Help your employees save up to 48.25%* on a new bike.
Bike2Work Scheme is a free employee benefit approved by the government, designed to get more people cycling to work and living healthier lives.
The employee benefit that saves you money.
As an employer, you know the benefits of offering a competitive benefits package to employees and candidates. But most benefits come at a cost to the business, which isn’t always feasible. Bike2Work is not only free but it can save you thousands in national insurance contributions and contribute to workplace productivity.
How it Works
Bike 2 Work scheme FAQs
Once your payment has cleared with our bank (please note BACS payments take 3 working days to clear) it takes us up to one business day to process the payment and release the certificate to your employee.
You can pay your invoice to the bank details provided. Alternatively, if you wish to pay via card, call us on 0330 088 4765.
Following your registration, you’ll be ready to promote the scheme and its many benefits to your team.
Here are some suggestions:
- Create a page under the staff benefits section of your intranet / handbook.
- This could feature a general explanation of the scheme, along with any conditions or notes you wish to convey to employees.
- Your company pin could also be included here along with necessary links to our home page.
- Place posters around your office/workspace.
- Visual aids like posters are a great way to familiarise employees with the concept of the scheme.
- Ensure you include some information on the scheme when sending out welcome emails or issuing starter packs to new employees.
Bike2Work Scheme allows for employees to make amazing tax savings when obtaining commuter bikes and cycling accessories through their employer, whilst also spreading the cost out over an extended period of time.
Bike2Work Scheme is an employee benefit that uses ‘salary sacrifice’.
This involves the employee agreeing to give up part of their salary in exchange for a company approved benefit (The Bike2Work Scheme). This is taken from their gross salary (before tax) which means that the employee will pay less Income Tax and National Insurance (NI), which will reduce your National Insurance Contributions (NICs) bill.
The employer pays the initial cost of any bike purchased via the scheme (inc VAT) and the employee pays that full amount back to the company. As the employer has paid VAT in the first instance they are able to claim that back. Over the duration of the hire period the employer must declare the VAT as output tax on their returns whether this be quarterly or half yearly.
Paying the VAT and declaring output tax balances each other out so it is neither a financial gain or cost to the company.
For example:
Cost of bike: £1,000
Company pays out: £1,000 (inc VAT)
Claims VAT back: £166.67
Employee pays employer: £83.33 p/month (includes £13.89 VAT)
At the end of the 12 months, the employer has received: £1,000 from the employee (12 x £83.33)
Employee declares VAT paid in as output tax: £166.67 (£13.89 x 12)
The employer has claimed back £166.67 in the first instance and declared £166.67 at the end which balances each other out on the VAT return.
The company would also make a saving of 15.05% of National Insurance Contributions for each employee who enters into the scheme.
For example: £1,000 bike
Company saves: £150.50 (15.05% of £1,000)
This saving would be made on every employee who entered the scheme so could potentially be a significant financial benefit.
