Cycle to Work
Tax Free Bikes!
How does it work?
Monthly payments for the new bike are taken from the employee’s gross salary i.e. before any tax is deducted. You’ll be paying less tax and National Insurance every month that you’re paying off the bike. This means that at the end of the scheme you’ll have saved up to 32% of the actual cost of the bike for basic-rate taxpayers and even more for higher rate ones (and you’ll have spread the cost into manageable monthly payments too). With most providers, there is an end-of-scheme payment, as technically you have been loaned the bike and you have to buy it at what HMRC call a fair market value. This usually works out around 7%, though the Green Commute Initiative only charges £1. The scheme is easy to access and won’t take up much administration time for your employer. There’s a financial benefit for your employer too. They end up paying less employer national insurance contribution so they save about 13% on the cost of the bike.So your employer pays for the bike from you in monthly instalments, and saves 13% in the process and gets a healthier, happier more productive staff member who doesn’t need a parking space.
The Savings calculator will help you see how much you save using the scheme. Sale items cannot be purchased with the online form. Come instore to discuss the best options. Or alternately download the form here