By taking advantage of new legislation enacted in the Income Tax (Earnings and Pensions) Act 2003, an employer is able to provide a bicycle and bicycle safety equipment to employees to be mainly used to cycle to work. Using this system both the employer and employee is able to benefit from the tax breaks this system offers.

Benefits To Employees

The employee incurs no Income Tax and National Insurance on this benefit. Where there is a direct business benefit from implementing cycle to work (for example as part of a Green Transport Plan or improving employee health/attendance which our schemes all deliver) VAT may be reclaimed and passed on to staff. In total, combined savings on Income Tax, National Insurance and potentially VAT contributions of up to 50% of the value of the bicycle and cycle safety equipment can be achieved.

Benefits To Employers

Running a cycle to work scheme incurs no direct costs for employers who also avoid the NI contribution of 12.8% on the value salary sacrificed and achieve the benefits of a green transport or environmental compliance plan. Both parties benefit from the employee being fitter and healthier, and the scheme contributes to a recruitment and retention programme and helps combat absenteeism.

At Bike to Be we offer two methods of facilitation for this scheme. One is the national Cyclescheme the other is our own Bike to Be scheme. To discuss setting up either of these schemes, either as an employer or employee, don't hesitate to contact us for further information.