Posted online: Aug 10th, 2010

A number of teachers and school staff in Inishowen could soon be cycling to school thanks to the reform of the “Cycle to Work” scheme.

The initiative allows a benefit-in-kind tax exemption to apply where an employee agrees to forego or sacrifice part of his or her salary to permit his or her employer to purchase a new bicycle, and/or bicycle safety equipment, up to a value of 1,000 euro on his or her behalf. 

The employee does not pay tax, PRSI, income levy or pension related deduction on the remuneration sacrificed.

Minister for Education and Skills, An Tanaiste Mary Coughlan, has written to management authorities of primary, secondary, community and comprehensive schools in the peninsula to inform them the scheme will apply to teachers, special needs assistants, clerical officers, caretakers and childcare workers paid on payrolls operated by the Department of Education and Skills as paymaster.  

The scheme allows an employer to purchase a new bicycle and/or bicycle safety equipment up to a value of 1,000 euro once every five years on behalf of an employee.   

The scheme applies only to new bicycles and bicycle safety equipment purchased from approved suppliers.

The revised scheme for 2011 will allow teachers returning to work this September to apply for the scheme, and salary deduction in 2011, until May of next year. 

An Tánaiste said the “Cycle to Work” scheme was proving “increasingly popular” and she would continue work on making the scheme as flexible and accessible as possible to teachers, special needs assistants, clerical officers, caretakers and child care workers paid on payrolls operated by her Department.