Good news for potential cyclists

An Antidote contributor saw a notice in Scott’s Cycle Shop last week, about the Cycle to Work scheme, building on a government tax break. A young man was happily taking possession of a superb new cycle under the scheme, which Birmingham University – his employer – has joined.

 Cyclescheme is the UK’s number one provider of tax-free bikes for work through independent bike shops.

Its frequently asked questions should cover most queries on the general running of the scheme and its partner finder shows your nearest participating shops.

The scheme is available to UK taxpayers who pay PAYE; the self-employed cannot take part in the scheme.

This is the way it works, according to the official Department for Transport info 

  • Your employer signs up for the scheme 
  • You then choose a bike from an approved supplier
  • The bike is then bought by your employer who reclaims the VAT
  • You then take delivery of the bike 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 instalments over a period of time (typically 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 depends on the period you have had the cycle loaned to you.  

This ‘fair market price’ is usually 5% of the original package price. So, after a 12 or 18 month ‘loan’ for a bike package costing £1000, that would mean that the employee takes full ownership for just £50. 

Click here to see a short video about Cyclescheme

More information in http://www.bikeforall.net/content/cycle_to_work_scheme.php 

Its slogan: Get a bike, protect your savings and get fit.

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