What is the cycle to work scheme?

Summary:

Who's eligible?

What kind of bikes and equipment are included under the scheme?

What kind of savings can employees enjoy?

How does the cycle to scheme benefit your business?

So what are you waiting for?

 


What is the cycle to work scheme?

Here at Sodexo Engage we believe that employee wellbeing is made up of three core pillars: physical, mental and financial wellbeing.

They’re all important for an engaged, productive and loyal workforce, but supporting all three can be tricky—but did you know there’s one solution that can support them all?

A cycle to work scheme does all this and more, and is one of the most popular wellbeing programmes with UK organisations.

So what is the cycle to work scheme, and how can it benefit your business?

Who's eligible?

The cycle to work scheme is open to organisations of all sizes across the public, private and voluntary sectors, but there are some criteria employees have to meet in order to be eligible:

  1. The employee must be 16 or over (note that, because of the law relating to contracts with minors, you may not wish to enter into a hire agreement with under 18s)
  2. The employee must be paid through the PAYE system
  3. The employee’s salary must be high enough to ensure it does not fall below the UK National Minimum Wage after the salary sacrifice deduction is made

Note that the government’s cycle to work scheme is not available for the self-employed or contractors.


What kind of bikes and equipment are included under the scheme?

Cycle to work schemes don’t only allow employees to purchase bicycles—they also include any ‘cycle’ defined as being ‘a bicycle, tricycle, or a cycle having four or more wheels, not being in any case a motor vehicle’. Electrically-assisted cycles can also be included.

The cycle to work scheme doesn’t stop there though. You can also purchase: 

  • Safety accessories, including helmets, lights, reflectors, mirrors and locks
  • Essential accessories, including clothing and shoes, mudguards, panniers and backpacks
  • Components and parts, including pumps, puncture repair kits, wheels and tyre sealants

Our scheme, Cycle2Work with Sodexo, is in partnership with Halfords and supported by a wide range of specialist bike dealers. This includes Halfords, Tredz, and a wide range of independent bike shops nationwide. 


What kind of savings can employees enjoy?

So, what is the government cycle to work scheme savings on offer to your employees? They’re big, and also offer lots of free extras, discounts and benefits that wouldn’t be available through a simple interest free finance agreement.

Through Cycle2Work with Sodexo your workforce could save between 33.25% and 43.25% on tax and National Insurance Contributions (NICs), with the cost simply deducted from their payslips.

Let’s take a look at an example:

Through interest free finance, a bike valued at £1,000 would cost £833.33.

That’s a decent saving, but that same bike purchased through Cycle2Work with Sodexo could cost as little as £55.70 per month over 12 months—that’s just £668.40.

Of course, this doesn’t take into account the money your staff also save in commuting costs. In fact, compared to driving to work, cycling saves more than £3,000 per year on average.

HOW does the cycle to scheme benefit your business?

The benefits of a cycle to work scheme aren’t just limited to your employees—there are a number of advantages to your business too.

NI savings

It’s not only the employee that reduces their tax bill—the business does too!

Your organisation will see savings of up to 13.8% on NICs for the employees using the scheme. Cycle to work schemes are one of the few salary sacrifice schemes that continue to offer these sorts of lucrative National Insurance savings.

Support employee wellbeing

Cycle to work schemes help employees to save money and get active, which in turn supports mental wellbeing. In this way, Cycle2Work with Sodexo supports all three pillars of employee wellbeing: physical, mental and financial.

Studies have shown how important exercise is for improving mental health, reducing anxiety, depression and negative mood by improving self-esteem and cognitive function. 

Still not convinced? Find out more about the benefits of supporting employee wellbeing.

Significant return on investment

It’s not only NIC savings on offer for organisations that implement a cycle to work scheme. Workplace health initiatives can also drive significant productivity gains, according to research by the British Heart Foundation.

They found that, for every £1 spent on programmes that support physical wellbeing, UK businesses see £4.17 ROI.

Reduce your organisation’s carbon footprint

Is your business trying to reduce its impact on the environment? Implementing a cycle to work scheme is a great way to reduce your carbon footprint.

In fact, more than 130,000 tonnes of CO2 are saved every year thanks to people cycling to work. 

So what are you waiting for?

Cycle to work schemes offer a huge range of benefits to your organisation and your employees.

However, when choosing Cycle2Work with Sodexo, in partnership with Halfords, you get more than an out-of-the-box solution. We provide a full end-to-end service, ensuring your employees can keep their bikes (if they wish to) for a fair price, and that the entire process runs smoothly.

We have decades of experience in employee engagement, and we’re best placed to work with you to ensure the cycle to work scheme is suited to your organisation and workforce.

Ready to find out more?

Get in touch with our expert team and discover what Cycle2Work with Sodexo will do for you.