Cycling to work is not everyone’s cup of tea (or even sensible for many) but with the start of a new year and fuel prices continuing to increase now may be a great time to change how you travel to work. Not only that, if you’re a little strapped for cash following the festive blow out then the Cycle to Work scheme could be just what you need.
The following aims to give a quick run through of what the Cycle to Work scheme is, how it works and where to go to find out more, so please read on and see whether this could be for you…
So what is the Cycle to Work scheme?
- It is a tax-free bike purchase scheme where employees can get a bike and cycling accessories with up to a 42% discount if they intend to use the bike for some work journeys.
- You can get cycling equipment up to a cost of £1000, and pay for it in installments (normally over 12 months) from your salary, as part of a salary sacrifice scheme, before buying the bike for a small fee.
How does it work?
- Firstly your employer needs to be signed up to the scheme.
- If they are then you can go to a registered local bike shop, select a bike and cycling accessories and get a quote for the whole package.
- You take this quote back to your employer who, if they agree that this equipment will be used for at least some work journeys, will set up a salary sacrifice plan and then they pay for the bike and accessories.
- Once you get a certificate confirming that all of this has happened you can go back to the bike shop and get the equipment you requested.
- Finally, when the payment plan comes to end you can then pay a small fee to take ownership of the bike and accessories (other options may also be available depending on the scheme your company is signed up to).
Where can I go to find out more?
- Online – put ‘Cycle to work schemes’ into any online search engine and you’ll find a number of websites ready to help. Not only can they calculate your possible savings but they can also give you helpful advice on how to approach your employer if they aren’t already signed up.
- Ask you HR department – you my find that this is a scheme that is already in place where you work and they can provide you with more information about how it all works.
- Ask at your local bike shop – most bike shops are aware of the cycle to work scheme and should be able to explain to you how it works and how to get involved.