Cycle to Work
Promoting your organisation’s green credentials
What is Cycle to Work Scheme?
Cycle to Work is a salary sacrifice scheme in which the employer purchases a bicycle (electric or traditional) and cycling equipment to commute to work. The employee then pays the employer back over a period of time, typically this is 12 months, but can be shorter or longer.
The real win-win of the scheme is that the monthly repayment is paid as a salary deduction before tax is calculated. This reduces national insurance or income tax that the employer and the employee have to pay. Also, the employer can claim back the total cost against their Corporation Tax bill.
The scheme is an excellent way for UK cyclists to save at least 32% off the cost of their bikes and associated kit. It has benefited nearly two million individuals since it was introduced by the government in 1999 to “promote healthier journeys to work and reduce environmental pollution”.
What other benefits are there to the Green Commute Initiative:
Improves the fitness of the employee
Reduces Carbon Footprint helping the UK hit its Paris agreement goals
Mental Health Benefits- there is a lot of evidence to suggest that cycling helps to de-stress at the end of the day
Reduces the amount of parking space required at the office
Saves Money, with no road tax or fuel to pay, the cost of purchase pays for itself with savings
No more traffic jams
New Improvements to Cycle to Work
The scheme was limited to £1000 but now there’s no upper amount to the Cycle to Work scheme. So, as long as your company is willing to purchase the bike and the user is capable of sacrificing that portion of the salary then there’s no limit to what you could ride.
In addition to the alliances on cycle equipment, you can also claim 20p per for every mile cycled for work (not to and from work). And should your bike need a repair you can now claim £50 back from HMRC!
My Staff Shop Cycle to Work
With all the benefits of Cycle to Work, there is a downside, in that setting up the scheme for your company will take some time. That’s where My Staff Shop is able to assist you. When your company joins our employee benefits platform there will be a Cycle to Work scheme ready for your organisation to use.