Cycle to Work Scheme
Cycle to Work scheme is a UK Government tax exemption initiative introduced in the Finance Act 1999 to promote healthier journeys to work and to reduce environmental pollution. It allows employers to loan cycles and cyclists' safety equipment to employees as a tax-free benefit.
Cycling to work can save money, drastically improve your health and reduce the strain placed on the roads by traffic. The Cycle to Work scheme lets you ‘hire’ a bike via salary sacrifice, paying for it over the course of 12 months and thus spreading out the total investment. In theory, at the end of the hire period, the employee pays a fee if they want to keep the bike – but this is rarely enforced. The cherry on top is that the payments are exempt of tax, leading to savings of up to 42 per cent – though the value of the savings will depend upon your earnings.