What is the Tax free bike scheme?
The Tax free bike scheme was introduced by the UK Government to encourage greater participation in cycling.
The Tax free bike scheme enables employers to offer their employees the opportunity to get a bike and cycling accessories via their salary.
This means the employee reduces part of their gross salary before tax, in exchange for a bike and accessories, and benefits from not paying Income Tax or National Insurance on the value of the bike and gear.
Employees can use the bike for commuting as well as for leisure.
Cycle to Work savings are typically 28% - 48% depending on your earnings.
The scheme also acts as a form of interest free loan via salary, to further improve the affordability of getting a new bike.
Neither the employer or the employee is required to keep a log of their use of the bike.