In the United Kingdom, the Bike to Work Scheme gives employees tax-free bikes and accessories to encourage them to bike to work. It’s been around since 1999 and is available to all UK employees and employers.
Through salary sacrifice, employees can buy a bike and accessories. Pre-tax income can be used to pay for the bike and accessories, so employees can save a lot. Additionally, employers benefit from the scheme since it helps reduce absenteeism and improve employee health.
First, employees have to find a participating employer. A full list of participating employers can be found on the government’s website. Employees can choose a bike and accessories from a list of approved suppliers once they find a participating employer.
All types of bikes are welcome, including road bikes, mountain bikes, hybrid bikes, and electric bikes, as well as accessories like helmets, lights, locks, and panniers. A bike and accessories can cost up to $1,000 through the scheme.
After choosing a bike and accessories, employees can pay for them through salary sacrifice. Payments will be made from the employee’s salary, and the bike and accessories will be deducted from their gross pay. The employee will use pre-tax income to pay for the bike and accessories, saving a lot of money.
It can also help employers reduce absenteeism and improve employee health and productivity. Regular cycling improves cardiovascular health, reduces chronic disease risk, and improves mental health. Employers can promote a healthy lifestyle and better employee well-being by encouraging employees to cycle to work.
Additionally, the scheme encourages active transportation instead of driving, which can reduce traffic congestion and improve air quality. It’s good for the environment and the community.
The scheme also applies to self-employed people, and has been expanded to include e-bikes, which are becoming increasingly popular.
The Bike to Work Scheme encourages employees to cycle to work by giving them tax-free bikes and accessories. Employees and employers can participate in the scheme, and it can save them money and improve their health and productivity. It’s also good for the environment and the community. Both employers and employees should consider the scheme to take advantage of its benefits.
