Cycle to Work Scheme for Employers

How does the Cycle to Work Scheme benefit employers?


There are several benefits to employers, including personal and social benefits. However there are also some big positives for employer finances.

The Financial savings  of Cycle to Work for employers

1. National Insurance Savings
Employers can save up to 15% on National Insurance contributions for every employee who participates in the scheme. This translates to an average saving of £150 on every £1,000 processed through the scheme, helping businesses reduce costs while supporting their employees' wellbeing.

2. VAT-registered employers can reclaim the VAT paid on the purchase of the bike and accessories.

3. A bike is a legitimate business expense so the cost is offset against your tax.

  • 4. Annual Investment Allowance (AIA):
    Employers can use the AIA to fully deduct qualifying capital expenses, including bikes and equipment, up to £200,000 annually from their taxable profits.
  • 5. As the employee is repaying the cost of the bike to you anyway, you get these tax benefits in addition to saving the 15% NI.

  • The Personal and Social Benefits of Cycle to Work for employers

  • 1. Employee health and Wellbeing
    Cycling is a proven way to improve physical and mental health, and employees who ride to work often report feeling more energised and productive. Employers could experience less absenteeism and work could become more of a social hub - how about a ride club?

    2. Reduces Carbon Footprint
    With the push for sustainability, cycling offers a low-emission alternative to car and public transport commutes, helping companies meet environmental goals.

    4. Cost-effective Employee Benefit
    Offering the scheme can help with recruitment and retention as it’s an attractive benefit that employees genuinely value. And, since it’s tax-efficient, it doesn’t cost the employer much to implement.

    5. Eases Parking and Reduces Congestion
    Employers benefit from reduced pressure on parking spaces and lower traffic congestion near their workplaces.

    6. Boosts Corporate Social Responsibility
    Employers supporting cycling can leverage this as part of their CSR initiatives, showcasing their commitment to the environment and employee wellness.