The Work Cycle Plan explained: A tax-exempt method for acquiring a new bicycle
In the UK, the Cycle to Work scheme has been a popular initiative for promoting sustainable commuting for a quarter of a century. Last year, the Association of Cycle Traders (ACT) and the Cycle to Work Alliance joined forces to celebrate this milestone and work towards improving the scheme for all involved.
The scheme, however, has some eligibility criteria. Self-employed individuals are not eligible for the Cycle to Work scheme directly. Yet, a bike can be an allowable business expense for self-employed individuals who use it as their company vehicle.
Employers, on the other hand, span a wide range. From the Civil Service to private companies like Condé Nast, various businesses and public sector organizations in the UK offer the Cycle to Work Scheme as an employee benefit. In essence, any employer with a PAYE scheme in the UK can extend this benefit to their employees.
Popular providers for the scheme include Cycle Scheme, Bike2Work Scheme, and Green Commute Initiative.
One of the key aims of the ACT and the Cycle to Work Alliance is to unlock the scheme for those on low incomes, National Minimum Wage, and the self-employed to ensure equitable access to cycling. Local and independent bike shops are one of the best places to use Cycle to Work scheme vouchers as they can help choose the best bike for your needs and provide ongoing servicing.
Unfortunately, some bike shops are finding it difficult to make money from the scheme due to high commission rates from certain providers. Gogeta, endorsed by the ACT, stands out as it only takes a 3% commission.
The ambitions of the ACT and the Cycle to Work Alliance are to make cycling even more equitable and result in more people benefiting from the scheme. They also aim to simplify and minimize administrative barriers, making it easy and attractive for organizations to offer and employees to utilize the scheme.
As we move forward, the Cycle to Work scheme continues to evolve, striving to make cycling a more accessible and attractive option for commuters across the UK.
