Cycle to work scheme
The cycle to work scheme encourages employees to cycle to work and allows employers to reap the benefits of a healthier workforce. The government introduced a tax exemption that allows employers to loan cycles and cyclists' safety equipment to employees as a tax-free benefit.
How it works
Cycle to work schemes allows employers to offer their employees the hire of a bike for commuting in exchange for a salary sacrifice. The salary sacrifice enables the employees to use their gross pay to reimburse the employer for the cost of the bike. The gross pay is before tax, so you save the tax and national insurance which would have been due on the amount sacrificed (at least 33%). It also allows employees to spread the cost over monthly deductions from your pay (up to 60), making the equipment more affordable. At the end of the ‘hire’ period, you are usually offered the option to buy the bike from your employer.
What equipment is included?
Eligible equipment includes cycles and cyclists' safety equipment. An electrically assisted pedal cycle can be included under the scheme.
What schemes are available?
There are a number of scheme providers out there here at Albion Cycles we currently offer the one provided by the Green Commute Initiative (GCI).