Cycle2Work using a Roe Valley Cycles bicycle and cycle safety equipment, via your employer. Save Income Tax, National Insurance and potentially VAT contribution of up to 50% of the value of the equipment.
Benefits To Employees
The employee incurs no Income Tax and National Insurance on this benefit. Where there is a direct business benefit from implementing Cycle2Work (for example as part of a Green Transport Plan or improving employee health/attendance which our schemes all deliver) VAT may be reclaimed and passed on to staff. In total, combined savings on Income Tax, National Insurance and potentially VAT contributions of up to 50% of the value of the bicycle and cycle safety equipment can be achieved.
Benefits To Employers
Running a Cycle2Work scheme incurs no direct costs for employers who also avoid the NI contribution of 12.8% on the value salary sacrificed and achieve the benefits of a green transport or environmental compliance plan. Both parties benefit from the employee being fitter and healthier, and the scheme contributes to a recruitment and retention programme and helps combat absenteeism.
Roe Valley Cycles Role
The professionally managed service includes account management for the employer and expertise on the complex legislation as well as informed advice on product selection.
How the scheme works…
- The employer can administer the scheme, or Roe Valley Cycles can introduce
an administration service.
- The employee will be given a period of time in which to choose a bike.
- Roe Valley Cycles have a large choice of bicycles and accessories.
- Choose a bike either in store or online at
- Then choose a letter of collection (LoC) value that is nearest to the value of the bike.
LoCs are available from £100 in £50 increments. The full value of the LoC must be spent on a bicycle in store to achieve the saving.
- Advise the employer or administrator of the LoC value required.
- Once the administration process is complete a voucher will be issued.
- The scheme is financed by the employer, this can be made cash
neutral. The employee pays back their LoC value monthly from
their salary.
- The savings come from tax benefits associated with the scheme.
We can provide you with further information about the scheme
