Is the cycle to work scheme any good?

The Cycle to Work scheme also allows you to buy accessories alongside the bike and this is definitely something you should take advantage of. In fact, we reckon it is worth using the scheme to buy two bike locks, a good set of lights, a helmet and some high-quality bibshorts.

Does cycle to work actually save money?

The saving is achieved by paying for the bike and/or accessories directly from your gross salary (before tax). This means your income tax and national insurance are based on your salary less the cost of the bike and/or accessories. … Hence, the amount of tax and national insurance you pay is less.

Does cycle to work scheme affect credit score?

Access to these items becomes affordable as all items can be paid for directly from your salary over 12, 24 or 36 months. All payments are interest free and there are no credit checks.

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Do you have to pay back cycle to work scheme?

Own it later – you pay a deposit of 3 or 7% of the bike’s value (3% if the bike was initially under £500 and 7% if it was initially over £500). You pay nothing more. When the bike is 4 years old you take ownership of the bike. If you do not wish to own the bike you and return it and we will refund your deposit.

Do I own the bike at the end of cycle to work?

How does the Cycle to Work scheme work? … Because it was set up to promote work journeys rather than cycling in general, your employer technically remains the owner of the bike once you finish the hire period.

How much tax do you save on cycle to work scheme?

With Ride-to-Work, you can get a tax-free bike, which for most people means they save a minimum of 32% of the cost.

Can you pay off cycle to work scheme early?

If an employee leaves the scheme early, the bike or equipment will remain the property of the employer. … As such, they will no longer be able to take advantage of the savings made by paying for the bike or equipment from their gross salary before tax.

How many times can you use cycle to work scheme?

There is no limit on how many times you use the scheme during your employment, but as you can only have one application per 12 month period, use it wisely!

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How long do you pay cycle to work scheme?

The most attractive option for employees will be to pay a small, refundable deposit (3% or 7% of the equipment value*) and continue to use the bicycle for an extended period of up to 36 months. At the end of this period, Bike to Work Ltd will refund the deposit if the employee does not wish to keep the bicycle.

Is cycle to work a salary sacrifice?

Cycle to work operates as a ‘salary sacrifice’ employee benefit. … The salary sacrifice is taken from their gross salary (before tax) which means that the employee will pay less Income Tax and National Insurance (NI) and that the employer will reduce their National Insurance Contributions (NICs) bill.

Does cycle to work cost the employer?

Does the scheme cost anything for an Employer to implement? The scheme is free of charge to set up and costs nothing to run. The Employer makes the initial purchase and then leases the bike/equipment to the Employee via a salary sacrifice, until the full amount is recovered.

How much do you pay on the bike to work scheme?

The scheme applies to bikes and equipment up to the value of €1,250 and for pedelecs or e-bikes and related safety equipment up to the value of €1,500. As an employee you can use the scheme once every 4 years.

What companies use cycle to work scheme?

Cycle to Work Scheme

  • Green Commute Initiative.
  • Cyclescheme.
  • Halfords.
  • RG Cycle to Work.
  • c2w Support.
  • Cycle Plus.
  • Salary Extras.
  • Bike2Work.
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How does the cycle to work scheme work UK?

How it works. The cycle to work scheme allows employees to obtain commuter bikes and cycling accessories through their employer, whilst spreading the cost over 12 months and making unbeatable savings through a tax break. … After 12 months the employer will have recovered their costs and generated up to 13.8% in savings.