Cycle To Work Schemes

To promote healthier journeys to work and to reduce environmental pollution, the 1999 Finance Act introduced an annual tax exemption, which allows employers to loan cycles and cyclists' safety equipment to employees as a tax-free benefit. The exemption was one of a series of measures introduced under the Government's Green Transport Plan.

Torbay businesses are taking up the tax advantages of such schemes and are finding their employees are reaping the health and financial benefits of a cycle to work scheme.

One such company is Riviera Desserts, based on the Yalberton Industrial Estate. Driven by a keen cyclist in managing director Hamish Renton, the company has set up a cycle scheme that has resulted in more than fifty bikes being purchased by employees. The company has also negotiated a separate 10% discount for their staff through Colin Lewis cycles in Paignton and is investing £10,000 on a new cycle shelter.

Cycle To Work Schemes give massive tax advantages to the employee that result in a 37 to 52% saving on the cost of a bike, depending on your rate of income tax. There is no limit to the size of the company that can adopt such schemes and guidance is available via the Department for Transport Website.

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