It's widely recognised that regular cycling is good for your body and the planet, but did you know that buying your new bike and accessories through a cycle scheme can be good for your wallet too!
In fact, you could save up to a massive 42% off that new bike you’ve been dreaming about!
More than 400,000 people have already bought a bike using a cycle scheme, which was introduced as a tax exemption in 1999 by the government, to ‘promote healthier journeys to work and reduce environmental pollution’.
How do cycle schemes work?
In essence, your employer buys a bike for you to ride to work. You ‘hire’ it through salary sacrifice (which is where you save, by not paying tax and National Insurance on the monthly fees) and at the end of the ‘hire’ period you buy the bike from your employer, for a nominal fee.
Because it was set up to promote work journeys rather than cycling in general, your employer technically remains the owner of the bike once you finish the hire period. Everyone knows that in practice the employee is ‘buying’ the bike, but that isn’t legally the case until the salary sacrifice ends and the employer ‘sells’ the now heavily depreciated equipment to the employee.
What’s in it for you?
- Savings of up to 42% on a new bike and accessories*
- Regular exercise to keep you fit and healthy - 30 mins at 10mph will burn 200-300 calories (source: NHS)
- Reduced commuting costs - a £500 bike typically pays for itself within 4 months, compared to driving a car (source: ONS)
- Helps minimise your impact on the environment - a 2010 Ford Focus 1.6 diesel produces 2.3 tonnes of CO2 per year (source: Carbon Trust)
- A free service (worth £30) with your new bike, to keep it in tip-top condition