The “stage two” of England’s roadmap for easing coronavirus restrictions will take place on April 12. Hence, quite logically, offices would also begin to reopen gradually from that moment onward.
Thus, you might consider cycling while coming back to work. But before to buy your new bike, did you know that Quanteam UK allows you do it via the Cycle to Work scheme ?
Using it will indeed help you to save up to 42% of the value of your bike and equipment, thanks to a tax-free plan !
Alongside this financial profit, you will also : avoid crowded public transports, help saving the planet from CO2, save money on commuting while easing congestion, and benefit many other advantages !
Introduced in 1999 with the aim of encouraging people to make healthier and more environmentally friendly lifestyle choices, the Cycle to Work scheme helps UK employees to spend tax-free money on bikes and equipment, making a claimed saving of up to 42% on the overall value.
Since then, it has been used by over 1.6 million commuters working for over 40,000 different employers !
How does the Cycle to Work scheme work ?
In essence, Quanteam UK buys a bike for an employee to ride to work, and the employee would hire it through salary sacrifice from the gross salary : the saving is then made by not paying tax and National insurance contributions on the monthly fees.
Is there a limit on the price or on the type of bike ?
Previously capped at £1,000, the UK Government confirmed in 2019 that the maximum amount spent within the Cycle to Work scheme won’t be limited anymore.
What happens at the end of the agreement ?
As the bike is hired from the scheme for the length of the agreement, the employee will have a few options at the end of it :
Rehire the bike
The employee would enter into a new agreement, paying a small refundable deposit to rehire the bike for a certain amount of time, after which it becomes the employee’s property for no extra cost.
Buy the bike or give it back
At the end of the term the bike can be given back to Quanteam UK.
However, it can also be bought, under HMRC rules. The value of this will depend on how long the bike has been used and its initial value, by using a sliding scale.
HMRC legislation is as follows :
Should a contract of employment end before completion of the salary sacrifice agreement, a transfer of ownership process can apply within the HMRC Fair Market Valuation guidelines.
All things considered, if you want to save money, reduce environmental pollution while performing healthier journeys to work, do not hesitate to get in touch with our HR team so we can set up this scheme !