The Cycle to Work Scheme (generally known as the Bike to Work Scheme) is a tax incentive scheme to encourage employees to cycle to work. Under the scheme an employer can pay for a new bicycle (including bicycle accessories) and the employee then repays the cost in regular instalments from their gross salary.
How does the government cycle scheme work?
How it works. The cycle to work scheme allows employees to obtain commuter bikes and cycling accessories through their employer, whilst spreading the cost over 12 months and making unbeatable savings through a tax break. … The employee receives their bike and starts their salary repayments.
Is the bike to work scheme worth it?
The Cycle to Work scheme also allows you to buy accessories alongside the bike and this is definitely something you should take advantage of. In fact, we reckon it is worth using the scheme to buy two bike locks, a good set of lights, a helmet and some high-quality bibshorts.
Is there a government scheme for bikes?
The Cycle to Work Scheme is a Government initiative that allows you to save up to 39% on a bicycle and/or safety equipment.
How does bike 2 Work scheme work?
The scheme allows Employees a tax exemption whereby they save on Income Tax and National Insurance contributions by having the cost of the bike/equipment deducted from their gross salary via salary sacrifice. Payment is to be made in the form of interest free weekly/monthly instalments.
Can I pay off my cycle to work scheme early?
If an employee leaves the scheme early, the bike or equipment will remain the property of the employer. … As such, they will no longer be able to take advantage of the savings made by paying for the bike or equipment from their gross salary before tax.
Do you own the bike at the end of cycle to work scheme?
The cycle to work benefit is a tax-efficient hire benefit. As such, you do not own the bike in the first instance (albeit it is in your care and you can use it as if it were your own).
How long do you pay Cycle to Work scheme?
The most attractive option for employees will be to pay a small, refundable deposit (3% or 7% of the equipment value*) and continue to use the bicycle for an extended period of up to 36 months. At the end of this period, Bike to Work Ltd will refund the deposit if the employee does not wish to keep the bicycle.
How many payments do you make on the Cycle to Work scheme?
Cyclescheme savings
With Cyclescheme, you pay nothing up front, and then there are 12 monthly payments.
How does NHS Cyclescheme work?
Cycle to Work Scheme Description
The Cycle to Work Scheme is a salary sacrifice scheme, which means that instead of making a direct saving on the purchase you make, the saving will be made from the money being taken from your gross wage (pre-tax and national insurance).
What can I buy on bike to Work scheme?
What equipment does the Bike to Work Scheme cover?
- New bikes and tricycles.
- New electric bikes (electrically-assisted bikes that require some effort to propel)
- Cycle helmets.
- Bells and horns.
- Lights (including dynamo packs)
- Mirrors.
- Mudguards and skirt guards.
- Cycle clips.
Can I claim my bike on tax?
There are generally two ways you could claim the cost of your personal bicycle: You could claim it as a work-related expense if you bought the bicycle specifically for work. You might have a job outdoors that requires you to get around and a bicycle is the best way to do it. … Or you could claim it as a travel expenses.
Can I buy a bicycle through my business?
You, as the employer, can purchase a bicycle through your Limited Company for the use of an employee. … At least 50% of the bicycle’s use should be for work purposes. Ownership of the bike must remain with the company through the loan period.
How does the cycle to work scheme save me money?
Cycle to Work is a ‘salary sacrifice’ benefit. What does that mean? You make a saving by paying for the bike and/or accessories directly from your gross salary (before tax). … Your income tax and national insurance are based on the lower figure, so the amount you pay is less.