An employer’s guide to the Cycle to Work scheme

You have to ‘train’ a lot. It can ‘drive’ you round the bend.

Those jokes are flatter than a burst tyre, but what if we told you there’s a way to travel into the office that saves employees money, helps them stay fit, and provides a greener alternative for Mother Earth.

Oh no we hear you cry, another work scheme!

Fear not. The Cycle to Work salary sacrifice scheme is the perfect wellbeing benefit.

And it isn’t brand-spanking new either! Perhaps now being remembered as hybrid/office working once again rules over working from home.

Post pandemic, the reliance on public transport has declined. Rising costs and busier routes have turned your average Joe commuter towards different ways of reaching the office.

But should they consider two wheels instead of four? When it comes to ‘doors or wheels’, why give our brass-handled (well most of the time) friends a head start?

According to CycleScheme¹, 51% of people now want to cycle to work! And with the opportunity to spread the cost of a new bike over 12 or 18 months while making tax and National Insurance savings, you don’t have to be Mark Cavendish to realise making the transition from seat to saddle is a good deal.

The Tour de France of workplace wellbeing benefits

So, how does it work?

• Employees can hire a bike and/or safety equipment to travel to work, usually for a period of 12 or 18 months.
• Saving employees tax and NI, they select a voucher or choose a bike from you or your third party.
• They will agree with the hire arrangement and pay the full value of that through salary sacrifice.
• At the end of the hire agreement, the employee can either extend the agreement, return the cycle and/or equipment or buy it outright.

Burn calories, not cash

Saving money and staying fit is the perfect combination to some employees. For employers, Cycle to Work can increase productivity and improve your carbon footprint. For society, it means lower congestion, and better air quality.

A cost-effective way to save your employees up to 42% through salary sacrifice contributions, your employer Cycle to Work scheme can leave other transport methods trailing behind.

And as we continue to battle through a cost of living crisis, commuters are looking to chop and change their routine to try and put a few extra quid in their pocket. According to Mobility Ways²  – the Commuter Census 2022© reported that the average five-day car commute equates to £1,610 a year in fuel alone.

So why not offer an alternative to the standard journey to work? An off-road adventure, or a quiet country lane perhaps. Add that to the savings your company bike scheme will make both financially and environmentally and you have yourself a recipe for success.

It’s time to put pedal to the metal. Find out how Zest can help you implement an innovative flexible benefits scheme that includes Cycle to Work.