Cycle To Work Scheme

The 1999 Finance Act introduced a tax exemption which allows employers to provide employees with bicycles and accessories as a tax-free benefit. The exemption applies as long as the bicycles are used, at least in part, for journeys made between the employee's home and their place of work (or part of those journeys). The Cycle to Work scheme is part of the Government's Green Transport Plan, promoting healthier journeys to work and reducing environmental pollution.

Employees taking advantage of the scheme will enjoy savings of up to 50% of the retail price of their chosen cycle.This operates by the salary sacrifice scheme.Payment for the cycle by the employee is by way of deductions from gross pay. This saves on tax and NIC for the employee and national insurance saving for the employer. This is a tax incentive aimed at encouraging employees to cycle work therefore reducing pollution,avoiding congestion charges,low cost commuting, no parking charges and enjoying a healthier lifestyle.

Under the scheme the employer buys the bike and reclaims the VAT on the purchase then leases the bike to the employee.The employee pays an agreed amount each month out of the pre-taxed earnings which then reduces income tax and NIC. At the end of the agreement the employee can buy the bike for a nominal amount or trade it for a new bike.

PLEASE REFER TO THE DEPARTMENT FOR TRANSPORT WEBSITE FOR MORE DETAILED INFORMATION.
Department For Transport - Cycle to Work Scheme implementation guidance

Electric Bikes, Scooters, Clothing and Spares

Website Design by TechSolus