DHC Accounting

Unit 7, Lillyhall Business Centre
Jubilee Road, Workington
Cumbria, CA14 4HA
Tel: 01900 64464 - Fax: 01900 64466

Search News


Implementing a Cycle to Work Scheme

Source: HM Government | | 27/06/2017

The Cycle to Work scheme was introduced in 1999 to help promote a healthy commute to work.

The scheme allows employers to provide (technically loan) bicycles and cyclists’ safety equipment to employees as a tax-free benefit. Where the scheme conditions are satisfied, employees can benefit from a tax and National Insurance Contributions (NICs) reduction of between 32% and 42% through a salary sacrifice arrangement; there are also possible employer NIC savings.

The cycle to work benefits only relate to the loan period, and it is commonplace for an employer or a third party bicycle provider to offer the employee the bicycle / equipment they have been using for sale after the loan period has ended. The bike may be offered to the employee for sale at a fair market value but this must be done as a separate agreement.

Planning note: Employers of all sizes across the public, private and voluntary sectors are eligible to take part in the scheme with the proviso that no employees or groups of employees are excluded. We can help you set up a scheme and advise on the subsequent sale of the bike. 



 

Latest News

Pension money purchase allowance reduction 2017-18
20/09/2017 - More...
One of the measures announced in the March 2017 Budget was the reduction in the annual Money Purchase Allowance (MPAA)

Tax relief for electric vehicle charging points
20/09/2017 - More...
In last year’s Autumn Statement, the Chancellor announced a new capital allowance for electric vehicle charging points.

When is a car a van for VAT reclaim purposes?
20/09/2017 - More...
In most cases a business is unable to reclaim the VAT charged when they purchase a car. However, there are different

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

 

 

Copyright © 2017 - DHC Accounting

Cookie Policy