Cycle to work schemes offer the opportunity for employees to purchase new bicycles and equipment in a tax efficient way. They are approved by HMRC.
They operate as a salary sacrifice [or salary exchange] arrangement, meaning that payment for the bicycle and/or equipment is taken from the employees gross pay. This allows them to save Income Tax and National Insurance which can total several hundreds of pounds.
Aside from the obvious benefits to the employees, a cycle to work scheme will also offer benefits to employers. The scheme can:
Improve the health and fitness of employees, helping to increase moral and reduce sickness
Reduce parking and congestion problems
Improve the organisations environmental profile
Improve the employee benefits offering to help make you an employer of choice
Generate employer National Insurance savings to help offset other benefit cost