By subsidising the costs of bicycles and safety accessories, the Government is encouraging us all to cycle to work instead of drive our cars. Under the cycle scheme, organisations " buy " bikes which employees can Ďloaní from the organisation. The bike is paid for out of the employeesí gross salary, which means each pound goes further as itís not been reduced by tax and NI. If the employer is VAT registered then VAT can also be deducted, totalling cost savings of up to 50%. So basically, you get twice the bang for your buck and you donít pay it all at once!
Employers save money too, as well as having the advantage of a healthier workforce. Half of all the journeys undertaken in the UK are less than two miles and nearly three-quarters are under five miles. Most people get in their cars for these short journeys (not good for your car either), yet these are easy cycling distances and hardly raise a sweat.
On top of the health benefits and the pleasure of being out on the bike, this scheme offers substantial savings on the cost of a bike and cycling equipment and requires no effort besides filling in the initial form. Your spending goes almost twice as far with this cycle scheme and thatís not even counting any savings on gym membership!
Part of the green transport plan, Cycle to Work is a UK Government scheme in which virtually anyone in paid employment can take part. You call into our shop ,choose a bike and any appropriate equipment. We fill out a simple cycle to work scheme form which you take home and then apply for on line - your employer will have given you the appropriate link . Its as easy as that !! The costs of the cycle are then typically divided over 12 or 18 months and are taken out of your gross salary by your employer. This reduces the net cost considerably (up to 50%) as the whole slice goes to paying for the equipment, including the amount otherwise taken out for NI and tax. (Some example scenarios below).
This depends on whether your organisation can reclaim the VAT and on the level of tax you pay (the higher your tax bracket, the more you save). The most you can save is nearly 50% of the cost of the bike and equipment. Itís also comes in handy to be able to spread payments rather than having to fork out the whole amount in one go.
Hereís an example of how a Cycle to Work scheme helped 'Louise':
The cost to Louise is:
Any bike you'd like to cycle to work which means pretty much any bike on our site including electric bikes, but excluding children's bikes and you can also choose from a wide range of cycling safety accessories. Cyclists' safety equipment is not legally defined but could include:
If your employer is already running a scheme then you can take your pick of cycles from this site or call in and see us.
If your organisation is running a cycle scheme then anyone at any level who fulfils the following criteria can take part: you have to be over 18, in a salaried job and on PAYE. Your contract of work must cover the duration of the hire period. If the payments take you below the minimum wage level then you cannot take part.
The Cycle to Work scheme (York) will provide you with fitter staff as well as present financial savings for the organisation and your employees. The scheme can also offer a valuable contribution to your companyís transport plan. Regular cyclists tend to be healthier than non-cyclists which contributes to a more motivated workforce with reduced sick leave. Cyclists may even arrive in work ahead of their car-driving colleagues stuck in traffic jams.
In addition, donít forget the benefits of reduced need for car parking spaces and a 'greener' corporate image for cycle-friendly employers. Thatís a whole lot of positives even before going into the financial advantages.
Cycle to Work is a government sponsored scheme for employees to buy bikes and approved cycling equipment as a tax-free benefit. Employers can claim back VAT, save on National Insurance payments and claim capital expenditure. At the end of the agreed period, you may sell the equipment to the employee(s) for a nominal amount, or retain ownership and let the employees use the equipment for free.
All employers can take part in the cycle scheme. All employees in the company must have the opportunity to take part as long as they fulfil the following criteria:
By making use of our existing scheme we will minimise the paperwork for you or for your HR department, making the scheme easy and quick to administer Here in York our scheme has helped hundreds of City of York Council employees to purchase bikes as well as Asda staff , York University staff ,North Yorkshire County Council staff, York NHS employees and The Water Board as well as many small businesses, .
Guidance and further details on the benefits and implementation of Cycle to Work Schemes can be found on the website of the Department of Transport under Sustainable Travel. A comprehensive set of Cycle to Work Scheme FAQs can be found in this downloadable leaflet which will help to answer any additional questions.
If you would like to discuss further with us simply use the information provided on our contact page or call into see us.