The scheme is easy to access and wonât take up much administration time for your employer. The Cycle to Work scheme is designed to help you save money on a new work bike and spread the cost of the bike over monthly tax-free instalments through your employer. There are a few different scheme providers out there each with their own variations but the basic idea is the same. Make a pledge to give cycling a go, or offer your support to others, so more people can discover why #BikeIsBest. Not only are they kinder to the environment, but they’re also cheaper to run. For Employers Monthly payments for the new bike are taken from the employeeâs gross salary i.e. After which the company can take back the bike, but if you wish to take the ownership of the bike, you can purchase at fair market value which can be 25% of the original price. It’s a simple process: Your workplace registers … before any tax is deducted. Employer guidance and options on setting up a cycle to work scheme covering: benefits. What is an employer code? If you want Cyclescheme to run your Cycle to Work scheme or take over your current scheme please sign up below. Because healthier, happier employees mean more productive staff for Employers. This usually works out around 7%, though the Green Commute Initiative only charges £1. The Cycle to Work scheme is an initiative implemented by countries like the UK and the Netherlands. The Cycle to Work scheme also allows you to buy accessories alongside the bike and this is definitely something you should take advantage of. This payment comes out before your tax is calculated and deducted. Do I have to ride to work everyday? Salary sacrifice periods are for a minimum of 12 months (but can be for longer) and your employer can advise on the spending limit. Thereâs a financial benefit for your employer too. But once you’ve tasted the freedom of cycling to work you might want to buy a better bike that’s more suited to your commuting route. The scheme is easy to access and won’t take up much administration time for your employer. Help us to continue to care for the National Cycle Network and support our work to improve walking and cycling for everyone. When it's time to pay the ownership fee what do the options look like? It was intended to help people buy bicycles for their commute by providing an interest free loan that is repaid income tax free. I'm an Employee I'm an Employer. Cycle2Work is a great employee benefit which offers the most cost-effective way to get new cycling equipment. The cycle to work scheme offers a chance to own really great cycles and safety equipment at affordable prices Choose the cycle and safety equipment you want at the retailer you want Your employer buys the equipment and rents it back to you, you then repay your employer over a fixed length of time The Government’s Cycle to Work initiative enables you to help your employees make savings of up to 42% on a brand new bike and safety accessories for cycling to work. Your workplace registers with a scheme provider. You ask your Company to set up our proposed “Cycle to Work” scheme by completing our form to purchase the eBike that will set up a loan agreement with you as the employee which is deducted from your salary. You choose the bike you want 3. They end up paying less employer national insurance contribution so they save about 13% on the cost of the bike. With Bike2Work you could save up to 42%. How are cycle to work savings made? You might have heard of the Cycle to Work scheme, but how does it work and can you really get a new commuting bike without having to pay for it up front? Monthly payments for the new bike are taken from the employee’s gross salary i.e. Explore fantastic walking and cycling routes across the UK. Put simply, the Cycle to Work scheme is a way of making savings for your organisation and your employees. taxation. The scheme is run via a salary sacrifice meaning you won’t pay tax or national insurance – this saves you between 32% and 42% on your new bike and accessories. In theory, … Historically the Cycle to Work Scheme maximum spending amount was £1,000. Electric cars are becoming increasingly popular in the UK. That’s where the Cycle to Work scheme can come in handy. Even if you spend more than £1000 on a bike, you can still use the fdiscount to contribute to your new purchase. The cycle to work scheme has been around since 1999. These savings are achieved via salary sacrifice, saving the employee tax & NI off the cycle value. Everything you need to know about the Cycle to Work Scheme What is the Cycle to Work Scheme? equipment. You are not liable for tax, PRSI or the Universal Social Charge on … Employees can now save on Bikes and accessories over £1000! The scheme has some great benefits for everyone. Sign up here 5,000 bikes so far. Sustrans is a registered charity in England and Wales (number 326550) and Scotland (SC039263) and a company limited by guarantee registered in England No 1797726 at 2 Cathedral Square, Bristol, BS1 5DD. The … The cycle to work scheme is a salary sacrifice arrangement, to partake in the scheme you must: Be 16 or over Earn at least minimum wage after the salary sacrifice has been taken from your pay Be paid and taxed via Pay As You Earn (PAYE) system Maybe you’ve got a trusty old bike in the shed or can arrange to borrow one from a friend so you can try commuting by bike. You pay your employer back through monthly instalments taken through payroll. Salary sacrifice periods are for a minimum of 12 months (but can be for longer) and your employer can advise on the spending limit. You pay your employer back through monthly instalments taken through payroll. There are a few different scheme providers out there each with their own variations but the basic idea is the same. If you are not taking advantage read below and strt researching. The Cycle to Work scheme is a great way for UK cyclists to save at least 32 per cent off the cost of a bike and cycling equipment. However, the amount you can spend on your Cycle2Work scheme still depends on your employer who chooses the limit. I'm happy to receive advice, tips and other great stuff from #BikeIsBest via email. You might have heard of the Cycle to Work scheme, but how does it work and can you really get a new commuting bike without having to pay for it up front? This means that at the end of the scheme youâll have saved up to 32% of the actual cost of the bike for basic-rate taxpayers. The Cycle to Work Scheme was introduced in January 2009 to encourage people to cycle to work.
