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The ‘Cycle to work scheme’ is a government initiative which allows employees to source a bike and equipment via their workplace; enabling them to cycle to work more affordably. The employee chooses a bike from a shop, and the employer then pays for the bike, and deducts the cost from the employee’s gross (pre-tax) salary, in regular instalments, until the balance is settled.

As the salary deductions are taken from the gross pay, it means there is less National Insurance and tax to pay on the earnings, and that’s where the saving is made. The amount saved depends on the employee’s salary, but it can be up to 42% for higher-rate taxpayers. There are a number of online savings calculators available to work out the breakdown of your own personal costs and savings when using the scheme.

The rules of the cycle-to-work scheme are set by the government. By following these rules, any employer can set up and administrate their own scheme. In most cases, businesses opt to call in the services of a scheme provider to take care of the admin. There are lots of scheme providers available, Cyclescheme, Vivup, and GCI to name a few. Exclusivity agreements aside, most good bike shops will be able to take payments from multiple providers; but usually, each workplace will only work with one or two. So, it’s best to figure out which providers your workplace uses, and which scheme provider’s payments can be accepted by your local bike shop in order to understand what is available to you.

A great way to begin the process of getting a bike is to visit your local bike shop, choose a bike and get a quote for all of the items you need for your commute. You then take this quote to your employer, for them to help you set up your agreement. Usually, there’s no reason why you can’t be riding away on your new bike within a week or two of taking these initial steps.

You can use the scheme to get any adult bike including electrically assisted bikes (eBikes) in fact the government scheme was updated in 2019 with the sole purpose of making it easier for customers to buy an eBike and enjoy all of their associated benefits. Gone are the days of agreements being capped at £1000, and it’s now possible to extend the salary sacrifice window to longer than 12 months, to spread the cost even more than before.

The cycle-to-work scheme has involved over 40,000 employers across the country and has contributed to helping more than 1.6 million commuters to cycle to work. Visit your local electric bike shop for more details! If you’re curious about how riding an electric bike feels then you’re actively encouraged to go for a free test ride and experience that eBike smile.

Top 5 cycle to work employer benefits.

1. Keeping a fit and healthy workforce – Healthy colleagues are less likely to take sick days, which is obviously good news for business. Fitter and healthier staff have improved rates of productivity. Even riding in as little as once or twice a week can significantly boost a commuter’s base level of fitness.

2. Looking after your mental wellbeing – Employers want their staff to be as present and productive as possible, and in order to do this colleagues must be happy and focussed – something which cycling can help them to achieve. As with physical health, looking after employees’ mental wellbeing can reduce the number of sick/mental health days they take off. A happy workforce is more likely to be creative and contribute more positively to the business and company culture as a whole.

3. It’s better for the environment – Businesses can shout about the ways they’re encouraging more environmentally friendly practices – including cycling to work schemes. This allows them to promote their corporate social responsibility and help to boost their reputation. An increase in zero tailpipe emissions (ZTE) commutes, contributes to cleaner air quality for the whole community. Your business could be at the forefront of this effort.

4. Saving money – As seen in points 1 and 2; businesses will get more from their happy, healthy and present employees, which can help to save money on sick days and boost profits throughout the year. Businesses also save on National Insurance Contributions for employers (up to 13.8% per person that takes part). If enough colleagues participate in a more active commute, it can cut down on the number of parking spaces needed at the office; after all, bike racks are much smaller! Which can help to cut costs on creating and maintaining more spaces.

5. Cutting down on commuting times – Employees who cycle to work are less likely to be late as they can often bypass traffic issues much easier than other forms of transport. Getting more people on bikes can also help to cut congestion and traffic in the local area, something which the local community appreciate just as much as businesses.

For further information please contact info@theelectricbikeshop.co.uk