By Laura Black
Through the right perks, an employer can vastly improve productivity, morale, and staff retention. Anything that makes employees healthier and happier, and that costs very little to implement, is likely to qualify. Given its numerous benefits on employee health and wellbeing, both physical and mental, itโs no surprise that government-backed cycle-to-work schemes are growing in popularity.
What is a cycle-to-work scheme?
The government has a natural interest in encouraging people to cycle. This form of exercise reduces congestion and improves health, which in turn lessens the long-term burden on the health service.
Partly for this reason, the 1999 Finance Act created a tax exemption for employers willing to invest in cycling equipment. Employees wishing to cycle to work can obtain the required vehicle and the accompanying equipment from their employer, rather than buying it directly. The result? A significantly lowered cost of entry into the hobby.
Qualifying criteria and salary sacrifice
In order to qualify for this scheme, your business will need to meet a few criteria.
Firstly, it will need to be available to everyone who works for your business. Second, you arenโt allowed to sell the bikes to your employees โ they must remain property of the business. Finally, the bikes must be used, at least in part, for actually cycling to and from work, and for other business uses.
The bicycles are often offered at no up-front cost. Theyโre ultimately paid for via a long-term โsalary sacrificeโ. This means that wages are docked until the cost of the bike is covered. The repayment term can be anything from twelve to eighteen months.
Continuing the arrangement
Salary sacrifice doesnโt necessarily mean owning the bike outright โ though the employee will often have the option to do so at the end of the period. Loans and other arrangements might be arrived at, provided that the employee in question agrees to them.
Of course, there are other ways to incentivise this form of travel. Providing a secure place to store bikes, and to shower and change on your businessโs premises, can be enormously valuable. A few sheets of plywood and some modest carpentry skills might be enough to fashion a cost-effective outdoor bike shed.
Benefits
Itโs worth reflecting on why this scheme might be attractive for both employee and employer. The former will get a cheap bike, and access to an enjoyable hobby. Theyโll enjoy superior fitness, and theyโll save money on fuel and other commuting costs. Employers might benefit from healthier, and more productive employees, as well as a much less crowded car park.
LATEST CYCLING EUROPE POSTS:
- Visiting Europeโs Best Cycling Towns And What To Take With You
- Wheeling Towards Sustainability: Exploring The World’s Top Bicycle-Friendly Cities
- The Cycle Touring Festival 2023: Next weekend!
- 20 Is Indeed Plenty… Although Some (Men) Might Take Persuading
- The Cycling Europe Podcast: Episode 075 – Craig Fee – Cycling Into The Unknown
Subscribe to the Cycling Europe YouTube Channel
Since 2009, CyclingEurope.org has established itself as a valued, FREE cycle touring resource. There’s now even a podcast, The Cycling Europe Podcast. If you enjoy the website and the podcast, please consider supporting the work of CyclingEurope.org with a donation. More information here.
Catch up with The Cycling Europe Podcast:
Categories: Cycling
