You would be forgiven for thinking it’s too good to be true – a government scheme that provides employers with a net profit and employees with an attractive benefit that they are increasingly coming to expect.
But thanks to the Government’s Green Transport Initiative tax breaks, the Cycle to Work scheme unlocks easy to access savings all round.
Even better, numerous studies have shown that staff who cycle to work are up to 15% more productive, more energised, and have far fewer lost hours due to commute delays and illness than those using any other mode of transport.
Under the Cycle to Work scheme, the employer takes possession of the bike.
The employee then pays back their company by salary sacrifice over the course of a year. Because the money is taken from the employee’s paycheck before the tax is deducted, they save up to 35% on the value of the bike.
It’s like a sale all year round, combined with interest-free finance - and the repayments are taken automatically from gross pay.
After three years, the employee typically pays a small deposit to continue to lease the bike cost free for three more years before the bike becomes theirs outright. Meanwhile, the employer pockets savings of up to 14% on National Insurance contributions.
You might expect this scheme to require a lot of admin overhead for your HR department, but this isn’t the case.
There are a number of scheme providers, such as Cyclescheme, whose job it is to get you set up in no time at all.
They then provide an online portal where the employee can apply for their voucher, and take care of all the paperwork.
Here at Ribble Cycles, we love helping people to find the right bike, whether it’s an economical and low-maintenance commuting machine, or something sportier that’s suited to weekend sportives and races as well.
The Cycle to Work scheme caps the voucher value at £1,000, so we offer a number of industry-leading, award winning bikes at this price point.
And any customer who wants to go for a higher-value build can use the voucher for part payment, and pay the remainder themselves.
At our Birmingham showroom we have all of our models on display and ready for you to try.
Our knowledgeable and helpful staff are here to assist you with choosing a bike which fits you perfectly, and to guide you through our custom Bike Builder process.
We’re also always on hand to help explain why, and how you should go about setting up a Cycle to Work scheme in your workplace. You can call us 7 days a week on 0121 634 3468, or email us at firstname.lastname@example.org