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About the Cycle to work Scheme

The 1999 Finance Act introduced a tax exemption which allows employers to provide employees with bicycles and accessories as a tax-free benefit. The Cycle to Work scheme is part of the Government's Green Transport Plan, promoting healthier journeys to work and reducing environmental pollution.

Operating via salary sacrifice, payment for the bicycle by the employee is by way of deductions from gross pay, typically spread over 12 monthly payments. This gives rise to tax and National Insurance savings for the employee along with VAT and National Insurance savings for the employer.

Benefits to the Employer

Benefits to the Employee

How the Cycle to Work Scheme operates

For more information please contact us here.