On your bike – Cycle to Work schemes

Source: HM Revenue & Customs | | 23/01/2019

There are special rules involving bicycles usually referred to as 'Cycle to Work' arrangements. The Cycle to Work scheme was introduced almost 20 years ago to help promote the use of healthy ways to commute to work using an environmentally friendly mode of transport.

Employers of all sizes across the public, private and voluntary sectors are eligible to take part in the scheme with the proviso that no employees or groups of employees are excluded. Note that the Cycle to Work scheme cannot be used if in doing so this would reduce an employee's gross pay below the National Minimum Wage.

The scheme allows employers to provide (technically loan) bicycles and cyclists’ safety equipment (worth up to £1,000) to employees as a tax-free benefit. Where the scheme conditions are satisfied employees can benefit from a tax and National Insurance Contribution (NIC) reduction of between 32% and 42% through a salary sacrifice scheme. In addition, there is no employer liability to NICs.

What happens at the end of the loan period?

The Cycle to Work benefits only relate to the loan period, however, it is commonplace for an employer or a third party bicycle provider to offer the employee the bicycle / equipment they have been using for sale after the loan period has ended. The bike may be offered to the employee for sale at a fair market value, but this must be done as a separate agreement.

Like to set up a "Cycle to Work" scheme for your business?

If the above scheme is something you'd like to consider for your business please call for more information.



Contact Us

13 West Street
Exeter
Devon
EX1 1BB
Tel: 01392 823999

Also in Seaton:

8-10 Queen Street
Seaton
Devon
EX12 2NY
Chris Hammett
Tel: 01297 624188  

 

Cookie Policy

Latest News

National Insurance if you work abroad
20/08/2019 - More...
If you move abroad, it can often be advantageous to continue paying your UK National Insurance Contributions (NICs) in

Tax if you work abroad
20/08/2019 - More...
If you are leaving the UK to work abroad for at least one year (or permanently), there is a requirement to notify HMRC.

When can you increase your rental income?
20/08/2019 - More...
The ability to increase the rent on private rentals is driven by the tenancy agreement. This is an agreement between the

Newsfeed Search


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login