Relief for employers who fund bicycles

CYCLING MEASURE:EMPLOYERS WILL be able to fund the purchase of bicycles and accessories to a value of €1,000 under new benefit-in-kind provisions in the Finance Bill.

The measure, designed to increase the number of commuters travelling on two wheels, comes into force from next January.

The bikes involved must be new and used mainly for commuting journeys, according to the terms of the Bill.

Safety equipment such as bells, helmets, locks, lights and reflectors, are also covered.

However, the relief cannot be claimed more than once every five years.

The bike can be funded by the employer or by the employee through salary sacrifice in a 12-month period.

The scheme for companies that buy bikes for their employees is similar in concept to one that has been running in the UK for years and which has helped boost sales of bicycles.

However, the Galway Cycling Campaign last night expressed scepticism about the new measure.

Spokesman Shane Foran said that while the relief was welcome in theory, "to our knowledge, access to bicycles is not an obstacle to increasing the number of cycle commuters".

"We don't see how this is going to get more people cycling," he continued.

Mr Foran pointed out that for an intermittent cyclist/motorist on the 20 per cent tax rate buying a €500 bike, the Government will take €1,000 over five years via the parking levy, against just €100 saved on the bike.