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