Bike To Work Schemes – The Complete Guide To This Popular Employee Benefit

There is no denying that one of the increasingly popular employee benefits is the bike to work schemes. The key to its success is the fact that it helps workers remain active, decreases the amount of money they spend on travel, and supports the environment. Keeping that in mind, read on for our guide to this scheme.

The bike to work scheme is a Government initiative that encourages companies to loan bikes and the necessary security gear to their workers in the form of tax-free gains. There are not any limitations on the kind of companies that can participate in the scheme. Nevertheless, workers have to be enrolled to PAYE to pay their taxes. This means that self-employed people and those who are on National Minimum Wage are discounted. The main reason for this is that the payments from the worker to cover the sale cost of the bike and safety gear come straight from their gross wage. Such a salary sacrifice scheme saves the worker cash in numerous ways. The participating team members make National Insurance and Tax savings, and then the loan from the company is interest-free and repayment terms are usually set between the company and worker. Workers that want to make this lifestyle change don't need to make use of the bike for all of their work travel. It could be used to replace the car journey to or from a train station, or to continue their journey to work from the school run. There's no limitation to how much could be loaned to an employee under this scheme, however, when the order is over £1000 FCA regulations require independent authorisation. Companies should check the Financial Conduct Authority and the Office of Fair Trading when taking part in such schemes.

When you put your benefits packages together with Team Rewards, it will save you from doing all of the legwork yourself. With our service, compliance is assured, which can put your mind at ease. Learn more about our bike to work schemes at, or you can also e-mail your questions to

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