Overview of the Cycle to Work Scheme

The nation is being encouraged to use public transport less as we transition back to something more resembling normal life. Allied to the movement for us all to get more active, there is undoubtedly going to be an increase in the use of bikes.

With this in mind, we thought it would be useful to offer an overview of the Cycle to Work Scheme.

What is it?

Cycle to Work is a Government Scheme which provides tax benefits to employers and their employees when bikes are offered as part of an employment package.

How does it work?

The scheme is a salary sacrifice arrangement. An employee agrees to give up part of their pre-tax salary in exchange for the provision of a bike by their employer. This results in a reduction in tax and National Insurance payments.

The employer will set up a scheme, usually through a provider. The employee will enter into a hire agreement directly with the scheme provider, with the hire charge being paid by the employer. There is no limit on the value of the cycle and safety equipment that can be provided,

What are the conditions?

The following conditions must be met:

  • An employee must not ever own the cycle at any point during the hire period;
  • At least 50% of the cycle's use must be for “qualifying journeys” i.e. commuting for work purposes;
  • The offer of the use of hired cycles must be made available across the whole workforce

If this scheme is of interest then you should take a few minutes to review the guidance here.

If the scheme is of interest and you would like to chat it through then please give us a call.

yaa-ifoty-2019.jpg receipt-bank.jpg rb-cert-partner.jpg handpicked-accountants.jpg botm-winner-2019-20.jpg by-bsb-2019.jpg eba-sme-oty-2019.jpg

Home | Contact us | Accessibility | Disclaimer | Help | Site map |

© 2020 Sheards Chartered Accountants. All rights reserved.

Sheards is the trading name of Sheards Accountancy Limited. Registered in England & Wales No 06837228.

Sheards Chartered Accountants, Vernon House, 40 New North Road, Huddersfield, West Yorkshire HD1 5LS
We use cookies on this website, you can find more information about cookies here.