The Cycle to Work scheme was launched in 1999 and has helped countless employers and employees to save time, money and get fitter ever since. In fact, more than 400,000 people have bought a bike through the scheme, with recent studies showing that, every year, the scheme alone saves the environment from the entire CO2 output of a city the size of Hereford. However, many people still aren’t aware of the scheme or the ways in which it can help them.
The scheme is open to all employers of all sizes across all sectors, in which bikes and cycle safety equipment can be loaned to employees as a tax-free benefit without the need for approval from HMRC. Crucially, there’s no upper value limit on the bike or equipment loaned, plus it’s even possible for the employee to have two bikes loaned to them under the scheme. This is particularly handy if, for example, someone needs to cycle from their home to the railway station, where they’d leave the first bike, then ride their second bike from their destination station to work.
In terms of the benefits for employees, aside from being able to get fit and save money on the cost of running a car, the hire of the bike and equipment comes out of their gross salary, meaning that it’s not taxed. For employers, there’s a reduction in the payment of Employers’National Insurance Contributions, equivalent to saving around 13.8% of the total value of salary sacrifice. For employees, the typical saving is around 32% for a basic-rate taxpayer and 42% for a high-rate taxpayer.
This is all, of course, on top of the indirect savings made by swapping your drive to work for the benefits of cycling. Employees will end up spending less on fuel, insurance and in some cases could even benefit from selling their car if it is no longer required. The environmental benefits are clear, as are the health benefits of regularly cycling to work instead of driving. With everyone trying to save money and get fitter as well as looking out for the environmental impact of their activities, there’s no better time to get involved with the Cycle to Work scheme. With so many people heading towards cycling as a viable transport option, the Cycle to Work scheme will only carry on helping more people get involved whilst still saving money.
