I have had two bikes from the scheme saving over £700 in the process. If you are not taking advantage read below and strt researching. Even if you spend more than £1000 on a bike, you can still use the fdiscount to contribute to your new purchase.
The Governments aim:
To promote healthier journeys to work and to reduce environmental pollution, the 1999 Finance Act introduced an annual tax exemption, which allows employers to loan cycles and cyclists’ safety equipment to employees as a tax-free benefit. The exemption was one of a series of measures introduced under the Government’s Green Transport Plan. The following guidelines clarify how organisations can take advantage of the exemption to implement a Cycle to Work scheme that encourages employees to cycle to work and allows employers to reap the benefits of a healthier workforce. (www.dft.gov.uk)
How a cycle to work scheme worksYour employer may either run a cycle to work scheme themselves or through a third-party provider, like a bike shop. Through the scheme, you could get access to a loaned bike and/or safety equipment.
You must use the bike and/or safety equipment mainly (more than 50 per cent of the time) for 'qualifying' journeys. This means a journey or part of a journey:
- between your home and workplace
- between one workplace and another
- to and from the train station to get to work
Making loan repaymentsYour employer may want to recover all or part of the cost of loaning you the bike and/or safety equipment. If so, you would then make loan payments back to your employer over an agreed period (typically 12 to 18 months) to spread the cost.
The loan payments are usually taken out of your salary through a 'salary sacrifice' arrangement. This means you agree to accept a lower amount of salary in return for a benefit - the loan of a cycle and/or safety equipment. For more advice about the salary sacrifice arrangement and what you should consider before taking part, ask your employer or follow the link below.
At the end of the loan, your employer may give you the opportunity to buy the bike for its full market value, if you wish. Or, you may be able to continue loaning the bike at no cost - as long as you still use it for qualifying journeys.
Talk to your employer about the scheme
It's up to your employer to decide whether to run a cycle to work scheme and how it will work. So, talk to your employer directly if you're interested in taking part.
Make sure you check whether you or your employer will be responsible for maintenance and insurance for the bike. You should also ask your employer what happens if you decide to leave the scheme before the end of the loan period. (www.direct.gov.uk)
For full details download and read the following assets.dft.gov.uk
A number of companies have set up to help administer the process. Below are just a few: