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What Is the Cycle to Work Scheme And How Does It Work?

a photo showing a group of people cycling
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The Cycle to Work scheme has been running successfully in the UK since 1999.

Since its implementation, the duration of bicycle journeys has increased, and the number of people using their bikes to commute rather than cars or public transport has gone up too. 

What is the cycle to work scheme?

The Cycle to Work scheme allows employees to spend up to £1000 (potentially more, depending on employer’s limit) on a brand-new bike and accessories to go with it (things like locks, helmets, high viz gear) and pay for it out of their salary, pre-tax, using a salary sacrifice system.

The scheme is managed outside of the company, so there is no additional mound of paperwork for employers! And all employees need to do is pick out their favourite bike.

If you are an employer wondering how to apply for the Cycle to Work scheme, all the information you need is provided by Cycle Solutions. It’s honestly as simple as filling in one form.

What are the benefits to employers?

There are a few benefits to employers offering the scheme. 

By encouraging your staff to cycle each day, it’s likely that you will find that you end up with a more productive workforce. Studies have shown that cycling can boost productivity by anywhere between 4 and 15%. It’s also been shown that physically fit staff members are 27% less likely to make errors than colleagues who are not. Plus, absenteeism is shown to reduce by anywhere up to 80% in employees who cycle to work!

The scheme also means that you will pay less National Insurance. The bike’s payment is taken out of the employee’s salary pre-tax. This means that the amount of salary that is eligible for National Insurance is also lowered. Your National Insurance contributions will be lowered by 13.8% of the value of all of the equipment supplied, which works out as 13.8% cashback for your business.

Finally, taking part in the Cycle to Work scheme shows that your business is environmentally conscious. This will make you look great to prospective customers, business partners, and employees.

What are the benefits to employees?

Employees benefit from the scheme because they get a brand-new bike that they don’t have to pay for upfront! Much more fun than trawling eBay for a second hand bike, which never works properly.

Switching your car for a bike for your daily commute is a great time saver. Firstly, you won’t have to sit in traffic because you can just zip through on your bike. Secondly, cycling means that you are getting a workout while you travel. No more having to get up early to fit in a gym session or forcing yourself to go on the way home from work.

Commuting via bike is also a great way to put an end to your parking woes. Bikes can be parked almost anywhere as long as you remember to lock them up, and you won’t have to pay for a space either!

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