Please see below.