Salary Sacrifice Products

CYCLE TO WORK SCHEMES

The 1999 Finance Act introduced a tax exemption which allows employers to provide employees with bicycles and accessories as a tax-free benefit. The exemption applies as long as the bicycles are used, at least in part, for journeys made between the employee's home and their place of work (or part of those journeys). The Cycle to Work scheme is part of the Government's Green Transport Plan, promoting healthier journeys to work and reducing environmental pollution.

Employees taking advantage of the scheme will enjoy savings of up to 50% of the retail price of their chosen bicycle. Operating via salary sacrifice, payment for the bicycle by the employee is by way of deductions from gross pay. This gives rise to tax and national insurance savings for the employee and national insurance savings for the employer too.

Fair Care has developed a simple, fully-outsourced solution for employers wishing to implement this benefit, with any costs being more than covered by the employer's national insurance savings.

For more information on how the scheme operates, please download our Guide for Employers.

If you would like to set-up a scheme, please contact us on the number above and we can gather all the information needed to launch a scheme in one simple phone call.