What is the Cycle to work Scheme?

The Cycle to Work Scheme is part of the Government Green Transport Plan aimed to promote healthier journeys to and from work, reduce air pollution and make cycling more affordable and accessible for commuters and leisure riders.

Available to PAYE employees, it enables savings of between 25% and 42% to be achieved on Recommended Retail Prices for new bikes and qualifying accessories.

The scheme allows employers to loan their employees cycles and cycling equipment as a tax-free benefit. It is important to note that the tax break is on the use of the bike, not ownership.

How does it work?

It is quite simple – your employer buys the bike/accessories and you pay them back through monthly deductions from your salary over certain amount of time (depends which scheme).These deductions are made from your Gross Salary, thereby reducing the amount of your taxable income and effectively reducing the cost of the bike to you.

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