Here at Mike Vaughan Cycles, we think that the various government Cycle to Work schemes have been a great benefit to all, from employees right through to their employers.
We’ve been dealing with Cyclescheme for over 15 years, yet this is one of the several schemes we work with.
We also supply bikes to employees of various NHS Trusts through SME HCI.
We have recently partnered with Green Commute Initiative who are the cycle to work scheme without a £1000 limit. Since we’ve been live with Cyclescheme, we’ve supplied £3million worth of bikes and accessories to thousands of customers in the area.
Taken from the Department for Transport Website, here’s a brief overview:
To promote healthier journeys to work and to reduce environmental pollution, the 1999 Finance Act introduced an annual tax exemption, which allows employers to loan cycles and cyclists’ safety equipment to employees as a tax-free benefit. The exemption was one of a series of measures introduced under the Government’s Green Transport Plan. The following guidelines clarify how organisations can take advantage of the exemption to implement a Cycle to Work scheme that encourages employees to cycle to work and allows employers to reap the benefits of a healthier workforce.
Cycle to Work schemes are in essence a salary sacrifice scheme, whereby the cost of the bicycle (& accessories) are take out of your wages before tax and National Insurance are applied.
This allows you on average, depending on your tax rate, to save between 32% and 42% on the cost of your bicycle. Employers also benefit from this scheme, saving on National Insurance Contributions.
