Hey there, conscientious commuters!
Have you ever considered swapping your car keys for a bike helmet on your daily commute? The Cycle to Work Scheme is a fabulous way that could make this switch beneficial not only for your health but also for your pocket! Let's explore how you can make the most of this scheme without any tax hassles.
A Green Start to Your Morning
Imagine starting your day with a fresh morning cycle ride to your workplace. Through the Cycle to Work Scheme, you can be equipped with a bicycle and necessary safety gear, like a helmet, to make this transition smooth and safe, and guess what? You won't incur any tax charges on using these!
A Flexible Plan with Noteworthy Benefits
Here's how it works: Many employees opt to slightly reduce their salary for a while to fund the provision of the cycle. This approach has a sweet ending - after one or two years, you have the option to purchase the bike at its second-hand value. It's a wonderful way to own a bike without feeling the pinch in your wallet!
There are also many tax benefits to, such as:
- The company will save £138 of Employers NI for every £1,000 spent on the bicycle
- The employee will also save tax and NI on the bike and so reduce its purchase price by over 40%
Keeping it Fair and Square
To ensure everyone benefits equally from this scheme, there are a few guidelines to keep in mind:
- Open to All: The scheme should be accessible to all employees, promoting inclusivity.
- Purpose of Use: HMRC mandates that the bike should primarily be used for commuting between home and work or for work-related travels, making up 50% or more of its use. It's not intended for leisure use or to be handed over to a family member.
- Purchase Option: If you decide to buy the bike later, a reasonable second-hand value should be determined for the purchase.
- Ownership Understanding: During the hiring period, it's essential to remember that the bike is not your property and hence, cannot be sold.
In conclusion, the Cycle to Work Scheme presents an excellent opportunity to embrace a healthier lifestyle while enjoying financial benefits. Remember, we're here to guide you if you have any questions or need advice on how to integrate this scheme into your lifestyle seamlessly.
Feel free to reach out for a detailed walkthrough and personalised assistance!