Pollution is shooting up in the UK, and people are experiencing fatality of this with each coming day. With a concern for this situation, the government of the UK has come up with cycling to work schemes. Though this is a common scenario in the Netherlands and other such European countries. Thus, the UK government, together with the citizens, have pledged to clean up the surroundings, right from the roads to the atmosphere by using the fuel-efficient and environment-friendly transportation system – the bicycle system.
The governments have put in healthy efforts and is contributing a lot in this initiative. The government also provides certain incentives to employees who cycle to work under cycle to work scheme. Under these schemes, the employers could loan the bicycles to their employees who also receive tax benefits over the amounts.
This scheme cannot work for the self-employed people. They can't even claim for mileage on their business travel using a cycle. A limited company can avail this scheme no matter the number of staff it has. The rules for this scheme are very broad. They are as follows:
More details on the scheme can be found here.
Salary sacrifice is the scheme where an employee gives a part of their pre-tax salary in return for the benefits availed from the employer. Here the benefit is in the form of a bike loan. How does the employee avail tax benefits while using this scheme?
If you are using your personal bicycle for the business travels, you can claim mileage allowance relief. The rate that can be claimed is 20p/ business mile for the bicycles.
Get yourself a cycle to work and contribute to a healthy environment of the country. These initiatives by the UK government are not only beneficial for the employees, but they also benefit the employers and thus the whole company. But the main aim of the government is a pollution-free UK.
So, take the maximum output from this scheme and if you are not eligible for the scheme, contact us at DNS Umbrella. Contact us to get your tax free bicycle now under the cycle for work scheme