Getting Started With The Cycle To Work Scheme

Participating in the cycle to work scheme may prove advantageous for the employer and the employees

. Along with the financial benefits available for the company and the employees, it ensures reduction of pollution and preservation of the environment, health and fitness of the employees, and reduction in traffic congestion. Before you participate in the HMRC cycle to work scheme, here are a few details regarding this.

Which employers are eligible for participating in this scheme? This scheme is part of the broader Green Transport initiative available for all employers across different sectors including the public, private and voluntary ones. Whether you have 5 or 5000 employees, you may participate in this scheme and avail the tax advantages. However, you need to make this facility available for all your employees.

What can the employees get when their employer participates in the scheme? The equipment available under this scheme includes bikes and cycling safety equipment. The definition of cycle is available in the scheme guidelines. However, there is no such definition available for cyclist safety gear. In general, this includes cycling helmets, lights, bells, mirrors, mudguards, and locks and chains.

How much should the value of the equipment be? There is no limit to the value of the equipment an employer provides for the employees. An employer may also choose to loan more than one bike to an employee in certain circumstances. However, as per the Office of Fair Trading, the schemes offering equipment worth 1,000 are under the coverage of the group consumer credit license.

On which conditions is the tax exemption available? The tax exemption is available only if certain conditions are fulfilled.

If the bicycle and cycling equipment are available for all employees in the workforce and not for specific individuals only

If the ownership of the bicycle and the cycling gear is not transferred to the employee during the period in which it is loaned

If the bicycle and the cycling equipment are used mainly (more than 50% of the total journeys) for qualifying, i.e., work-related, journeys

Fulfilling the aforementioned conditions makes it possible to get the bike tax advantage.

How does the salary sacrifice arrangement work? An employer may buy the bicycle and the cycling equipment and loan it to the employee during the specified period. However, if they want to recover part of their expenditure, they may make this tax-exempt benefit available to employees with a salary sacrifice arrangement. As per this, the employee accepts a lower gross salary in lieu of the benefit in kind.

The first task for an employer is to find out the details of participating in the scheme. Only when you are aware of the advantages would you consider participating in the cycle to work scheme. The next task is to find a partner who would provide the bicycles and cycling equipment for the employees. The bike supplier needs to have participating bike shops in different locations to ensure that procuring the bike and cycling equipment is easy.

by: Daniel Smith

POST COMMENT

Five Reasons To Become An Apprentice Fetch Cash Comfortably The Benefits Of The Lean-to Conservatory Speldhurst - A Prominent Village Of Kent What To Do If You Are In Need Of Conservatory Repairs Know Fico Scores, Improve Your Fico Save Money Public Sector Network Inches Towards Universal Acceptance A Mixed Martial Art Athlete Should Have Sufficient Knowledge Newspaper Lost Found Ads: Amalgamate Owner With His Misplaced Asset The Benefits Of Opting Biomass Boilers The Stages Concerning The Best Way To Acquire Her Again Tips On Enhancing The Vle Experience A Brief Insight Into Georgian Furniture