Traditional ideas of cycle to work schemes, with limited choice and a limit on spends, have evolved greatly since their inception in 1999. With more and more people wishing to use cleaner modes of transport and to be able to commute longer distances using a bike, one of the most popular questions facing the scheme is, “Can I get an electric bike on the cycle to work scheme?” Put simply, yes.
The Department of Transport’s publication on cycle to work schemes states that “an Electrically Assisted Pedal Cycle (EAPC) can be included under the scheme”. Coupled with many employers increasing the £1000 limit on their schemes, the electric bike market for cycle to work schemes has erupted.
What does this mean for employers?
The inclusion of electric bikes in the scheme, and their recently found accessibility, helps employers to widen the audience of their scheme users and, in turn, helps organisations reach their transport plan goals sooner.
The rules for savings do not change for electric bikes either, ensuring that employers can still generate National Insurance (NI) savings for each member on the scheme. Using a scheme such as Workplace Bikes, that is operated to you at nil cost, also sees those savings re-invested elsewhere within a company.
With a wider audience engaged in the scheme, not only through electric bikes but also the extensive range of cycles that Workplace Bikes can offer employees, the percentage of a workforce participating in more exercise will rise bringing about a boost in morale, productivity and overall employee retention.
What does this mean for employees?
When contemplating joining a scheme an employee may typically think about their fitness and the length of their commute, both of which make electric bikes appealing. Now, with many employers raising the limit above £1000, electric bikes have never been so within reach.
The raise on the £1000 limit also enables employees to purchase more than one cycle, if their employer’s scheme permits this. Thinking outside the box and having a cycle either end of a train journey sees more opportunity for cycling and faster commutes.
Of course, electric bikes are still available for £1000 or less which also sees those on lower incomes still afford the luxury of assisted cycling to work.
Employees now have a far greater choice in make, model and price which generates more excitement than seen in previous years.
How much will I save?
The example below is based on a cycle with a retail price of £1,000, with an equivalent salary sacrifice of £83.33 per month over 12 months. Your savings will depend on the price of your cycle and the amount of tax and National Insurance you normally pay.
|Tax band||Percentage saving||Reduction in your monthly net pay||Total reduction in net pay||Overall saving against retail price|
It couldn’t be easier…
Workplace Bikes will handle all day to day administration and marketing, freeing up pressures on HR departments. With excellent customer service and extensive experience with cycle to work schemes, setting up your scheme couldn’t be easier.
For more information, please contact us.