What is Cycle to Work Scheme?
How do you save at least 30% On the Cost of the bike?
Cycle to Work Schemes are a Government initiative to encourage more people to cycle to work. To qualify, you need to be an employee and paid in a PAYE Scheme and have an employer who is either signed up to a Scheme or is willing to help you through a scheme that does not require him to be a member.
How does it work?
Your employer purchases the ebike of your choice through the scheme, such as Cyclescheme https://www.cyclescheme.co.uk/ and you hire it from the employer and pay for it through your payroll over a period of time – often 12 months – but now it can be longer. You make the payments through a “Salary Sacrifice”. That means that you make the payment from your wages before the deduction of Tax and NI. depending on your income tax status, you will save at least 30% on the cost of the bike by the reduction in Tax and National Insurance you will pay.
What do you do?
If you can find out which scheme your employer has joined, you can usually find a calculator which you can use to calculate your savings. Many larger companies enable you to apply online through their HR Departments. But if your employer is not a member of a scheme and your employer agrees, you can apply through Green Commute Initiative.
You can either get a Certificate from the employer’s scheme and then decide on which ebike you want from a participating retailer, or you can choose your bike and retailer and then apply for the Certificate which you need to hand to the retailer when you collect the bike.
So, What is the first action to take?
Find out what scheme your employer is signed with or find if your employer will do Green Commute Initiative, and look for your ebike.
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