Cycle2Work-e1382959217104

Cycle to Work Scheme

The most cost effective entry to cycling

What is Cycle to Work?

The Cycle To Work scheme is a UK Government initiative to encourage more of us to… you guessed it, cycle to work.  The main aims are to improve employee fitness and wellbeing, along with reducing environmental pollution.

Why choose Cycle to Work?

It’s a very cost effective way for you to buy a shiny new bike.  The scheme is a tax-free employee incentive that operates using a salary sacrifice model.

How does it work?

Your employer effectively leases the bike to you, via a salary sacrifice model, meaning payments are subtracted from your gross salary, pre-tax & NI, therefore the impact on your net salary is reduced.  For example…

Total cost of bicycle & accessories £1,000
Income Tax saving over hire period £200
Employee NI saving over hire period £120
Final cost of bike & accessories £680
Total saving £320
Gross salary sacrifice, based on 12 month hire period £83.33
Net salary sacrifice, based on 12 month hire period £56.67
Percentage saving over RRP 32%

In simple terms, although you’ll be paying £83.33 from your gross salary, you’re effectively only paying £56.67 from your net salary, saving you:

(£83.33 – £56.67) x 12 = £319.92 saved!

Although it’s your employer leasing the bike to you, the schemes are administered by a third party, who liaises between your employer and the bike shop, to take care of paperwork and funding transfers.

There are a number of third party administrators, but the vast majority of transactions are completed by a few key companies. Griff’s process applications from the following key providers:

Contact your HR rep to find out if your employer participates in the scheme.

196b Duke's Ride, Crowthorne, Berkshire, RG45 6DS
E: info@griffscyclelab.co.uk | T: 01344 762 933