Following the covid 19 pandemic, the governments of European countries have implemented aid to encourage their populations to use the bicycle for their trips. This ecological and economical means also makes it possible to maintain social distancing.
Hope that these devices motivate all users in the long term to use their bikes regularly as a means of transport and leisure.
In the United Kingdom, the process is called cycle to work, by a tax break, it allows you to buy a bike and its accessories at the best price.
The aim is to encourage employees to cycle to work. The bikes offered are therefore essentially city bikes but you can also choose a road bike, a mountain bike, an electric bike or a fixie.
Who can use this advange ?
All employees in the United Kingdom can benefit from the cycle to work. A small portion of your salary is withdrawn to benefit from the tax credit for the purchase of your bike.
The savings can go up to 40% for the highest tax rates but it is generally 32% on average. The amount of the reduction depends on your tax rate. Cyclescheme and Halfords are the biggest bicycle suppliers, they have calculators that let you know what savings you can make before your purchase.
What types of components are concerned ?
You must first acquire just bike, just occessories or a complete bike then you can add accessories such as mudguards, a luggage rack, saddlebags, cycling clothing to be visible to road users, a helmet for safety, a lock and lightings. However, parts, shoes, child seats, cycle computers and child bikes are not concerned by this program.
How to benefit from this advantage ?
Your employer must register with a plan provider. If this is not the case, he will have to initiate the process. Then you choose the bike and the accessories you want on the websites or stores of retailer such as Cyclescheme or Halfords (2000 retailers are registered) and then you ask your supplier for a letter of withdrawal after signing the contract. Your employer will then validate it. You can then collect your bicycle and its accessories by presenting the withdrawal letter. As soon as you have your bike and its accessories, the agreed sum will be withdrawn from your salary.
The total invoice amount is usually limited to £ 1000 by employers but it can be higher if they wish. However even if your bike exceeds this amount your reduction will apply to the £ 1000. For example, for a £ 2,500 bicycle and its accessories you could save £ 420 if you are in the highest tax bracket and your employer limits their envelope to £ 1,000.
Take care, this device has met with great success which has created a shortage of bicycles and equipment among many suppliers and manufacturers like the biggest brands Giant, Boardman, Btwin, ..., it is therefore necessary to anticipate your choice and to be patient but in the end you can make good savings and acquire modern and efficient equipment such as an electric bicycle .
Benefits for employer :
The information sheet is easily completed on the internet then the file is validated within 2 weeks.
your employees will be grateful to have saved 40% on the means of transport and to stay in shape without polluting the planet to move, it is a good signal for their motivation.