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Advantages of the Cycle Scheme for Employers and Employees

A bicycle scheme takes into account the purchase of bicycle, associated equipment and accessories. The employer pays for the cycle initially and as per the scheme, an employer offers the employee with the bicycle and its accessories. The employee is liable for benefit-in-kind taxation.

The accessories or bicycle must be purchased by the employer and the cost of it can be recovered from the employee or the user on the basis of a salary sacrifice scheme. The employer initially pays for the bicycle and the employee can pay back the amount through salary sacrifice agreement. The employer provides the bicycle and the employee has to forego a part of the salary over a certain period of time.

A cycle scheme proves to be beneficial for both the employer and the employee. As far as the employee is concerned, it helps to:

1.Maintain increased levels of fitness

2.Is the easiest way to get around the town

3.Low commuting costs

4.Does not project problems such as car parking

5.Helps to create and cleaner and better environment

6.Entitles you to save as much as 49% as a result of tax exemptions

When it comes to employer benefits, the employer can also enjoy multiple benefits.  These include:

1.A healthy and productive workforce

2.Fewer requirements for parking spaces

3.Provide support for a green environment thereby cutting down on carbon emissions

4.Helps to create a green image of the company

5.The employer’s PRSI is not payable on the cost of the bike and its accessories

6.Employees who cycle to work are less likely to be late as the travel time is more or less predictable.

A cycle scheme has been implemented by several countries to curb down the emissions and to contribute to the cause of the environment.

Tags: Advantages of the Cycle Scheme, cycle scheme

Bicycle to Your Workplace

Could you ever think of cycling initiative taken as a major way of office transport system? Yes, with government intervention employers and employee have been able to make a congruent system called “Bike to Work”.

What is this scheme “Bike to work” all about?

It is a green transport plan where an employee would choose a bicycle and associated safety equipment to a certain maximum value and the employer would be responsible for paying for this to the bike providing company. Well, the bike and accessories are the permanent property of the employee but they have an obligation to pay back the costs to the employer (obviously tax exemptions are there) within 12 months or so.

Now this payment could be made through salary sacrifice arrangement and you can do some savings as well. Under the contract of employment, an employee may pay the amount directly from his gross salary account on a monthly basis. Hence in effect you need not to repay from your net salary which is less than the gross. Even with 12 months of long span, the monthly payback is quite affordable.

To avail the sponsorship facility you have to be a salaried person either full-time or part-time and must be paying tax in your country. Regarding the maintenance your local shop can advise you the needful. Like other household policies you can also insure your bicycle either through home insurance agents or specialist insurers.

With such bicycle scheme you can enjoy a lot more freedom also. Once your payback period is over you can use it everywhere even if you join another company. Now the most important aspect is to obtain the tax-free bikes. For this your company would issue you a voucher. You need to show it to a local participating bicycle shop and redeem the voucher.

Tags: bicycle, bicycle scheme, Bike to Work