4 August 2022 – Cycle to Work Day
03 August 2022
4 August 2022 is Cycle to Work Day and is the perfect opportunity to review if implementing a scheme in your workplace would be beneficial.
Not only can cycling to work be a great way to keep active and get fit, it can also reduce fuel use and reliance on cars. With current petrol prices, this can only be a good thing, but this also help on the road to net zero for many companies and the country as a whole.
Additionally, eligible Cycle to Work Schemes can be paid for through salary sacrifice and benefit from tax exemptions. This means employees can pay less tax and National Insurance (NI) contributions and employers will pay less NI contributions and apprenticeship levy (where applicable).
Situations that bring such a big benefit to both employees and employers are very rare and well worth the consideration for businesses who can implement them. Cycles and safety equipment are exempt from tax on income if the following conditions are met:
- the cycles or equipment are available generally to all employees (the offer of cycles or equipment must be open to all employees if they wish to take it)
- the employees must use the cycle or equipment mainly for qualifying journeys, other uses do not disqualify the exemption as long as it is not the main use of the cycle.
The Department for Transport has published some Cycle to work scheme implementation guidance for employers. This guidance covers the benefits, eligibility and salary sacrifice impacts of such a scheme.
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