The Cycle to Work Scheme

 
OnBike is an approved Cyclescheme.co.uk partner along with MANY other schemes

Electric bikes cost slightly more than conventional bikes, but to assist PAYE employees, the Government's Green Action Plan introduced a 'Cycle to Work' scheme some years ago that provides a tax efficient means of purchasing cycles of any description with savings of up to 50% over retail prices, created on economies on VAT, Income Tax and National Insurance.

 How it works... 

» Your employer signs up for the chosen scheme

» You then choose a bike from OnBike

» The bike is then bought by your employer who reclaims the VAT*

» You then take delivery for your exclusive use - provided you use it for qualifying journeys, I.E. commuting to work.

» The VAT free price is then deducted from your salary by equal installments over a period of time (typically 12 or 18 months), but as you don't pay tax or NI on the income you forego, this will give you further savings.

» After the period of salary sacrifice, the employer may give you the option to purchase the bike at a 'fair market price', though this price depends on the period you have had the cycle hired to you and its condition.

Everybody wins and it's time to let your employer know!

 *Some employers, particulary NHS, education and charities are notVAT registered and therefore there is no VAT saving.

Want to find out more?

Visit www.cyclescheme.co.uk or your chosen scheme providers website!

Click HERE to download the Department for Transport's 'Cycle to Work Scheme implementation guidance'