The newly updated government Bike2Work scheme encourages more employees to commute by bike and includes even better benefits for both employees and employers.
The cycle to work scheme was updated last month and includes a variety of changes that aim to benefit the workforce. The new rules will be fully in place towards the end of this month.
The main changes will include revisions to cost, kit available, flexibility and the introduction of E-bikes.
Whereas previously employers could only help employees to buy bikes and cycling equipment of up to £1000 in value, they can now cap the scheme at a value of their choice.
Therefore, this means that equipment of up to any amount can be covered by the scheme.
By having the freedom to choose a price limit for equipment, employers are given more flexibility in what they can offer.This gives a wider range of structures and repayment schemes that can be set out for individuals.
For employees, there is now a broader selection of accessories within the scheme.
New to the scheme, employees can now buy e-bikes.
The aim of this is to make it easier and for people to incorporate cycling into part of their commute, and make this journey greener.
What is the new process?
- Employees choose their bike and/or cycling equipment.
- Employee and employer set up pre-tax salary sacrifice agreement.
- Employer provides funds for purchase.
- Employee hires bike for duration of payback period.
To put these benefits into perspective for employees, based on £2000 of cycling equipment, they would be saving £420 on tax under the old rules.
However, under the new scheme, employee tax savings (at a maximum rate of 42%) can reach £840. This is a savings increase of £420.
But the new scheme doesn’t just benefit the employee.
On average, employees who cycle to work will take 2.1 fewer sick days per year than those who don’t commute by bike. As a result, employers will receive a happier, healthier and more productive workforce.
To find out more about the scheme, call 0330 088 4765, email firstname.lastname@example.org or visit www.bike2workscheme.co.uk