If you want to save money on your commute and promote a healthy life for yourself, then the cycle to work scheme is all you need. This program is one of the best ways for cyclists to save on the cost of bikes and cycling equipment. In addition, millions of workers use cycle to work schemes to improve their health and reduce environmental pollution. Therefore, this article will examine cycle to work schemes and how to purchase a tax-free bike.
UNDERSTANDING CYCLE TO WORK SCHEME
Cycle to work is a government program that helps employees buy bikes and other equipment tax-free. In this way, they will reduce traffic congestion, promote a healthy lifestyle and save on costs. The cycle to work scheme is available to employees whose employers have signed on to the scheme. The most essential thing about this program is that there is no limit to the number of bikes you can purchase.
HOW DOES CYCLE TO WORK SCHEME WORK?
The cycle to work scheme lets employees use their sacrificed salary to buy bikes and other equipment. In this case, the payment is deducted from the employee’s salary, reducing income tax and other contributions. In addition, the bike cost is broken down into 12-month periods, making it a cheaper and more affordable option for most people.
For one use of the cycle to work scheme, you must check if your employer is signed up for the program. After that, you can select the bike and other related equipment from any approved retailer if they are compliant. Finally, the retailer quotes you a price for the bike and any other related gear you might need.
After accomplishing all these, you can apply to the employee for a salary sacrifice arrangement. If the employer approves your application, they purchase the bike and the equipment on your behalf and deduct the cost from your salary. However, the deductions are split over 12 months, and each month they will only remove a portion based on the value of the items the employee purchased on their behalf.
WHY CHOOSE A CYCLE TO WORK SCHEME
There are many reasons why most people will prefer to cycle to work over other means of transport. Let us look at some benefits of the process:
ABILITY TO PURCHASE QUALITY BIKE
Tax-free saving is vital. Most employees save 25-39 per cent of the bike or other related equipment costs. With these savings, it becomes easy for employees to acquire high-quality bikes without straining their income.
IMPROVES GENERAL HEALTH
Cycling to work is one of the best body exercises. Therefore, it will significantly improve your health and fitness by reducing stress and boosting your mood. In addition, cycling is an affordable and reliable mode of transport. It thus plays a huge role in minimising traffic and air pollution.
Cycle to work is one of the best practices employees should embrace. The scheme also significantly enables employees to buy a high-quality tax-free bike and other related equipment. It is also a cost-saving method for those wishing to save their community and improve their general body health. So, if your employer is signed up for the cycle to work scheme, take the chance and start cycling to work today. It is always on time.