CYCLE TO WORK: A SMARTER WAY TO COMMUTE.
At Yélo we’ve been a big supporter of the Cycle to Work scheme and have been using it to purchase our own staff bikes.
Cycling to work is a fantastic way to improve your health, save money, and reduce your carbon footprint. But what is the scheme and how does it work?
WHAT IS THE CYCLE TO WORK SCHEME?
The Cycle to Work scheme is a government initiative that allows you to purchase a new bike (including e-bikes) through your employer, saving you money on both the initial cost and ongoing tax and National Insurance contributions.
At Yélo we offer the following schemes to purchase your new bike; GoGeta, Green Commute Initiative and Cycle Scheme.
What can I buy?
You can buy any bike, components and clothing and the cap on the value will be determined by your employer. You don’t even have to buy a new bike. At Yélo we have a range of superb high quality preloved bikes that qualify for the Cycle to Work Scheme, meaning you save even more money.
How does it work?
- Employer Registration: Your workplace registers with a scheme provider.
- Bike Selection: You choose the bike you want from the provider’s range.
- Employer Payment: Your employer purchases the bike.
- Employee Repayment: You repay your employer through monthly salary deductions.
Tax Benefits
The most attractive part of the scheme for employees lies in its tax-efficient nature. By making monthly payments through salary sacrifice, you’ll pay less Income Tax and National Insurance on your overall salary. This can save you up to 32% on the total cost of the bike, depending on your tax bracket.
At the end of the scheme, you’ll typically need to make a small final payment to fully own the bike. This is a nominal fee, often around 7% of the original cost.
If you’re considering cycling to work, the Cycle to Work scheme is a fantastic way to make it even more affordable and enjoyable.
So, what are you waiting for? Start your cycling journey today by getting in touch with our team.
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