With sustainability and health a growing concern in people's lives, many companies have been looking for ways to promote a healthier and more ecologically responsible lifestyle among their employees. The Cycle to Work scheme in the UK offers a fantastic opportunity for companies and their employees to embrace cycling as a way of getting around.
What is the Bike to Work Scheme?
The Cycle to Work Scheme is a tax initiative set up by the UK government to encourage the use of bicycles for commuting to work. Introduced as part of the 1999 Transport Act, this scheme allows employers to provide bicycles and cycling equipment to their employees with tax advantages.
Some of the authorized providers of the Cycle to Work scheme are Cyclescheme, Bike2Work Scheme or Green Commute Initiative.
How does it work?
- Partnership with Authorised Suppliers: Your company enters into partnerships with authorised suppliers participating in the scheme. This can include local shopkeepers or large bicycle sales companies.
- Selection of Bike and Equipment: Choose the e-fatbike and the necessary accessories (helmets, locks, lights, etc.).
- Hire and Sacrificial Wage: The company buys the e-bike and rents it to you through a sacrificial wage agreement, where the cost of the bike is deducted from your gross salary each month. This results in a reduction in your taxable income.
- Final Purchase: After a period of 12 to 18 months, you can choose to buy the bike for a lower price or continue renting.
Benefits
For Companies:
- Tax Incentive: Savings on National Insurance Contributions (NIC) due to the reduction in employees' gross salary.
- Promoting Health and Wellbeing: Healthier and happier employees, resulting in substantially higher productivity.
- Improved Corporate Image: Participation in the scheme will contribute to a more positive reputation for the company, which will be seen as a sustainable and responsible employer.
For Employees:
- Financial Savings : Possibility of saving up to 32% on the cost of bicycles and accessories through tax savings.
- Improved Health : Significant physical and mental health benefits from incorporating cycling into your daily routine.
- Stress reduction : Enjoy more pleasant and predictable daily journeys, avoiding traffic and public transport delays.
The Cycle to Work scheme is an excellent opportunity to promote sustainable mobility, improve health and save money for both the company and its employees. Don't miss out on this opportunity to turn your daily commute into a more pleasant and sustainable experience. Join the community of cyclists looking to change not only the way they travel, but also the world around them. Be part of this positive change.