You can create a tax-allowable deduction for the 'Cycle to Work' scheme directly in BrightPay. Follow these steps:

 

1. Create the Deduction Type

- Go to Employer > Deduction Types > Add

- Enter a description in the Name  field (e.g., Cycle to Work)  

- Tick the boxes for Deduct before PAYE tax, Employee PRSI, Employer PRSI, and USC

- You can enter a default deduction amount or leave it at zero to specify amounts per employee later  

- Select Repeat until manually removed' for the default repetition (you'll need to stop the deduction manually when the cost is fully recouped).  

 

2. Apply the Deduction to an Employee 

- Navigate to Payroll > Select Employee 

- Click Add under Additions and Deductions

- Choose Cycle to Work from the list  

- Enter the deduction amount for the employee (e.g., €30 per week if the total cost is €780 over 26 weeks) 

 

 

 

3. Set the Deduction End Date 

- Click the spanner/edit icon next to the deduction  

- Select  Repeat up to date and enter the end date (e.g., the end of the repayment period)  

 

Important:

- If  Repeat until manually removed is selected, it’s the payroll user's responsibility to remove the deduction once the bicycle and accessories costs are fully recouped.  

- The deduction will be processed before PAYE, PRSI, and USC are calculated.

 

Additional Notes

- Under the July 2020 Stimulus, the bicycle and accessories cost up to €1,250 (€1,500 for electric bikes) are exempt from PAYE, USC, and PRSI.  

- The maximum repayment period is 12 months.  

- The scheme period has been reduced from five years to four, and the maximum term for repayment remains 12 months.