We’ve partnered with member organisation Cycles UK to give all bira members a special discount on bikes under the Cycle to Work Scheme.
Just some of the benefits of the Cycle to Work Scheme:
- It’s the healthy option for travelling to and from work
- Cycling helps reduce environmental pollution
- Chance to purchase a great bike and safety equipment for a great price
- Tax exemption initiative
- As a bira member you’ll receive at least 30% off the cost of a bike and safety equipment
Launched as part of the 1999 Finance Act, the Cycle to Work Scheme was introduced to promote healthier journeys to work and to reduce pollution. The Act also saw the introduction of an annual tax exemption, which allowed employers to hire out cycles and the cyclists’ safety equipment to employees as a tax-free benefit.
How the scheme works
The employer buys a bicycle and safety equipment, then enters into a hire agreement with the employee to lease the cycle for a period of 12 or 18 months. Over this time the employee actually pays back the value of the cycle and safety equipment through the PAYE system, and this is where the savings are made for both parties.
The tax exemption allows the employer to deduct the monthly hire payments for the cycle and safety equipment from the gross salary of the employee through a salary sacrifice scheme. The employee saves money as they pay less Income Tax and National Insurance Contributions (NICs), due to them paying for the hire of the cycle and safety equipment through the salary sacrifice scheme.
The employer will save on Secondary Class 1 NICs due to paying lower gross salaries to employees.
Once the agreement is up, the employee can choose to purchase the cycle and safety equipment at a ‘fair market value’ from the employer.bira members can login to see additional member-only content.