Are you tired of the daily commute and looking for a healthier, more sustainable way to get to work? The Cycle to Work scheme offers a fantastic opportunity to not only improve your fitness but also save money on your transportation costs. The scheme allows you to purchase a bike and accessories tax-free through your employer's salary sacrifice scheme. This means you pay less tax and National Insurance Contributions (NICs) on the cost of the bike and accessories.
How the Cycle To Work Scheme Works: A Step-by-Step Guide
The Cycles to Work scheme is incredibly straightforward. Here's a breakdown of the process:
- Choosing a Supplier: Your employer will likely have a list of approved suppliers that participate in the Cycle to Work Scheme. You can choose a bike and accessories from one of these suppliers.
- Choose Your Bike & Accessories: The first step is to select a bike and any accessories you need from an approved supplier. This could be a new or second-hand bike, a helmet, a lock or any other cycling essentials!
- Salary Sacrifice: The cost of the bike and accessories is deducted from your pre-tax salary. This means you pay less Income Tax and National Insurance Contributions (NICs) on the total amount.
- Ownership: The minimum ownership period for the Cycle to Work scheme is typically 12 months. However, some employers or providers may have slightly different terms. It's essential to check with your specific employer or provider for the exact details.
Why is the Cycle to Work Scheme and Salary Sacrifice So Beneficial?
Tax and NIC Savings
The biggest benefit of the scheme is the significant tax and NIC savings you can make. By paying for your bike and accessories through salary sacrifice, you effectively reduce your taxable income, resulting in significant savings. Depending on your tax bracket, you could save up to 40% on the cost of the bike and accessories.
- Example 1: Let's say you're a higher-rate taxpayer and want to purchase a bike worth £1,000. Without the Cycles to Work scheme, you'd pay the full £1,000. However, using the scheme, you could save up to £400 in tax and NICs. This means you'd effectively pay only £600 for the bike!
- Example 2: If you are a basic-rate taxpayer and purchase a bike worth £500, you could effectively pay as little as £300 for your new bike after tax savings.
- Note: Remember that you don't have to buy a bike. You can instead purchase just parts and accessories. Additionally, some providers and employers may have spend limits over £1000.
Improved Health and Fitness
Cycling to work is a great way to improve your health and fitness. It's a low-impact exercise that can help you burn calories, reduce stress, and improve your overall well-being.
Environmental Benefits
Cycling to work is also a great way to reduce your carbon footprint and help the environment.
Cost Savings
In addition to the tax savings, cycling to work can also help you save money on transport costs. You won't have to pay for fuel, parking, or public transport.
Who We Accept
Below is a list of suppliers that we currently accept:
Ready To Get Started?
If you are interested in using the Cycle to Work scheme, talk to your employer's HR department. You can then contact us at Tweeks Cycles so we can help you find the perfect bike and accessories to suit your needs. Our friendly and knowledgeable team is here to assist you every step of the way.
Contact us at Tweeks Cycles today to learn more about the Cycles to Work scheme and how we can help you find the perfect bike and accessories to suit your needs. Our friendly and knowledgeable team is here to assist you every step of the way.
Maybe add in what our process is. This could be copied from our website or maybe simplify so it's less text. Below is what the website currently says.
To apply for a Cycle 2 Work voucher or to use a voucher you already have, please call our sales team on 01978 660003 or send an email with the items you require from our website to [email protected], along with your full name, full address and a contact telephone. We can then use this to raise the order for you. Once you have the voucher, please send us a copy of it to the same email address and we can then redeem the voucher and ship the order to you or arrange in store collection!
Please note, that while Cycle 2 Work vouchers can be used on discounted or clearance items, such items may be subject to admin fee of 10-15% to cover the cost of processing the voucher.