If you provide a new bicycle or pedelec (bicycle equipped with an auxiliary electric motor) and associated safety equipment (e.g. helmet, lights, lock, etc.) to an employee or director who agrees to use the bicycle to travel to work, a taxable benefit-in-kind (BIK) will not arise, provided that:
- the employee has not received this non-taxable BIK from you in the past 5 years.
- the value of the purchase does not exceed €1,000. If the purchase exceeds €1,000, only the first €1,000 will be non-taxable.
- you, the employer purchases the bicycle – the employee therefore cannot purchase the bicycle and claim a reimbursement.
- the bicycle is used primarily for work.
If you want this to appear on the payslip of the employee, you can set this up on SimplePay as a custom company contribution item. Selecting the company contribution option when creating the custom item rather than a benefit will ensure that it is not taxed. More information about custom items is available here:
You may opt to recover the cost of the bicycle from the employee through a salary sacrifice. More information about salary sacrifices is available on the following help page: