If you’re not able to car share, or you’re trying to get fit, then the cycle to work scheme may be the perfect option for you and your employer.
It also gives fantastic tax savings between the employee and employer.
I’ve answered some of the most frequently asked questions which will help you decide to get the scheme set up for you and your employer.
What is the bike to work scheme?
A healthy-living scheme encouraging cycling to work in a way that benefits both employer and employee. The bike to work scheme was introduced in 1999 to improve health in the workplace.
- Fitter, healthier and more productive staff
- Savings of up to 13.8% on employer NI contributions
- Valuable green credentials for your company
- Fewer absences through illness or stress
- Reduction of carbon footprint
- An attractive benefit for Employees
How much will I save?
The employee will save up to 42% of the cost of the bike. Employer will recover VAT, save NI and claim capital allowances on the cost of the bike
How does it work?
1. Employee or employer registers with a scheme provider such as https://www.bike2workscheme.co.uk/
2. Employee looks for bike suited for them via in person or online retailer (generally under £1000)
3. The employer buys the bike, either outright or loaned from retailer
4. Agreement is set up between employer and employee, to deduct hire charge from the employees salary
How long does it take to set up?
Minutes – the time-consuming part is finding a suitable bike.
How much can I spend on the bike?
£1000, unless your employer is an FC regulated bike-hire provider. The employer can buy the bike outright, or loan from a registered scheme provider