About Cycle to Work
This scheme enables employees to get a new bicycle and/or safety equipment and pay for it through salary sacrifice, typically saving them between 28% and 42% off the cost.
Book a Free Consultation TodayWhy offer this benefit?
Healthy living
A five-year study of more than 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%.
Better for the environment
Every 10km cycled instead of driven saves 1500 kg of greenhouse gas emissions each year, so helps with any goals to reduce your business’s carbon footprint.
Feeling valued
A bicycle is a very visible employee benefit, acting as a constant reminder to the employee of the value of working for your business.
How it works?
The scheme enables employees to get a new bicycle and/or safety equipment and pay for it through salary sacrifice, typically saving them between 28% and 42% off the cost (depending on their personal rate of tax).
Employees can use any new bicycle retailer they wish, this could be a specialist local shop with expert advice, an online retailer or a national chain such as Evans or Halfords. They simply enter the make and model of the bicycle and/or safety equipment they require along with details of the retailer into the Benefits Platform and our team will contact them to confirm their order.
Once we get approval from the employer to process the order the cycle to work certificate is usually dispatched within 48 hours. We do not require payment from your business before releasing the certificate. When the employee has finished repaying the cost of the bicycle there is nothing more to pay, unless they leave the employment of the company, in which case the standard HMRC “Fair Market Value” structure applies.
Set-up requirements
Employer confirms the limit they wish to allow employees to be able to spend up to on a bicycle /accessory. The minimum order is £50, and the maximum is £10,000, the employer can choose to cap the amount anywhere between these figures.
How is it paid for?
The employer buys the bicycle, and the employee repays your business through Salary Sacrifice over twelve equal monthly payments. If the employee leaves during the repayment period any outstanding amount is recovered from the final salary.
Tax Status
Tax and NI Efficient for employee, no BIK charge and employer saves 13.8 % in NI.
