The UK’s Cycle to Work Scheme is a win-win for employees and employers, letting you save on bike and accessory costs through salary sacrifice. Here’s how it works:
How Does It Work?
Employers provide bikes, and employees agree to a salary reduction to cover the costs. This reduces taxable income, cutting down tax and National Insurance payments! 💸
Example: Employee vs. Employer
Let’s say you earn £25,000 annually and hire a bike for £1,500. Before joining the scheme, you’d pay £2,486 in income tax and £1,491.60 in NICs. After enrolling, your salary drops to £23,500. This reduces your tax to £2,186 and NICs to £1,311.60 – saving you a sweet £480 overall! For employers, there’s an additional saving of £247 on their National Insurance contributions too. 🏅💼
What’s Included?
Bikes, helmets, lights, child safety seats – a whole range of gear is covered! 🚦🔧
Key Benefits for Employers:
- Tax savings up to 13.8% per employee 🚪.
- No admin fees for running the scheme – simple and straightforward!
What Happens if You Leave?
If an employee quits early, they’ll need to repay the remaining balance, but the savings are still worth it! 🚨
In Conclusion:
This scheme is perfect for saving money and staying fit! Whether you’re commuting to work or just enjoying weekend rides, the savings add up fast. For businesses, it’s a great perk that also cuts down on costs. Ready to pedal your way to more savings? 🤑🌍
