Cadence Performance supports the UK’s Cycle to Work scheme, which allows employees to buy bikes and gear through their employers using pre-tax salary (known as salary sacrifice). Benefits include cost savings, improved health and well-being, a positive environmental impact, and reduced commuting expenses. It’s a win-win situation.
How do Cycle-to-work schemes actually work?
- Employer participation
Your employer registers with a Cycle to Work scheme provider. At Cadence Performance, we support a wide range of schemes, including Cyclescheme, Green Commute Initiative, Bike2Work, Vivup, Cycle Solutions, Caboodle, Halfords, and Salary Extras.
2. Employee selection
You then choose the bike and accessories you want. The government do not set an upper limit on the value of bikes, so your employer will set this (it includes the bike and any accessories).
3. Salary sacrifice
Your employer then purchases the bike and accessories on your behalf. The cost is deducted from your gross salary before income tax and National Insurance contributions are applied. This reduces your taxable income, resulting in tax savings!
4. Hire agreement
You are essentially “hiring” the bike and accessories from your employer for a fixed period, usually 12 to 18 months, but it can be longer. During this time, you are responsible for the bike and are expected to use it primarily to commute to work.
5. End-of-hire period options
At the end of the hire period, you will usually have three options:
- Keep the bike: You can purchase the bike outright with a final “market value” payment. This payment is typically a percentage of the original price of the bike.
- Return the bike: You can return the bike to your employer and end the agreement without further costs.
- Extend the agreement: Some employers will extend the hire period.
What are the main benefits for employees
- Reduced tax payments: You will reduce your taxable income by using salary sacrifice, resulting in lower income tax and National Insurance contributions.
- Reduced commuting costs: Cycling eliminates the need for fuel, parking fees, and public transport costs, leading to further savings.
- Access high-quality bikes: The scheme makes acquiring high-quality bikes that might have been outside your budget more affordable.
- Health and well-being: Cycling is an excellent form of exercise and can improve overall health and fitness. And it’s a convenient way to incorporate physical activity into daily routines.
- Positive environmental impact: Choosing cycling over driving or public transport reduces the carbon footprint and helps contribute to a more sustainable environment.
Please check the specific terms and conditions of the Cycle-to-Work scheme offered by your employer or scheme provider, as details may vary. Changes to tax regulations or legislation might affect the operation of the scheme.
And by the way, using an e-bike is not cheating!
Research has shown that electric bike users often see notable improvements in aerobic capacity and blood sugar levels. A Norwegian study demonstrated that people aged 23-54 experienced physical exertion 95% of the time, even with pedal assistance.
In the same tests, electric bike users were found to exert 8.5 times more energy than in their resting state, compared with 10.9 times with pure pedal power. That’s a difference of just 12%!
Cadence Performance
At Cadence Performance, our highly trained teams can offer you support in lots of ways. You can contact us in-store at the addresses below, or check out our website to find out more about our services.
Cadence Performance is on your local high street
- Cadence|Giant Crystal Palace, 2a Anerley Hill, London SE19 2AA
- Cadence|Giant Paddock Wood, 62-62a Maidstone Rd, Paddock Wood, TN12 6AF
- Cadence|Giant Shoreham, Little High St, Shoreham-by-Sea BN43 5JF
- Cadence|Giant St Paul’s, 200 Aldersgate St, London EC1A 4HD
- Cadence|Giant St Albans, N Orbital Rd, St Albans AL2 1DL
- Cadence|Giant Twickenham, 111 Heath Rd, Strawberry Hill, Twickenham TW1 4AF
