Ride to Work

The Government's ride-to-work scheme has been around for a few years, but until recently it has been too bureaucratic for most employers to consider. Essentially it applows the employer to buy a bicycle and hire it back to the employee, free of tax and National Insurance. The main use (at least 50%) of the bike has to be for commuting or for work-related use. The maximum spend generally allowed per employee is £1000.

So the employer has to dole out cash at the start to buy the bike, but the payments from the employee are taken off their gross salary, reducing the tax/NI burden.

Several schemes now exist to make it easier for the employer to know what to do and to make the paperwork easier. Evans Cycles has a good online section, with an online calculator. They also have an introduction pack and application form, plus an employee's guide. Further Resources covering contracts and order forms are also available.

Wiggle has just announced their scheme:

50% off bikes through Wiggle Cycle 2 Work!
Due to the incredible demand from you, our regular and loyal customers, we are pleased to announce our very own Cycle 2 Work scheme. By taking advantage of tax incentives available to encourage healthier lifestyles and to help reduce environmental pollution employees can make huge savings on bikes and safety accessories - often up to 50%. Your employer will save money too! It's incredibly easy to get involved.

Streetlife at 54 West End Street, Norwich (Tel: 626660) support the Ride-To-Work scheme.


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