There are many different employee benefits on offer nowadays, and one of the most popular forms is salary sacrifice. From childcare vouchers to holiday trading, the options are endless. However, one of the most beneficial is the Bike to Work scheme. If you are not familiar with this scheme, read on to discover everything you need to know.
This is a government tax exemption initiative that was introduced in the UK in 1999. The purpose of the initiative was to reduce pollution and to encourage people to take a healthier journey to work. In basic terms, this scheme gives employees the ability to hire safety equipment and bikes from their employers as a tax-free benefit. There are benefits for both parties when it comes to this scheme. Let’s begin by looking at employee benefits. Firstly, employees will save a considerable sum of money, not only in relation to travel costs but they can save more than 40 per cent on the cost of bikes and equipment. The costs are also a lot easier to manage too, as they can be spread over 12 or 18 monthly payments, and can also be interest-free. They can also tone up, lose weight, and improve their overall well being. For the employer, the benefits are just as extensive. You can boost your company’s environmental policy by reducing your carbon footprint and you can save around 14 per cent in terms of reduced NIC. You will also have healthier and fitter staff, which in turn means more productive staff. They are less likely to be absent through illness or stress.
Hopefully, you now have a better understanding of the Bike to Work scheme. This is definitely an employee benefit that all businesses should consider implementing. Talk to your staff to see if this is something they would be interested in and take it from there.