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<p dir="ltr">Cycle to Work (Salary Sacrifice) is a simple scheme whereby an employer can provide staff with an electric bike &lsquo;tax free&rsquo; at approximately half the retail price and at no cost to the company. This can enable employees to save up to 48% of the cost of a bike...amazing and really simple.</p>
<p dir="ltr">The company must&nbsp; set up a &lsquo;cycle to work&rsquo; scheme, purchases the chosen bike and &lsquo;loans it&lsquo; to the member of staff over a fixed period. For the company this means the HR department sets up a simple salary control system. The member of staff then commits to a small monthly reduction in gross salary thereby fully mitigating the cost to the employer.</p>
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<p dir="ltr" role="presentation">The employee obtains the bike of their choice &lsquo;tax and vat free&rsquo;, by saving on the PAYE and NI contributions.</p>
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<p dir="ltr" role="presentation">In addition the company saves the national insurance (12 .8 %) on the reduced salary whilst providing its staff with an excellent benefit that provides an efficient and environmentally friendly form of transport.</p>
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<p dir="ltr" role="presentation">The company can treat the cost as capital expenditure and claim capital allowance in the normal manner.</p>
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<p dir="ltr" role="presentation">The employee will also improve their physical fitness and reap numerous health benefits. They will also avoid parking and 'Clean Air Zone' (CAZ) charges which have been established in cities such as Bath and Bristol.&nbsp;</p>
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<p dir="ltr"><strong>Estimated Impact</strong></p>
<p dir="ltr">Commuting with car daily (under 1 hour each day) equals to 3.2 tonnes of CO2 per person per year so any changes to reduce commuting especially by non electric cars can have a significant carbon saving annualy accross your workforce.</p>
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