About the Cycle to work Scheme

The 1999 Finance Act introduced a tax exemption which allows employers to provide employees with bicycles and accessories as a tax-free benefit. The Cycle to Work scheme is part of the Government's Green Transport Plan, promoting healthier journeys to work and reducing environmental pollution.

Operating via salary sacrifice, payment for the bicycle by the employee is by way of deductions from gross pay, typically spread over 12 monthly payments. This gives rise to tax and National Insurance savings for the employee along with VAT and National Insurance savings for the employer.

Benefits to the Employer

• Employee Benefit to offer at no cost to the employer
• Financial Savings on Employers National Insurance Contributions, corporation tax and capital allowances.
• Reduces absenteeism and increases productivity due to a healthier workforce
• Improves the company's environmental credentials
• Supports the Green Travel Plan which companies may be required to operate
• Improves staff retention and recruitment
• Reduces workplace parking problems
• Schemes available for companies with one to any number of employees

Benefits to the Employee

• You can save between 30% and 50% off bikes and accessories
• Choose from a large range of bikes and accessories
• Spread the cost over monthly payments
• Improve your health and fitness
• Free delivery to your door from our UK distribution centre
• Order on line on our secure website

How the Cycle to Work Scheme operates

• Employee chooses a bike and accessories, obtains a quote and completes a Cycle to Work Scheme application form
• Company pays for a Cycle Voucher to cover the purchase of the bicycle and safety equipment
• Employee's can redeem their voucher from one of our UK outlets who will also deliver the bicycle direct to the employee's home or workplace.
• Company may treat the bicycle as a business purchase and reclaim the VAT
• VAT savings of 20% can be passed onto the employee
• Company recovers the cost of the bicycle and equipment from the employee via a Salary Sacrifice arrangement
• Employee pays a fixed monthly amount over a 12 month period from gross salary saving Tax and National Insurance Contributions
• Company saves 13.8% on employers National Insurance contributions
• Company retain ownership over the term of the Agreement
• At the end of the Hire Agreement the employee may have the option to purchase the bicycle and equipment at Fair Market Value

For more information please contact us here.