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Unlocking The Benefits Of A Cycle To Work Scheme For Your Employees

  • Written by Business Daily Media



What is a Cycle to Work Scheme?

A Cycle to Work scheme is a salary sacrifice arrangement offered by employers to encourage employees to cycle to work. Through this scheme, employees can choose to purchase a bike and accessories, such as a helmet or lights, in monthly instalments from their pre-tax salary. 

This not only provides employees with a more affordable way to buy a bike, but it also offers them significant savings on the cost of the bike, as they do not have to pay national insurance or income tax on the salary amount sacrificed. 

Both employers and employees can enjoy benefits when a Cycle to Work scheme is implemented, as detailed below.

By participating in a Cycle to Work scheme, employees can unlock the benefits of bike ownership, including improved physical and mental health, reduced commute costs, and a more sustainable and environmentally friendly mode of transport. Additionally, employers that implement this scheme can enjoy a range of advantages, such as a more engaged and productive workforce, reduced absenteeism, and a positive impact on their organization's overall environmental footprint.

Benefits of Cycle to Work Schemes for Employees

Cycle to Work schemes offer numerous benefits for employees, making them an attractive employee benefit. One major advantage is the opportunity to keep physically and mentally fit and healthy. By incorporating cycling into their daily routine, employees can improve their cardiovascular health, build muscle strength, and increase overall fitness levels.

What’s more, regular exercise has been proven to improve mental health, thanks to the release of endorphins, which help reduce stress, anxiety and depression. 

Another key benefit is reduced commuting costs. Employees can save a significant amount of money by opting for a cycle to work scheme instead of relying on public transport or driving to work. This not only reduces fuel and parking expenses but also eliminates the need for costly annual travel passes.

Cycling to work can also help employees beat congestion. By avoiding traffic jams and choosing a faster mode of transport, employees can arrive at work more efficiently and with less stress than on long and frustrating commutes.

In addition, cycling to work contributes to a reduced carbon footprint. By choosing to ride a bike instead of using a car, employees actively participate in the global effort to reduce air pollution and help combat climate change.

Implementing such schemes as part of a comprehensive employee benefits platform package can be an effective strategy for enhancing employee wellbeing and satisfaction.

Benefits of Cycle to Work Schemes for Employers

Cycle to Work Schemes not only offer benefits to employees but also provide several advantages for employers. One key benefit is that it enhances benefit packages offered to employees. By providing an attractive and sustainable commuting option, employers can showcase their commitment to employee well-being and work-life balance. This can contribute to higher employee satisfaction, improved retention rates, fewer sick days and a more positive corporate image.

Additionally, implementing a Cycle to Work scheme can help employers address parking problems. With more employees cycling to work, the demand for car parking spaces is reduced, freeing up valuable space for other uses or potentially reducing the need for costly parking facilities.

Moreover, promoting cycling as a means of commuting fosters a healthier workforce. Regular physical activity, such as cycling, is known to have numerous benefits for overall health and well-being, including increased energy levels, reduced stress, and improved mental focus. 

By encouraging employees to cycle to work, employers demonstrate a commitment to employee health, leading to increased productivity and lower healthcare costs.

How a  Cycle to Work Scheme Works

A Cycle to Work scheme is a salary sacrifice, tax-efficient arrangement that allows employees to purchase bikes and bike equipment through their employer, offering a range of benefits to both. The process typically involves the employee choosing a bike and accessories from an approved bike dealer, who may offer the option to pay in instalments. 

The employer then purchases the bike and accessories on behalf of the employee, who repays the cost of the bike through monthly salary deductions. This arrangement not only provides employees with the opportunity to purchase a bike quickly and easily, but also offers a range of benefits to both employers and employees. 

The employee makes fixed monthly repayments, usually over a maximum 12-month period, to cover the cost of the bike and equipment. These repayments are made from the employee's gross salary, resulting in savings on income tax.

A Cycle to Work Scheme is an effective way for employers to support their employees' wellbeing by promoting active and sustainable commuting. It also offers financial benefits to employees through tax savings and the ability to pay for their chosen bike and equipment in manageable instalments.

Is there an Age Limit for using a Cycle to Work Scheme?

When considering the eligibility requirements for a Cycle to Work Scheme, age limitations are an important factor to consider. While there is no specific age limit for participating in the scheme, certain age-related factors may impact an employee's ability to fully benefit from it.

In general, most employees of working age, typically 16 years old and above, are eligible to participate in the scheme. However, employees who are nearing retirement or have already reached retirement age may have limitations when it comes to certain aspects of the scheme. For example, they may have shorter repayment periods available to them or may find it challenging to take full advantage of the potential financial savings.

Employers implementing a Cycle to Work Scheme need to take into account the age distribution of their workforce when designing the scheme. They should consider offering different options or incentives to cater to the needs and preferences of employees across different age groups. For instance, older employees may prefer electric bikes or bikes with additional features to accommodate any physical limitations or health conditions.

Bike Choices  Available through a Cycle to Work Scheme

When participating in a cycle to work scheme, employees have access to a wide range of bikes from over 2,600 approved retailers . This includes popular options such as road bikes, mountain bikes, hybrid bikes, and electric bikes. Whether employees are commuting to work on busy city streets, exploring off-road trails at the weekend, or simply looking for a comfortable and efficient ride, there is a bike to suit their needs. 

Additionally, employees can select from various brands and models within each category,  allowing employees access to high-quality bikes from reputable bike dealers, ensuring that participants are able to choose the bike that perfectly suits their needs.  


Additionally, the Cycle to Work scheme also offers the option for employees to spread the cost of their new bike over 12 months. This makes owning a high-quality bike more affordable and accessible. By paying in monthly instalments, employees can enjoy the benefits of their new bike without breaking the bank.

Choose the right pedal partner

With over 30 years’ experience helping companies choose the right benefits for their employees, BHN Extras’s Cyclescheme gets more adults in the UK cycling into work than any other scheme provider. So, contact the experts if you are considering a Cycle to Work scheme that will boost employees’ physical and mental wellbeing, whilst reaping the financial benefits. 

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