The Covid_19 pandemic has led to many people taking up cycling not only as a hobby but also as a lifestyle choice to help adhere to social distancing by reducing use of public transport.
A government Cycle to Work scheme is available which enables employers to help their employees save between 25% and 39% on the cost of a new cycle or an electric bike.
As an employer you would have to sign up for one of the official ‘Cycle to Work’ schemes which then allows you to buy a bike for your employee to ride to work and you ‘hire’ it to them through salary sacrifice (which is where you save by not paying tax and National Insurance on the monthly fees). At the end of the ‘hire’ period, the employee is entitled to buy the bike from you at a fair market value.
There is also the option of employees providing a loan to the employee. Loan schemes would also be on an interest-free basis and may be subject to regulation by the FCA.
For more information on the ‘Cycle to Work’ scheme please download the official Government guidance HERE.
