If your organisation is looking to facilitate and promote increased bike commuting, the introduction of a salary sacrifice cycle to work scheme could be a bit of a no-brainer!
Cycle to work schemes enable employees to make savings of up to 47% on the cost of a new bike (which is HUGE!) whilst the employer also makes savings of 13.7% through NI contributions.
Your employees save money, your organisation saves money… and all whilst you are helping to improve staff health and wellbeing, reduce parking demands and reduce environmental impacts.
How does this all work?
Salary sacrifice is where an employee agrees to give up part of their pre-tax salary in exchange for a benefit from their employer, in this case, the hire of a cycle and/or cycle accessories. Since a portion of the salary is foregone, the employee pays less tax and NI contributions on the amount sacrificed.
What does that mean in terms of savings?
A basic rate taxpayer (32%), choosing a bike worth £1,000, would only pay £680. That’s a huge saving of £320!
The more tax you pay, the more you stand to save. A higher rate taxpayer (42%) choosing a bike worth £1,000 would only pay £560. A whopping saving of £420!
How do we get started?
There are a wide range of providers on the market able to administer cycle to work schemes. We personally think that the Halfords Cycle2Work scheme is one of the better ones.
Halfords are the UK’s leading cycle retailer, and through their Halfords and Tredz brands, they are able to provide access to a huge range of bikes, with stores across the whole of the UK.
Added to that, their scheme is super simple to set up and use and comes with some great added benefits.
To find out more just get in touch, and we will put you in touch with the relevant team at Halfords. We can also answer any questions you may have.