How the Bike to Work Scheme Works
The Cycle to Work Scheme allows employers to loan bicycles and safety equipment to employees through a salary sacrifice arrangement. The employee saves tax because repayments are deducted from gross pay before PAYE, USC, and PRSI are calculated, within scheme limits.
Umbrella contractors are PAYE employees of the umbrella, so they can participate when the umbrella operates the scheme and the bike is used mainly for commuting to work.
Limits and Qualifying Equipment
Revenue sets maximum amounts for bicycles and related safety equipment. Electric bikes may qualify within the published cap. The equipment must be supplied by a participating retailer and documented with invoices in the employer's name or processed according to scheme rules.
The bike should be used mainly for travel between home and work. Personal use is expected, but the primary purpose must be commuting.
Requesting Bike to Work Through Paytube
Choose a participating bike shop, obtain a quote, and submit your Bike to Work request in the Paytube portal with the quote attached. Paytube confirms eligibility, sets up the salary sacrifice, and coordinates payment with the retailer after approval.
Salary sacrifice reduces your gross pay for the repayment period, which affects net pay and may interact with other payroll items. Review the proposed deduction schedule before signing employer paperwork.
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