A UK government programme called cycle to work encourages workers to commute by bicycle rather than use their car. This programme offers employers and employees tax and National Insurance savings in addition to several other financial advantages, as discussed below:
Tax and National Insurance savings
Employers can buy bicycles and equipment worth up to £1000 for their employees under the cycle to work programme without paying taxes or National Insurance contributions. Because of this, the programme is a desirable choice for businesses wishing to reduce their payroll expenses.
Employees can also benefit from tax savings when they repay the bicycle’s cost in monthly instalments from their wage without paying any tax or National Insurance contributions.
Cost savings for employers
Employers can profit from reduced parking, fuel, and maintenance costs when their employees choose to cycle rather than drive, in addition to the financial advantages of lower tax and National Insurance contributions. As a result, businesses may eventually experience significant cost reductions as a result of this.
Lower travel expenses
Compared to driving or using public transit, cycling to work is a significantly more affordable means of transportation. Employees can save money on gas, parking, and transportation costs by cycling to work. Over time, this can save a lot of money.
Local governments may offer bike sheds for free or at a discount, with funds set aside to promote cycling.
Health benefits for employees
Regular riding has health benefits and financial advantages in the cycle-to-work programme. Cycling is a fantastic exercise that enhances general well-being, lowers stress levels, and improves cardiovascular health. Frequent cycling can also assist in reducing sick leave, which can help businesses save even more money.
Employer branding, recruitment, and employee welfare
Cycling to work benefits corporate branding and may increase your appeal to prospective hires as one of the incentives you offer employees. It exhibits concern for the welfare of a company’s workforce.
Cutting down on commuting times
Traffic congestion and the time spent stuck in it are two of the most annoying aspects of travelling to and from work, especially after a long day at the office. This is especially true when there are delays caused by accidents or roadworks!
Cycling to work is a sustainable mode of transport that reduces carbon emissions and traffic congestion. Employers encouraging cycling to work can demonstrate their commitment to corporate social responsibility and environmental sustainability.
Encourages corporate social responsibility
Promoting cycling as a mode of transportation to work shows a company’s dedication to environmental sustainability and corporate social responsibility, which can improve its reputation and draw in socially conscious workers.
Like other income sacrifice programmes, a cycle-to-work system may be a delaying factor for job changes.
In conclusion, employees and businesses can benefit financially from the cycle-to-work scheme. In addition, the programme can lower travel expenses, boost health and productivity, and create a cleaner, more sustainable environment by encouraging more people to cycle to work.