I recently read a report that the benefits of cycling and walking 'outweigh air pollution risk' in cities.
There are many major cities in the world where the residents and commuters avoid walking or cycling for fear of the harmful effects of pollution.
However, researchers stated that in respect to air pollution, London is one of the safer cities in the world in which to cycle and walk, finding it safe to do so all day.
Cycling to work is commonplace in The Netherlands, where there is almost one bike for every citizen.
In other European countries, such as Austria, Denmark, Finland, Germany, Norway, Slovenia and Sweden, 81% of households own a bicycle.
Whereas, in the UK on average only 40% of households own a bicycle (your child's bike doesn't count)!
Cycling is visibly more and more popular these days but did you know that besides the obvious health benefits the humble bicycle can also be of taxable benefit to your company?
Currently 180,000 people within the UK participate in the Cycle to Work Scheme.
The Cycle to Work Scheme is a UK Government tax exemption initiative to promote healthier lifestyles whilst also reducing environmental pollution.
It allows employers to loan cycles and cyclists’ safety equipment to employees as a tax-free benefit. The scheme is available to all employers including limited company contractors where they are the only director/employee of the company.
There are two options for setting up a Cycle to Work Scheme:
1. Employers can loan cycles and cyclists' safety equipment to employees as a tax-free benefit.
2. A salary sacrifice arrangement Cycle to Work scheme where the employee reduces his / her salary. Limited Company contractors, as employees of their companies, can also take advantage of the cycle to work scheme but do not have to make a salary sacrifice.
They can also benefit from a number of tax savings.
- It may be possible to reclaim VAT on the bike purchase, making it cheaper to buy
- The company’s Annual Investment Allowance can be used to get 100% tax relief on corporation tax
- As the bike is paid for from gross earnings, not personal income, there is a potential saving on income tax
- If the contractor buys the bike from their company – although the company will pay corporation tax on the sale – the contractor can potentially make tax savings on the purchase
This is an easy benefit to set up if you have the right support.
If you'd like to enquire how you could benefit from the Cycle to Work Scheme, please get in touch for a free consultation at firstname.lastname@example.org or call 0330 403 0010.
I caught the cycling bug back in 2016 and since I have raised hundreds of pounds for charity!
I recently raised £2344 for Save the Children by taking on the Maidstone Duathlon which consisted of a 9.5km run 42km bike ride and finished with a further 3.5km run!
My recommendation is to save tax, better your health and raise some money whilst you are doing it!