subject: Availing The Benefits Of The Cycle To Work Scheme [print this page] If you are looking for an easier, and cheaper, means of transport for commuting between work and home, the Governments Green Transport initiative may be of use to you. The scheme for cycle to work Northern Ireland offers you the opportunity to get a bicycle and cycling equipment for use.
The scheme operates through your employer; any employer (belonging to the public, private or voluntary sectors), with any number of employees, is eligible to participate in this scheme. If your employer participates in this scheme, you may be able to get a bicycle and cycling gear as an employee.
Before you get a bicycle as per this scheme, here is a brief overview of how it works.
Step 1: The employer registers for this scheme.
Step 2: The scheme partner sets up a microsite for the company.
Step 3: The employer informs the employees about the scheme details.
Step 4: The employee visits the participating cycle shop nearby, chooses the equipment and gets a quote.
Step 5: The employee submits the quote to the microsite.
Step 6: The employer approves this quote and pays for the equipment.
Step 7: The employee gets a voucher, which he/she can redeem at the bike shop to get the equipment.
The salary sacrifice arrangement starts once the employee gets the bicycle and the equipment from this scheme. As per this arrangement, the employees pay for the use of the bicycle and the safety equipment from their gross salary. It is necessary to work out the details of this arrangement before you get a bicycle from this scheme.
Participating in the cycle 2 work scheme may save money for both the employer and employee. Here are a few points that would help you understand the way this works.
For an employer, the savings are attainable in two ways. Reducing the gross salary of an employee and replacing it with non-cash benefit implies reduction in the National Insurance Contributions. Considering the cost of bicycles and cycling equipment as capital expenditure also means availability of capital allowances for the employer.
For an employee, the savings are available in a particular way. The reduction in the gross salary of the employee implies reduction in the tax as well as National Insurance Contributions. Moreover, the employee also gets the necessary physical exercise when he/she commutes between work and home on a bicycle.
If you are an employer, and think that this scheme may be advantageous for your company as well as employees, your first task is to find a bicycle to work scheme partner. Enquire about the processes and availability, compare the costs and determine which cycle to work scheme partner would be appropriate for your company.
If you are an employee, and think that this scheme may be advantageous for you, your first task is to enquire whether your employer participates in this scheme. If yes, you may be able to get a bicycle and cycling equipment from this scheme. If not, you may try to talk to your employer regarding participation in this scheme.
