Cycle-to-work scheme for employers – get your brain in gearPosted 2022 by Jane L
Employees are looking to their employers to help them save money and the cycle to work (C2S scheme can be an easy solution.
The amount of work involved by employers is more like freewheeling downhill than an uphill struggle!
Financial benefits for employers
The employee makes a salary sacrifice to pay for the bike, which lowers their gross taxable salary. As a consequence, the employer will be paying lower NICs on this. Not by a huge amount, but it can work out at up to 15.05% on the cost of the cycling equipment which on a £1000 spend equates to £150.
Multiply that across your participating employees and it soon becomes worth the time administering the scheme.
You could also save money by providing fewer car parking spaces for your cycling colleagues or gain goodwill by offering them up to employees who still choose to drive.
It’s one more perk that could encourage your employees to stay with you.
- Use of a bike (even an e-bike) instead of a car or public transport reduces fossil fuels
- Smaller environmental impact in the manufacture of a bike compared to other forms of transport
- Reducing pollution and congestion.
Healthy living benefits:
- Improving personal health, fitness and mental health of your employees leads to a more productive workforce.
What type of bikes can we choose from?
Anything that is classed as a bike is ok – mountain, road, hybrid, folding, e-bikes and specially adapted cycles for those with mobility issues. But not e-scooters.
How much work is involved setting up the scheme for employers?
It’s not too much, depending on the supplier you choose (and there are many to choose from). In some cases, you can buy the bikes outright and rent them over a period of time to your employees (at least 3 months, and often a year), although if you do this the maximum price of the bike cannot exceed £1,000 unless you are authorised by the FCA for Consumer Hire. Alternatively you can use a third party who will rent them to your employees on your behalf.
Who can we recommend for C2W scheme?
There are many companies who offer the scheme, but if you’re looking for recommendations, we’re big fans of the Green Commute Initiative who offer an interesting way for employers to sign up for the cycle to work scheme. CGI are also not restricted by the normal £1000 limit of many cycle to work schemes, which makes them popular with employees with a need for speed. Find out how they work.
Can all employers offer the cycle to work scheme?
- You have to offer the scheme to all employees. If your company only employs one person as a director, that’s ok.
- an individual’s employee’s salary sacrifice takes them below the minimum wage, they will not be able to use the cycle to work scheme
- you’re self employed and do not receive your income as PAYE, you cannot use the scheme.
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Watch our video about the cycle to work scheme