Riding your bike to work under the bike to work scheme is an option well worth considering. It is a great way to make savings on a new bike while also getting fitter in the process. As an employer, this offers many benefits for your business, from financial savings to a more productive workforce.
If you have any questions regarding this salary sacrifice scheme, we hope you will find the answers in this post. Will you have to ride a bike to work every day under this scheme? Of course, using your bike as part of your daily commute is the aim of the bike to work scheme but the general rule is the bike should be used for no less than 50% of the time and this can be just for part of the journey. If you are running late or you are simply not feeling up to it one day, you are not going to find yourself in any trouble for taking an alternative mode of transport instead of riding your bike to work. Do you need to insure the bike? It is advisable to do so. Cycle-specific insurance plans will often cover roadside recovery, as well as personal and third party medical insurance cover. Needless to say, the cost of theft replacement will also be included. Who is responsible for the maintenance of the bike? The person using the bike is responsible for the maintenance of it. Can I use the bike for non-work purposes? Yes, you don’t need to log where you go under this scheme, but you should make sure that the bike is mainly used for commuting to and from work.
Of course, if you are an employer, you may also have some questions. For example, who can participate in the scheme? Any type of employer from any industry can take part in the bike to work scheme. To be eligible for the salary sacrifice arrangement, employees gross salary should not go below National Living Wage once salary sacrifice has been deducted, and they must also receive their salary via the PAYE system. Under 18s are able to join the scheme, so long as their guardian signs a guarantor agreement, and there is no credit check for any employees wishing to participate. Is there an Open Framework Agreement? Yes, public sector organisations can take advantage of an Open Framework Agreement. What is the maximum certificate value workers can choose though the scheme? £1,000 including VAT is the maximum certificate value per employee. There is a higher value of £4,500 for employers that have Consumer Credit Authorisation from the Financial Conduct Authority (FCA). Can those who are self-employed join? If you receive a salary via the PAYE system, you can sign-up as an employer and participant. Otherwise, you won’t be able to.
Hopefully, you now have a better understanding regarding the bike to work scheme, irrespective of whether you are an employer or you are an employee thinking about riding your bike to work. This is a great scheme for all involved, and there are hundreds of thousands of participants across the UK.