Cyclesurgery have been supplying bikes through the Government scheme for a number of years now.
The Tax Free Cycle Scheme is a simple way for you to buy a quality bike while making big savings through your company via a salary sacrifice scheme. The amount you actually save depends on your income tax band, and also whether you employer is able to pass on the VAT saving to you, but historically, savings could be around 40% off the usual retail price.
How does it work?
Through Cyclesurgery Tax Free Cycles you can make huge savings on a bike for work through your employer.
The Government’s Green Transport Plan allows you to get a bike, through your employer via a salary sacrifice scheme.
This means that you take a reduction in salary over an agreed term that equals the value of the bike that you have chosen. You will not pay any Income Tax, National Insurance or VAT on the bike, and you pay the money back as a monthly reduction in salary.
At the end of the period your employer may choose to offer to sell the bike to you for one final payment at a fair market value. The bike is then completely yours.
You can also include the costs of any accessories such as helmets, locks, lighting and cycle clothing into the scheme.
Will it cost the company?
No - in fact they'll save money too.
Companies running the scheme will also save money, as they will not have to pay any Employers National Insurance on any reduced salaries. Profitable companies can also benefit from corporation tax savings.
See the table below to see how much you can save on your new bike by joining the scheme:
|
£400 Package |
£700 Package |
£1000 Package |
|
Standard Tax |
Higher Tax |
Standard Tax |
Higher Tax |
Standard Tax |
Higher Tax |
| VAT Saving |
£59.57 |
£59.57 |
£104.26 |
£104.26 |
£148.94 |
£148.94 |
| Income Tax Saving over hire period |
£68.09 |
£136.17 |
£119.15 |
£283.30 |
£170.21 |
£340.42 |
| National Insurance Saving over hire period |
£37.45 |
£3.40 |
£65.53 |
£5.96 |
£93.62 |
£8.51 |
| Net monthly salary sacrifice |
£19.57 |
£16.47 |
£34.26 |
£29.29 |
£48.94 |
£41.84 |
| Total cost of bike package |
£234.89 |
£200.86 |
£411.06 |
£351.48 |
£587.23 |
£502.13 |
To find out more about the Tax Free Cycle Scheme and how Cyclesurgery can get you and your company on your bikes, head to our special website, full of resources to answer all your questions on running the scheme.
www.taxfreecycle.com
What do I do next?
Get in touch with our Tax Free Cycle Representative on the below email and we will talk to your HR department to see how Tax Free Cycles will work best for you and your company. All being well, we’ll have you up and running within a few days.
James.robertson@cyclesurgery.com
Email for more information.
My Company already runs CycleScheme can I spend my vouchers in a Cyclesurgery?
We have been accepting Cyclescheme vouchers for years now, and if your company runs this as part of your benefits package - fantastic - come down to one of our stores and speak to one of the team to get first rate advice on the best bikes available for the type of riding you do and your budget.