Cycle to Work Scheme
The Government has designed the Cycle to Work Scheme to help and encourage people to cycle to and from work
To promote healthier journeys to work and reduce environmental pollution, the 1999 Finance Act introduced an annual tax exemption, which allows employers to loan cycles and cyclists' safety equipment to employees as a tax-free benefit.
The exemption was one of a series of measures introduced under the Government's Green Transport Plan. The following guidelines clarify how organisations can take advantage of the exemption to implement a Cycle to Work scheme that encourages employees to cycle to work and allows employers to reap the benefits of a healthier workforce.
The tax exemption refers to cycles and cyclists' safety equipment loaned to employees by employers. However, where salary sacrifice arrangements are used, Cycle to Work schemes must be regulated hire agreements between the employer and the employee. The terms 'hire' and 'loan' are therefore both used in these guidelines.
For more information on how organisations can take advantage of the exemption to implement a Cycle to Work scheme, that encourages employees to cycle to work and allows employers to reap the benefits of a healthier workforce visit the Department for Transport website (opens new window)