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Cycle to work schemes are a powerful tool for boosting employee well-being as well as an employer’s bottom line, says Adrian Warren, senior product director, BHN’s Cyclescheme at Blackhawk, ahead of Cycle to Work Day on 1 August
I n today’s economic climate, with the lasting effects of the cost-of-living crisis continuing to squeeze budgets and employee well-being becoming a top priority, businesses are constantly seeking innovative ways to support their workforces. One often overlooked solution with significant benefits for both employees and employers is the cycle to work scheme. What is a cycle to work scheme? The first question on many people’s lips is, what is a cycle to work scheme? It’s a salary sacrifice benefit that gives employees savings on a bike and other related cycling equipment. The scheme removes the traditional barriers of borrowing, meaning employees can loan the money to purchase
“Rather than paying tax on money earned
their bike from their employer, without the need for lengthy credit checks. The term salary sacrifice scheme in this context means that rather than paying tax on money earned and then buying a bike, employers can lower the amount of income that employees are taxed on by giving up part of their salary before paying tax. How does a scheme work? With some providers, cycle to work schemes are free for both employees and employers to join and are available to businesses of any size, from start-ups to huge enterprises. Most of the time the only qualifying factor is that employees must be paid via pay as you earn. Once the employer has signed up and
and then buying a bike, employers can lower the amount of income that employees are taxed on by giving up part of their salary before paying tax”
| Professional in Payroll, Pensions and Reward | July - August 2024 | Issue 102 44
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