Understanding How To Participate In The Cycle To Work Scheme

A component of the Green Transport Plan put into practice by the Government

, the cycle to work scheme seeks to popularise the use of bicycles regularly. If you own and operate a business and employ individuals, participating in this scheme may prove to be advantageous for you and your employees. How do you participate in this scheme? Here are the steps involved in the process.

Choose a provider for participation. The first thing you need to do is check out the providers offering the tax free bicycles and cycling equipment as per the HMRC cycle to work scheme. Choose a provider that offers an extensive range of bicycles and safety equipment at reasonable cost. It is necessary to enquire about the way the provider works and the services they offer to ensure no hassles later.

Sign up with the provider. After you have determined which provider is suitable, it is necessary to enter into an agreement with them. Registering with the provider gives you access to an online portal which helps you manage the process with minimal time and effort. You need to ensure that this benefit in kind is available for every employee working for your organisation.

Work out the salary sacrifice agreement. The scheme works on a salary sacrifice arrangement between the employer and the employee. You pay for the bicycle and the safety equipment and rent it to your employee. A percentage of the employees salary is deducted on a regular basis throughout the hire period to compensate your expenditure. It is necessary to work out the details of this arrangement beforehand.

Let your employees decide which bicycle and safety gear they need. Your employees could visit any of the bike shops within the scheme and choose the bicycle and cycling equipment they think would be suitable for their commute between home and office. You may set a limit within which they would have to choose these things. Each employee fills up the details of the bicycle package online and sends it to you for approval.

Approve the bicycle package. You or the HR department of your office are responsible for approving the bicycle package an employee chooses. If the price of the bicycle and the safety gear is within the limit you have set, approval would not be a problem. The bicycle provider arranges for the delivery of the bicycle package to the employees home after the employer pays for this.

The question every employer has is how does participation in the scheme offer monetary advantages? The bike to work calculator would be able to help you understand the exact benefit you may obtain from this. The bicycle and cycling equipment you buy are exempt from taxes. Moreover, you also save from the National Insurance contribution. Participating in this scheme is also part of the employee retention policy.

If contribution to the preservation of the environment is a concern for you, participation in the cycle to work scheme is a good idea. It makes sure that your employees use the green way to travel bicycles.

by: Daniel Smith

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