Cycle-to-Work Scheme: The Wheel Deal?
Later this year, the government is expected to publish a white paper encouraging employers to take more responsibility for the health of their employees. Among the many incentives which can be offered is the Cycle-to-Work scheme.
The scheme is an annual tax exemption which allows employers to loans cycles and related safety equipment to employees as a tax-free benefit. Many organisations are missing the opportunity to derive employee health benefits from such schemes, instead tending only to promote them as ways to save when buying a bike. However, you as an employer could directly affect the transport habits of your staff, while also encouraging an active lifestyle.
The Cycle-to-Work scheme can include bicycles, tricycles, and electrically assisted pedal cycles; And it’s not limited to just the wheels and frame, but can also include helmets, bells, lights, mirrors, locks and chains, pumps, and much more. If an employee needs a cycle at either end of a train journey between their home and place of work, it is also possible to loan them two cycles.
While there is no limit on the total value of the equipment including the cycle, the Office of Fair Trading has advised that the group consumer credit licence will cover schemes up to the a value of £1,000.
Could your business benefit by promoting Cycle-to-Work?
Doing so could deliver great benefits in terms of reduced sick days and fitter, more alert employees, so maybe it’s time your business geared up and took advantage of the scheme.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
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