The Cycle to Work Scheme
Posted on By Emu Bikes,
Originally introduced in the UK in 1999, the official government Cycle to Work (CTW) scheme allows anyone to get a bike and biking accessories tax free. And yes, this includes Electric Bikes!
The scheme is considered a huge success in getting people to cycle more. In June 2016, the Institute for Employment Studies carried out an evidence report called the ‘Impact of the Cycle to Work Scheme’ and found that 9% of all respondents to the scheme were non-cyclists and begun cycling as a direct result of CTW. Additionally, 57% of cyclists were found to be cycling to work more frequently due to the scheme.
But how does the scheme work and how can employers and employees sign-up?
What is the Cycle to Work Scheme?
The CTW allows employees of firms who have signed up to the scheme to get money off traditional bicycles, e-bikes and safety equipment (such as helmets and Hi-Vis clothing).
There is no single scheme which employers have to sign-up to. Some larger firms have their own in-house schemes and some have deals with biking retailers. However, many use a range of free third party schemes which offer differing perks.
Here at Emu Electric Bikes we recommend the Green Commute Initiative which allows you to save up to 42% and has no price cap. Many schemes have a £1000 cap limit where employees have to make up the difference. However, as the Green Commute Initiative is FCA authorised there is no such limit! This means employees are eligible for full savings on any one of our electric bikes and safety accessories.
How it Works
The CTW allows employers to buy a bike tax free for an employee. The employee then buys back the bike from their employer with a monthly salary reduction via the PAYE system. This repayment period is usually 12 months, but different schemes allow for longer or shorter repayment periods to suit individual needs.
Once this repayment period is over (also referred to as a ‘hire period’) and the bike has been fully paid for, the employee then receives full ownership of the bike from their employer. The bike is then officially theirs.
The process is extremely simple:
Step 1) If an employer is not already set-up with CTW, they can register to the Green Commute Initiative for free.
Step 2) The employer receives a voucher allowing the buy any bike of their choosing, tax-free.
Step 3) The employee hires the bike from the employer and begins repayment over a set amount of time (between a 6 and 24 month period).
Step 4) Once the full tax-free cost of the bike has been repaid, the employee can choose to own the bike.
Applying for an Electric Bike
For more information on how Emu Electric Bikes can work with both employees and employers, please fill out the e-Bike Cycle to Work scheme form.