In a nutshell, Cyclescheme allows you to get up to £1,000 worth of bike and accessories through your employer. You then pay a monthly 'salary sacrifice' to effectively 'hire' the bike and kit, over a 12 month period.
You then have the option to purchase the bike when the scheme ends, savings tend to be between 25% to 39%.
Employers, What's in it for you?
Cyclescheme is the simple way to engage, excite and motivate your employees. Employees get a brand new commuting package, to make a brilliant tax saving (of at least 25%) and get to spread the cost too. You gain a workforce that energised by an active commute and is feeling happy and productive for the day ahead. Plus for each employee that signs up, you could save up to 13.8% in National Insurance contributions.
Typical savings for employees are a minimum of 25% for a standard rate taxpayer, assuming that Cycleschemes convenient end of hire process is applied, but the actual amount depends on the employee's personal tax band and the way the employer runs their scheme. If the employer uses external finance (i.e. borrows the money to buy the bikes from an outside agent) then savings will be approximately 5% lower.
Employers can typically save 13.8% of the total value of salary sacrifice, due to reductions in Employers' National Insurance Contributions (NICs) due.
Below are examples of how savings are made during the Hire Period for basic and higher rate taxpayers on Cyclescheme packages over a 12-month period.
This table illustrates the potential savings an employer can make by offering the scheme to its workforce.
For more info and FAQs visit www.cyclescheme.co.uk