How Businesses Can Benefit from the Cycle-to-Work Scheme
The cycle-to-work scheme is a government initiative that aims to promote cycling as a healthy, environmentally friendly, and cost-effective mode of transportation. The scheme allows employees to purchase bicycles and cycling equipment tax-free through salary sacrifice, meaning they can save up to 42% on the cost of the bike and accessories. In this blog, we will discuss how businesses can benefit from the cycle-to-work scheme.
By encouraging employees to cycle to work, businesses can save money on car parking, fuel, and other transportation-related expenses. Also, participating in the cycle-to-work scheme allows employers to benefit from the tax and National Insurance savings associated with salary sacrifice. For example, you can save 13.8% on employer National Insurance contributions by purchasing a bike. Therefore, if you buy a £600 bike for an employee, you’ll save £82.80 on their NICs over the course of their employment.
At the same time, because the cost is deducted from the employee’s gross salary before National Insurance and income tax, they save money on the bike and equipment.
Depending on whether they are a basic-rate or higher-rate taxpayer, this might mean paying 20% to 40% less in total taxes, which can be reinvested in the business or passed onto employees as a bonus.
Improved Employee Health and Wellbeing
Cycling is a great way to promote employee health and wellbeing. Regular cycling can reduce the risk of heart disease, stroke, obesity, and other health conditions. By providing employees with access to affordable bicycles and cycling equipment, businesses can encourage them to lead healthier and more active lifestyles, which can result in reduced absenteeism, increased productivity, and improved job satisfaction.
Enhanced Corporate Social Responsibility
By promoting cycling to work, businesses can demonstrate their commitment to sustainability and corporate social responsibility. Cycling is a low-carbon mode of transportation that can help reduce greenhouse gas emissions and improve air quality. Businesses can reduce their carbon footprint and contribute to a more sustainable future by encouraging employees to cycle to work.
Increased Employee Engagement and Retention
Offering the cycle-to-work scheme as an employee benefit can help businesses attract and retain talent. By providing employees with access to affordable bicycles and cycling equipment, businesses can demonstrate their continued commitment to employee wellbeing and work-life balance. This can result in increased employee engagement, motivation, and loyalty, having a positive impact on overall business performance.
Improved Corporate Image
By promoting cycling and sustainability, businesses can improve their corporate image and reputation. By participating in the cycle-to-work scheme, businesses can demonstrate their commitment to environmental and social responsibility, which can enhance their brand value and attract customers who share similar values.
Hysons Are Here to Help.
Businesses can improve their reputation and brand image by encouraging cycling and awareness of sustainability. By promoting cycling as a healthy, sustainable, and cost-effective mode of transportation, businesses can benefit from reduced costs, improved employee health and wellbeing, enhanced corporate social responsibility, increased employee engagement and retention, and improve corporate image and reputation. If you need any help with setting up the scheme and support with payroll and deductions, talk to our friendly team today who will be happy to help.