Bike Purchase
It sounds like a tax dodge. But it’s not only legal it’s actually encouraged by Government! Hundreds of organisations and thousands of individual across the UK are benefiting.
A Treasury-backed incentive scheme allows employees to obtain bicycles through their employer at up to half price. Employers buy the bikes (accessories and clothing may also be purchased) and then it’s all effectively "loaned" to staff as a tax-free benefit. The only condition is that the bikes are used for work-related purposes such as commuting. A "rental" charge is deducted from the employee’s salary each month for at least one year, and then, at the end of the load period, they also have the option of "buying" the bike for a nominal sum.
Employees’ payments are free from Income Tax, National Insurance and VAT. This can add up to a saving of up to 50 percent off the recommended retail price. Plus they enjoy the benefit of paying in easy stages.
Setting up a bike purchase scheme is a fairly complex process. Happily, help is at hand. Three companies specialise in facilitating and administering purchase schemes. These are Booost, Cycle2Work, and CycleScheme. There is also a purchase scheme for electric bikes run by Powabyke. Click the links to the right of this page to find out more
