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The Accountants for Growth

Cycle to work scheme

Cycle to work scheme
How can you improve your fitness, help the environment and get a tax break all in one go? By signing up to the Cycle to work scheme which was introduced in 1999.
The scheme allows employees to finance the purchase of bikes and equipment and at the same time make a significant saving on the overall cost.

You can use your bike to cycle to work and for leisure and at the end of the scheme period you can buy your bike from your employer at around 25% of its original cost.

How does it work?
The scheme allows you to buy a bike and equipment and pay it off over the next year in mothly installments. This is the 'hire period'; after this, you can give the bike back to your employer or purchase it at market value.

If you want a bike costing £1000, then your monthly salary sacrifice will be £83.33 per month and becuase you save on PAYE and national insurance a basic tax payer will save £26.66 per month and only actually pay £680 towards your £1000 bike.

If you buy your bike off your employer at the end of one year you would need to pay them £250 so your overall saving would equate to 7% of the cost of the bike.

Now local councils are becoming more aware that they need to improve road facilities for cyclists and steps have been taken in Birmingham and Leicester to make the roads more cyclist friendly.

So why not give it a go?
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