WHAT IS THE CYCLE TO WORK SCHEME?
The Cycle to Work scheme, also known as the Ride to Work scheme, is a government initiative available for all private, public and charity sector businesses, and allows employees to hire bicycles and equipment through salary sacrifice.
WHY SHOULD I PROVIDE THE CYCLE TO WORK SCHEME TO MY EMPLOYEES?
The scheme is a great way for employers to help employees to stay healthy and save money through tax and National Insurance contributions. The employee will have the opportunity to choose from a huge range of bikes from national chains as well as independent stores. The cost of the bike will be paid via salary sacrifice, normally over a 12 or 18-month period, with end of hire options, including a zero-cost extended hire option to maximise the savings achieved.
The scheme helps employees to save money on fuel, car parking, train and bus fares as well as saving time waiting for public transport. Cycle to Work also helps employees to reduce their carbon footprint, and by promoting alternative travel, employers demonstrate their status as a caring and green employer.
HOW DOES THE CYCLE TO WORK SCHEME WORK?
Employees can choose from a vast range of bike brands available in the UK market. The employer will then provide employees with their chosen bicycle and take an equivalent amount of the employee’s normal salary as a salary sacrifice. Unlike the salary, employees do not pay any tax or National Insurance on the value of the bike, so there are savings for both the employer and the employee.
At Busy Bees Benefits, we are committed to providing our clients with the right benefit schemes for their business. We are passionate about what we do and work hard to provide competitively priced benefits. If you’re interested in our Cycle to Work scheme, talk to a member of our team today on 0330 333 9100 or email us on firstname.lastname@example.org.