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Ryecroft Glenton (RG) is encouraging employers to consider joining a Cycle to Work scheme amidst concerns around public transport due to the COVID-19 pandemic, to decrease health risks to employees.
The government-backed scheme allows commuters to pay for bikes and related accessories via salary deductions from pre-tax income, resulting in tax and national insurance savings for both employees and employers.
For example, on equipment with a total cost of £750, the commuter could save between £240 and £315 of tax and national insurance over the two-year rental period, depending on their tax bracket. The employer could save a further £207 in national insurance over the same period.
The government’s Cycle to Work scheme has now been extended to include e-bikes and with local councils committing to spending millions on dedicated cycle paths across the UK as a result of COVID-19, now could be a great time to invest in a new bike.
To take advantage, an employer must sign up to a scheme and offer it to the entire workforce. Schemes are generally provided by third parties, minimising administrative hassle for employers. Employees then rent the equipment from the scheme operator over a 24-month period at the end of which they can make a final payment to purchase the bike for a heavily discounted price if they wish.
Claire Charlton, partner at Ryecroft Glenton, said: “Although it’s been around for a few years, there is renewed interest in the government backed “Cycle to Work” scheme as a result of the recent pandemic. Avoiding public transport has become more important to the public from a hygiene point of view, but also because of the reductions in services.
“Cycling is a great way to live a healthy lifestyle too because, although at least 50 percent of the bike’s use must be for commuting, this leaves plenty of scope for leisure riding and getting fit in the process!”
If you’re an interested employer, to find out more about joining a Cycle to Work scheme, search ‘Cycle to work scheme’.