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How does a Cycle to Work scheme operate?

Is this a Government scheme?

Yes. Within the Government’s Green Transport Plan, there’s a tax exemption which allows employers to provide cycles and safety equipment to employees as a tax-free benefit. Technically speaking, employees actually hire the bicycles from you, buying them at the end of the salary sacrifice period for a Fair Market Value payment. Cyclescheme will collect this Fair Market Value payment for you, and we can also offer highly competitive finance packages from well known providers.

The employer buys the bikes and safety accessories at full retail price, including VAT which is reclaimed in the normal way, if applicable. The balance is recovered from a reduction in the employee’s gross salary, and employers also benefit from National Insurance contribution savings. The net result? You save money on every bike you process through the scheme!

What does it cost?

Cyclescheme’s core services are free of charge to employers. We only charge if the employer needs us to send hire agreements and vouchers to employees’ home addresses (this is rare). In addition, we can offer advice on whether your organisation can realise Corporation Tax savings of 19% to 40% based on capital asset  epreciation.

What other benefits does the scheme give?

Savings are great, but that’s not the end of the story. Running a Cycle to Work scheme also offers the tangible benefits of a fitter, more motivated, loyal and more productive workforce:

• Brighter, fitter, more punctual staff
• Enhanced benefits package promotes staff loyalty
• Liberated car parking spaces
• Reduced organisational carbon footprint

Cyclescheme Ltd, PO BOX 3809, Bath BA1 1WX. 01225 448933

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