Implementing a Cycle to Work Scheme

Source: HM Government | | 28/06/2017

The Cycle to Work scheme was introduced in 1999 to help promote a healthy commute to work.

The scheme allows employers to provide (technically loan) bicycles and cyclists’ safety equipment to employees as a tax-free benefit. Where the scheme conditions are satisfied, employees can benefit from a tax and National Insurance Contributions (NICs) reduction of between 32% and 42% through a salary sacrifice arrangement; there are also possible employer NIC savings.

The cycle to work benefits only relate to the loan period, and it is commonplace for an employer or a third party bicycle provider to offer the employee the bicycle / equipment they have been using for sale after the loan period has ended. The bike may be offered to the employee for sale at a fair market value but this must be done as a separate agreement.

Planning note: Employers of all sizes across the public, private and voluntary sectors are eligible to take part in the scheme with the proviso that no employees or groups of employees are excluded. We can help you set up a scheme and advise on the subsequent sale of the bike. 



Accountancy service

“Are you feeling confused about how to comply with HMRC’s accountancy requirements?

Read more...

Your business

Your business

Are you a Start-up business? Are you a little confused about the different types of companies? 

Read more...

Virtual Director

Virtual Director

Are you looking to grow your business? A Virtual Financial Director can help you take your business to the next level.

Read more...

Xero

XERO

Ensure that your business has the edge over your competitors and incorporate Xero into your business, today!

Read more...

Latest News

New Finance Bill to be published
20/07/2017 - More...
The government has confirmed that a new Finance Bill will be introduced as soon

Making Tax Digital – common sense prevails
20/07/2017 - More...
A new timetable for the introduction of Making Tax Digital (MTD) has been

Class 1 NICs zero rate band
20/07/2017 - More...
Many director shareholders take a minimum salary and any balance of remuneration

Search News


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login