Are you considering purchase a new bike this year to improve your lifestyle, get fit and maybe save some fuel costs?. If so the cycle scheme could be right you for.
The Cycle Scheme is a government initiative aimed at promoting sustainable transportation and encouraging people to take up cycling as a healthy and cost-effective way of commuting to work. The scheme provides a tax-free benefit to employees. Allowing you to purchase a bicycle and associated safety equipment at a discounted rate. Saving up to 42% on the cost of a bike and accessories. In this article, we will explore the benefits of the Cycle Scheme and how it can improve your wellbeing and productivity.
Here’s a some financial reasons to buy a bike on cycle scheme.
- You could save between 25% to 42% on the price of a new bike and accessories depending on your tax band.
- The payment are usually spread interest free over 12-18 months.
- There’s no limit on the value of the bike (although you company may set one)
- You can sell the bike at the end of the scheme, and likely get back most or all of the price you paid. Making it cost neutral.
- Cycling is much cheaper than using the car or taking public transport
Lifestyle reasons for using your bike more
- Another advantage of the cycle scheme is that it can help to reduce the time and cost of commuting. For example, cycling can be faster than public transport in urban areas. Especially during peak hours when traffic congestion is high. It also eliminates the need for you to purchase costly train or bus tickets or pay for parking. Which can be a significant expense in some cities.
- Cycling is a low-impact aerobic exercise that has been proven to have a range of physical and mental health benefits. It helps to improve cardiovascular health, strengthen muscles and bones, reduce stress, and boost mood and cognitive function. By providing you with the means to take up cycling, the cycle scheme can help you to adopt a healthier lifestyle.
- Moreover, cycling is a sustainable mode of transportation that has a positive impact on the environment. By choosing to cycle instead of driving or taking public transport, you can reduce your carbon footprint and contribute to a cleaner, greener future. This can be particularly important for businesses that want to demonstrate their commitment to sustainability and social responsibility.
- Cycling can provide you with a sense of independence and freedom. Unlike public transport, which can be subject to delays and disruptions. Cycling allows individuals to travel at their own pace and take alternative routes if necessary. This can be particularly empowering for those who have limited access to public transport or who live in areas with poor transport links. By providing you with the means to cycle, the Cycle Scheme can help you to feel more in control of your daily commute. Which can have a positive impact on your overall wellbeing.
- There are also benefits to the business to attract and retain employees. By offering a range of benefits and incentives, such as the cycle scheme, businesses can create a positive and supportive work environment that prioritises employee wellbeing and engagement. This can lead to increased job satisfaction, lower turnover rates, and improved productivity, which can be crucial for businesses looking to remain competitive in today’s challenging and rapidly changing market. Not only that the business will make a saving of 13.8% of the employees NIC contributions.
How much will it cost to buy a bike on cycle scheme?
A £1000 bike will cost a lower rate tax paying employee £56.67 / month or 12 months. This is taken directly from salary. Before tax which results in the saving as the actual cost should have been £83.33. If you are in a higher rate tax band you save even more. Please check the exact figures with your employer and that your employer operates a cycle scheme.
The cycle scheme is a government initiative that provides a range of benefits to employees. By promoting sustainable transportation and encouraging people to take up cycling, the scheme can help to improve employee health and wellbeing, reduce carbon emissions, save money, and enhance productivity. Furthermore, by providing employees with an alternative means of transportation. The scheme can help to create a more positive and supportive work environment that can attract and retain top talent. Overall, the Cycle Scheme is an excellent initiative that businesses and employees alike can benefit from, and it is worth considering for any organisation or individual.