| Tax free cycles | | | | helmets and lights, as well as clothing, bags, tools and |
| The UK's cycle to work scheme is a government | | | | spare parts. |
| initiative that enables all UK employers to offer tax | | | | You may spend up to £1000 in total, including |
| free cycles and cycling equipment to their employees. | | | | equipment. This price may cover more than one bike, |
| As an employee you can look to save up to 50% on | | | | which is also acceptable. For example you may need |
| £1000 worth of cycles and cycling equipment. | | | | to cycle form home to your train station and then |
| The scheme was implemented in 1999 as part of the | | | | from the other end of the line to work. |
| Finance Act, and is aimed at promoting healthier | | | | How does the cycle scheme work? |
| travel options for commuters and reducing pollution. | | | | The cycle to work scheme offers discounts by |
| So far thousands of employees have take advantage | | | | removing the tax charge that would otherwise apply. |
| of these amazing savings, why not get involved too? | | | | For example, if you buy a bike outside of the |
| Who is eligible for the cycle to work scheme? | | | | scheme you will have already paid income tax on |
| Employers of all sizes across the public, private and | | | | your money, and also have to pay VAT on the bike |
| voluntary sectors can implement a tax exempt loan | | | | itself. The scheme removes these taxes by offering |
| scheme for their employees. The employees wishing | | | | the bike VAT free and letting you pay direct from |
| to participate should be paid through the PAYE | | | | your salary before income tax. |
| system. The scheme is not available to the | | | | - Ownership of the equipment is not transferred to |
| self-employed or employees on the National Minimum | | | | the employee during the loan period |
| Wage. | | | | - Employees use the equipment mainly for qualifying |
| What kind of bike can I buy, what about equipment? | | | | journeys; i.e. for journeys made between the |
| All types of bicycle are offered under the scheme. | | | | employees home and workplace, or part of those |
| The definition of a bicycle is any cycle or tricycle | | | | journeys (for example, to the station), or for |
| having two or more wheels that is not classified as a | | | | journeys between one workplace and another |
| motor vehicle, although electrically assisted cycles are | | | | - The Cycle to Work scheme is made available |
| also covered by this. | | | | generally to employees of the employer concerned |
| You can also spend your money on cycling | | | | and not confined to directors or offered to them on |
| equipment, including all safety equipment such as | | | | more favourable terms. |