With Cycle to Work Day upon us, it’s a great opportunity for businesses to reflect on how the scheme benefits both employees and employers alike.
The Cycle to Work Scheme is a government-backed initiative that allows employees to obtain bicycles and cycling accessories tax-efficiently.
It operates through salary sacrifice, where employees give up part of their gross salary in exchange for the hire of a bike.
Because the deduction is made before tax and National Insurance, employees can typically save between 25 per cent and 39 per cent on the cost of a new bike and kit.
Benefits for employees
For employees, the headline advantage is cost saving. Spreading the cost over 12 months without paying interest makes the scheme accessible for many.
However, beyond the numbers, cycling to work offers tangible lifestyle improvements from improved physical and mental health to a more predictable and often faster commute (especially in urban areas).
Let’s not forget the environmental impact. For those wanting to reduce their carbon footprint, switching four wheels for two is one of the most effective personal choices available.
Jim Carratt of Nicholsons has been cycling to work for 25 years. He commented “As we own 1 car, I decided to cycle to work, around a three-mile journey. Whilst there isn’t a cycle path, I’ve gained a lot of road confidence from regularly undertaking this route.”
Jim is not just a fair-weather cyclist and can often be seen out riding home in the rain, ice or snow. “I enjoy the ride even through the colder wintery months. I’ve fallen off the bike in both snow and ice, and regularly get soaked in the rain.
I’ve also had my fair share of punctures but have carried on regardless, as the benefits far outweigh the downsides.” Jim opined. Continuing, he said “The firm provided a cycle shelter, shower and changing facilities, and we also have a heated airer to dry clothes, which is a great help.”
Financially, compared to using a car or public transport, there are great incentives, but one of the real gains is how cycling improves your fitness, balance and coordination.
Just a 20-minute ride either end of the day helps to keep your weight down, burns calories and even strengthens muscles.
Jim has been able to complete the 100-mile Castle to coast cycling challenge on numerous occasions completing his last attempt in 2023 at the ripe old age of 58.
Beyond the physical benefits, Jim has also noticed a real improvement in his mental well-being, commenting that it feels as if stress and anxiety are reduced and arriving at work more alert and energised for your daily routine.
It is a more peaceful start to the day avoiding the traffic or crowded buses although you do need to be more aware of electric cars – you can’t hear them coming!
“Cycling to work in a morning only takes around five minutes longer than being in the bus or car with traffic the way it is and to me it is more fun.” He commented.
With a nod to the environmental benefits, he mentioned, “Bikes don’t produce carbon dioxide or pollutants. Vehicles, on the other hand, emit nearly three-quarters of all air pollution and over 20 per cent of CO₂ emissions.
Biking releases none. CO₂ emissions would be cut by over 40,000 tonnes each week (enough to heat over 17,000 houses) if all commutes under five miles were made by bike instead of car.
Give the bike a go – few go back to the car once they get into cycling to work!
Benefits for employers
Employers such as Nicholsons also stand to gain. By offering the scheme, businesses can save up to 15 per cent in National Insurance contributions on the amount sacrificed.
It also demonstrates a commitment to employee wellbeing and sustainability values that clients and potential recruits increasingly look for.
Workplaces that encourage cycling often see reduced absenteeism, higher productivity, and boosted morale. Additionally, with no cost to set up through most providers, the scheme is an easy way to add value to an employee benefits package.
Get pedalling
Whether you’re a small rural business or an urban charity, offering the Cycle to Work Scheme can be a simple yet powerful way to invest in your team.
As we celebrate Cycle to Work Day, it’s worth considering how two wheels could bring big benefits for health, for the planet, and for the bottom line.
Want further guidance on the benefits of the Cycle to Work Scheme? Get in touch with our payroll team today by emailing: payroll@nicholsonsca.co.uk