Unsupported browser

For a better experience please update your browser to its latest version.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

CYCLE TO WORK SCHEME

  • Comment
TECHNICAL & PRACTICE

Practices such as Feilden Clegg Bradley and PRP are taking advantage of a government initiative to encourage cycling to work; it is not aimed at leisure use. Discounts include bikes and accessories such as helmets, lights and locks. (You are normally responsible for insurance and maintenance. ) The government funds the scheme through a favourable tax regime. The bike is initially bought by the employer, which can reclaim the VAT. The employer could loan you the bike. If the employer wants to recoup the cost, this is often done through 'salary sacrifice'. Technically you give up the right to that amount of your salary; but then no tax or national insurance is payable. The net effect is that a standard taxpayer saves about 42 per cent compared with buying out of taxed income; a higher-rate taxpayer saves nearly 50 per cent. This is NOT hire-purchase - if it were the tax benefits would disappear.

Salary sacrifice may be over one-three years, and you can probably buy the bike at the end of the period for a small sum. PRP uses the Cycle2Work scheme run by LloydsTSB and Halfords, who take on some of the management of PRP's scheme (ie provide outsourcing).

For the Cycle to Work scheme visit www. dft. gov. uk, then click 'Sustainable Travel', then 'Cycling'.

Cycle2Work by LloydsTSB/Halfords is at www. bringme. co. uk then click 'About Bringme' then 'Cycle2Work.'

To find cycle routes try Sustrans at www. sustrans. org. uk

  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.