New research suggests cycling to work could almost halve the risk of developing heart disease and cancer. A five-year study of more than a 250,000 people found regular cycling cut the risk of death from any cause by 41%, the incidence of cancer by 45% and heart disease by 46%
(Dr Jason Gill, University of Glasgow, 2017).
The scheme enables an employee to get a new bicycle and/or safety equipment and pay for it through their salary sacrifice, typically saving them between 32% and 45% off the cost (depending on their personal rate of tax).
Traditionally, Cycle to Work schemes have been operated through one retailer or online shop. With the My Benefits World scheme employees can choose to use a range of local retailers or nationwide high-street chains.
How is it paid for ?
The company buys the bicycle and the employee repays your business through Salary Sacrifice over a period of 12-24 months (most employers opt for 12 or 18 months). The employer, can set a limit on how much employees can spend on a bicycle/accessories (up to a maximum of £1000).
A free extension to the hire agreement offers the best deal for employees at the end of the repayment period. The employee then has the option to own the equipment at the end of the term when the transfer of ownership (Fair Market Value Payment) is nil (£0).
If the employee leaves the company prior to the end of the repayment period (the period when your business has recovered the cost of the bicycle from salary), any remaining money owed is collected from their final salary payment.
Why offer this benefit ?
Aside from the health benefits, the main reason for offering a Cycle to Work scheme is that it is a highly visible employee benefit which provides easily quantifiable saving.
In regards to the health benefits, cycling is a low impact type of exercise, so it’s easier on the joints than running or other high-impact aerobic activities. Cycle to Work is also good for your green credentials. Every 10km cycled instead of driven saves 1500 kg of greenhouse gas emissions each year.
Your business will save 13.8% saving for each £1 of employees salary spent on bicycles in. Return on a £500 bicycle would be £91.50 in Employers NIC savings to the business. Maximum return on a £1000 bicycle is £183 in Employers NIC savings to the business.