The Benefits Of Signing Up To A Cycle To Work Scheme

Times are tough at the moment, so benefits that don’t cost the employer whilst helping the employee are becoming ever more popular. One of the top employee benefits is a cycle to work scheme, promoting healthier and more sustainable commuting options, while offering financial benefits to employees.

This government-supported, salary sacrifice initiative is designed to encourage more people to cycle to work, which comes with many benefits. It’s also a tax-efficient way for employees to purchase bicycles and related equipment. Better still, it’s easy to implement and is free for both businesses and employees to join the scheme.

So, why should a company and its employees consider a cycle to work scheme?

Why Cycle to Work is Such a Popular Scheme

The main reasons for the popularity of these schemes are ease of implementation, health benefits and financial savings. Unsurprisingly, the post pandemic era continues to show a trend towards active lifestyles and the adoption of healthier habits. Cycling is a great way to achieve this, and many employers are now offering the cycle to work scheme as a benefit to help staff purchase bikes and cycling accessories at a reduced cost.

The scheme offers significant financial savings for both employers and employees. By purchasing bikes, or electric bikes, and equipment through a cycle to work scheme, such as Cyclescheme, employees can save up to 39% on the cost of their bike and accessories at over 2,600 UK retailers.

Employers can also save on National Insurance contributions, as the cost of the benefit is deducted from the employee’s salary before tax and NI contributions are calculated. What’s more, any size of business can adopt the scheme, as long as employees are paid via PAYE.

Also, being part of the scheme doesn’t mean you have to cycle to work every day. The scheme is there to encourage work commuting as a mental and physical health benefit, but the bike is also for employees to enjoy during their free time too. There’s the flexibility to cycle to work some or most of the time and then cycle for pleasure at the weekends, so employees can choose a bike that perfectly fits all their needs.

Cyclescheme is easy to implement and manage as the administrative tasks are taken care of on behalf of the employer. This means businesses do not need to dedicate significant time or resources to the implementation, making it an attractive option for companies of all sizes.

How Easy is the Scheme to Implement?

In a cycle to work scheme, an employer partners with a provider that specialises in administering these schemes. BHN Extra’s Cyclescheme takes all the stress out of the set up, whilst facilitating the process and handling all the administrative aspects.

Here’s a checklist of how it works:

1. Eligibility

All employees who receive a regular salary and are subject to income tax and National Insurance contributions are eligible to participate in the scheme. However, it’s worth checking if some schemes have additional eligibility criteria set by the employer.

2. Selection

The company chooses a maximum limit that employees can request to spend. Then the employees simply choose the bicycle and cycling equipment they want from an approved retailer or a list of suppliers provided by the scheme.

3. Salary Sacrifice

Each month, usually for a 12 to 18 month period, a portion of the selected bicycle and equipment cost is deducted from the employee’s gross, pre-tax salary through a salary sacrifice arrangement, resulting in income tax and National Insurance savings.

4. Ownership Options

At the end of the period, the employee has the option to take ownership of the bicycle by paying a nominal amount. Alternatively, the employee can enter into an agreement to extend the hire period or return the bicycle to the scheme provider.

It’s important to note that maintenance and insurance is down to the employee to organise and pay, although some schemes offer help and support for this.

How Cycling to Work Scheme Brings Benefits to the Workplace

Apart from the above-mentioned financial benefits, employees who cycle to work, instead of driving a car or motorbike, are helping reduce congestion and emissions in their local area. Importantly, employees who engage in active travel, like cycling, are happier, more productive in the workplace, and take fewer sick days compared to their car driving colleagues.

Let’s see how employees benefit from getting in the saddle for their work commute.

1. Increased Energy and Alertness

Cycling to work can boost energy levels and enhance mental alertness. Engaging in physical activity before work stimulates blood flow, oxygenates the brain, and releases endorphins, leading to improved focus and cognitive function throughout the day. This can contribute to increased work productivity and efficiency in the workplace; employees will arrive at work raring to go.

2. Stress Reduction

Cycling is a well-known stress reducer. Regular exercise helps reduce stress levels by releasing feel-good hormones and reducing the production of stress hormones. By starting or ending the day with a bike commute, employees may experience lower stress levels, enabling them to approach their work with a clearer and more focused mindset. In some cases, cycling to work can help individuals better manage their journey time and reduce stress associated with commuting.

3. Improved Mental Health

Cycling is a form of aerobic exercise that has been linked to improved mental health, as regular physical activity, including cycling, has been shown to reduce symptoms of depression and anxiety. When employees have better mental wellbeing, they are more likely to be engaged, motivated, and productive in their work.

4. Enhanced Physical Fitness

If you are cycling to work regularly, this consistent form of exercise will be contributing to improved cardiovascular health, increased stamina, and overall physical fitness. Better physical fitness can result in higher energy levels, improved concentration, and reduced fatigue, all of which can positively impact productivity at work and result in fewer sick days.

5. Choose the right pedal partner

With over 30 years’ experience helping companies choose the right benefits for their employees, BHN Extras’s Cyclescheme gets more adults in the UK cycling into work than any other scheme provider. So, contact the experts if you are considering a cycle to work scheme that will boost employees’ physical and mental wellbeing, whilst reaping the financial benefits.