Cycle to Work Scheme Guide for Employers | Boost Benefits
Here's everything you need to know about offering a cycle to work benefit at your organisation.
Cycling to work has been proven to increase employee’s physical and mental health and reduce sick days. And for over 20 years, the cycle to work scheme has helped employers encourage more employees to ride to work with tax free savings on bikes. Read on to understand what the cycle to work scheme is, how much employees can save and whether it's right for your business.
How does the cycle to work scheme work?
Cycle to work is a HMRC scheme that enables employees to pay for bikes and cycling accessories out of their gross salary, saving on tax and national insurance contributions. Employers need to sign up to a cycle to work provider like Gogeta and then employees apply for a voucher, which they can then spend at participating bike retailers.
Cycle to work scheme cost savings
Employees can save up to 40% on bikes and accessories with the cycle to work scheme. And because they pay back the cost monthly, via salary sacrifice, it also lets them split the cost of the bike over 12 months (or longer, depending on the salary sacrifice term you set up) making it even more affordable for employees. To see the savings in action, check out our cycle to work calculator (LINK)
How to join a cycle to work scheme
If you want to offer a cycle to work benefit to staff, you’ll need to sign up with a cycle to work provider such as Gogeta. Gogeta has a nationwide network of retailer partners, so employees can choose to buy from almost any retailer and bike brand, whether it’s an electric cargo bike or a specialist road bike. Because Gogeta has the lowest commission on the market (just 3% versus over 10% with other providers) retailers never charge a surcharge for using Gogeta and so your employees get the best deals. Most importantly, for employers, Gogeta is incredibly simple to set up and easy to use, meaning minimal admin for your team.
Does it cost anything to employers?
No. Offering a cycle to work scheme benefit for staff is completely cost neutral to employers. There’s no cost to sign up to a bike to work scheme like Gogeta and in fact employers can save on national insurance contributions. Here at Gogeta we work with employers of every size, from micro businesses to large companies.
Cycle to work scheme eligibility
Any PAYE employee can use the cycle to work scheme. With Gogeta, employers set their own voucher limits. The only limitations are that an employee cannot salary sacrifice an amount that takes them below national minimum wage.
How easy is it to offer the cycle to work scheme to staff?
We believe it shouldn’t be hard to deliver great benefits to staff, so we designed Gogeta to be simple and intuitive for employers to use. Sign up in minutes online and get access to your own employer portal, which has everything you need to administer the scheme to staff. We handle everything, all your team need to do is make any payroll adjustments in line with salary sacrifice amounts (we make this as easy as possible too with payroll summaries and alerts). We even make it easy for you to let staff know about the new benefit, providing marketing materials to share internally.
How to sign up
If you’re an employer and want to improve employee mental and physical health, as well as improve absenteeism, cycle to work is a great benefit to consider. It’s really simple to sign up, click here to apply online in minutes.
