Bike For Work Scheme – What You Need To Know

One of the increasingly popular benefits for employees is the bike for work scheme. The secret to its success is that it helps employees stay active, cuts their travel costs, and helps the environment. If you want your team to join the club and consider cycling to work, there are a few things you should know.

The bike to work scheme is a Government initiative that encourages businesses to loan bikes and appropriate safety equipment to their employees as tax-free benefits. There are no restrictions on the type of businesses that are allowed to take part in the scheme. However, employees must be registered to pay tax through PAYE. This discounts self-employed individuals and those on National Minimum Wage. The reason for this is that the payments made by the employee to cover the sale price of the cycle equipment are taken directly from their gross wages. This type of salary sacrifice scheme saves the employee money in two ways. Team members make Tax and National Insurance savings, and the loan from the employer is interest-free and repayment terms are generally set between the employer and employee. Employees wishing to make this lifestyle change do not have to use the bike for the whole of their work journey. It can be used to replace car travel to or from a train station or to follow on from the school run. While there is no limit to the amount that can be loaned to an employee under the scheme, FCA regulations require separate authorisation if the order is over £1000. Employers should check the Office of Fair Trading and Financial Conduct Authority when taking part in such schemes.

Putting your benefits packages together with Team Rewards saves you from doing all the leg work yourself. We ensure that our service is compliant with current guidelines, so you have ultimate peace of mind. Find out more about our bike for work scheme at or email your questions to

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