Tax Free Bikes for Work!
The Governments Green Transport Plan gives a tax exemption that allows employers to provide cycles to employees as a tax-free benefit. Cycle to Work schemes have been set up that carry out the administration on behalf of participating employers. And no the bike doesn't have to be just for work.
The most widely used scheme is Cyclescheme that operates through independent cycle retailers. Other schemes that we participate in are OnYourBike and CyclePlus. We also offer our own scheme to local small business who can see the benefit in terms of health, well being and the tax free saving for their employees but who do not want to sign up to a large scheme for a smaller work force.
Each scheme whether managed through a third party or managed by the employers payroll department will result in significant savings on the purchase of new a new bike and equipment. Up to 50% in some cases. Please follow the links to check how much you can save with the schemes online calculator. A £1000 limit is typical on most schemes, as above this amount the employer must have a consumer credit licence.
The employer initially reclaiming the VAT and then leasing the bike to the employee for a fixed term, normally 12 months makes the saving. The monthly lease amount is taken from the employee's pre tax pay resulting in a tax saving in the employees take home pay packet. The employee must have a permanent position, pay tax under PAYE, be aged 18 or over, and earn more than the national minimum wage once the bike payments have been deducted from the gross salary.
All schemes charge us a commission. That is how they make their money, so it will not be possible to offer schemes on clearance items or run schemes in conjunction with loyalty cards. It may be possible to pass the commission on to you on sale or clearance items which you will be more than compensated for in your overall tax saving.
We will be more than happy to come to the workplace and demonstrate bikes or please contact us by telephone or email for more information.