How does it work cycle to work scheme?


How does it work cycle to work scheme?

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.

Is there a limit on cycle to work?

The cycle to work scheme does not necessarily have a limit. This is to ensure riders can get the exact bike they need to improve their commute, for example: you may need an e-bike to beat the hills or arrive at work sweat-free, or.

Can I get 2 bikes on cycle to work scheme?

Can I get more than one bike? Yes! If you would like to get two bikes you certainly can – as long as they are both suitable and safe for you to ride, and your total doesn’t exceed your scheme’s maximum limit.

Can you get 2 bikes on the cycle to work scheme?

Who owns the bike in cycle to work scheme?

You pay nothing more. When the bike is 4 years old you take ownership of the bike. If you do not wish to own the bike you and return it and we will refund your deposit. Own it now – you pay either 18 or 25% of the bike’s value (18% if the bike was initially under £500 and 25% if it was initially over £500).

How much does employee pay for cycle to work scheme?

The cycle to work scheme savings: Employees save between 26-40% on the cost of the bike and/or accessories (or more with our offers) – calculate employee savings here.

How often can I buy a bike on the cycle to work scheme?

There is no limit on how many times you use the scheme during your employment, but as you can only have one application per 12 month period, use it wisely!

Can I buy a bike over 1000 on bike to Work scheme?

To improve clarity on this topic and ensure there is no shared ownership, the DfT confirmed in the guidance update that adding funds is no longer allowable. If you wish to get a bike worth more than £1,000 your employer must agree to increase their limit.

How does the cycle to work scheme save me money?

You make a saving by paying for the bike and/or accessories directly from your gross salary (before tax). You sacrifice part of your salary, temporarily lowering your income slightly. Your income tax and national insurance are based on the lower figure, so the amount you pay is less.