Cycle To Work Scheme

The Cycle to Work Scheme is a Government green transport initiative which allows employers to offer employees the option of hiring cycles and cycle safety equipment over a 12 or 18 month period without having to pay Tax or National Insurance on the payments. The scheme was introduced to help promote healthier journeys to work and reduce environmental pollution. At the end of the hire period, the employer may choose to dispose of the cycle  at a fair market value (normally 5% of the original package value) and may offer to sell the equipment to the person who has had the equipment on hire. Employees can, therefore, obtain a cycle and equipment at up to 40% savings on the normal retail price. In order to benefit from the Tax and National Insurance savings the bicycle must be used mainly for  journeys to and from work, between work sites or partial journeys such as getting to/from train stations/bus stops.

Full details of the benefits to employers and employees and the conditions of the Cycle to Work scheme can be found on the Department for Transport website at http://www.dft.gov.uk/pgr/sustainable/cycling/cycletoworkschemeimplementat5732?page=1#a1000"