Travelling to work can cost the earth in more ways than one and that’s why more and more people are opting to bike to work and leave the car at home. As well as helping employees reduce the cost of travel, companies can make significant savings in National Insurance too.
Through the bike to work scheme employees get a new bike for travelling to work, and because they pay for it through a salary sacrifice arrangement, employees can make significant savings in income tax and NI.
Employers save money through reduced employers’ NI contributions.
The bike to work scheme really appeals to staff looking to reduce their travelling costs and to get fit at the same time. So, you get a healthier and happier workforce along with company savings too.
- Reduced travel costs
- Employees can make significant savings on the cost of their bike and accessories – standard rate tax payers can typically save 32% and higher rate tax payers can save 42%
- The cost of the bike is spread over 12 or 18 months
- There are no credit checks to worry about
- We provide a bike to work calculator tool so your employees can check out the total cost before they order, along with any tax and NI savings they could make
- They save money on fuel and parking costs and get fit at the same time
- Through our partnership with Halfords, employees have access to over 460 stores in the UK and an extensive range of bikes to suit all tastes and budgets
- For employees who prefer to choose a bike from an independent retailer, we also provide bikes through Halfords’ Partner Store Network, providing an extensive nationwide network of over 700 stores.
- A healthier and fitter workforce
- Improved staff retention
- Employers can expect to save full employers’ NI, typically 13.8% on the total salary sacrifice value
- Employers can set a maximum spending limit for employees and different limits can be set for different groups of people