Bike To Work Scheme

cycles tax free

UK cycle to work scheme is a government initiative that allows all employers in the UK to offer free tax cycles and cycling equipment for their employees. As an employee, you can find savings up to 50% on the value of £ 1,000 cycles and cycling equipment.

The scheme was implemented in 1999 under the Finance Act, and aims to promote the options for commuters travel health and reduce pollution. So far, thousands of employees take advantage of these incredible savings, why not get involved too?

Who is eligible for the cycle to work scheme?

Employers of all sizes in the public, private and voluntary sectors can implement a system of tax exempt loan for their employees. Employees wishing to participate must be paid by the PAYE system. The scheme is not available for independent or employed in the national minimum wage.

What kind of bike that I can buy, what about the equipment?

All types of bikes are proposed under the scheme. The definition of a bicycle is a cycle or motor tricycle with two or more wheels that is not classified as a motor vehicle, even if electrically assisted cycles are also covered by this.

You can also spend your money on equipment cycle, including all safety equipment such as helmets and lights, as well as clothing, bags, tools and spare parts.

You can spend up to £ 1,000 in total, including equipment. The award may cover more than one bike, which is also acceptable. For example, you may need to cycle home form to your station, then the other end of the line of work.

How does the scheme cycle?

Cycle to work scheme offers discounts by removing the tax burden that would otherwise apply. For example, if you buy a bike from outside the system, you have already paid tax on your money, and also have to pay VAT on the bike. The system eliminates these fees, offering VAT free bike and you can pay directly from your salary before taxes on income.

• Owner of the equipment is not transferred to the employee during the loan period
• Employees use the equipment mainly for qualifying journeys, ie for travel between home and workplace for employees, or part of these trips (eg, station), or journeys between one and another in the workplace
• The cycle is made available to the general scheme for employees of the employer concerned and not confined to directors or available to them on terms more favorable.