March 27, 2015

Bike2Work Salary Sacrifice Scheme

Bike2work is a salary sacrifice scheme – a scheme that involves agreement between the employee and the employer whereby part of the employee’s pay is given up so that the employer can provide a particular service, in this case a bicycle. But why therefore should you agree to a service such as Bike2work?

By signing up to a salary sacrifice scheme such as this, you as an employee will ultimately save money on the equipment provided. For starters, this scheme is exempt of tax payments, so as an employee, the equipment provided to you will not incur any tax when it is deducted from your wage. Furthermore, payment is to be taken in either monthly or weekly instalments which are interest free – so you know exactly how much money will be deducted each time.

The way this salary sacrifice scheme works is by the employer making an initial investment in the equipment on the behalf of the employee. The employer covers the cost of the equipment (up to £1000) and through the employee’s gross pay, a sum is deducted. This saves up to 42% in tax (if you are a high rate payer), and employers can typically save up to 13.8% of the salary sacrifice amount!

The bike belongs to the employer throughout the repayment process and even if employment ends for your employee, the remaining amount to be paid is deducted from the net pay when employment is terminated. The bike becomes a taxable benefit in this instance.

Ultimately the situation is a win-win for both the employer and the employee. Don’t let the terminology of ‘salary sacrifice’ put you off – register today to start the journey to a healthier and fun way to get to and from work!

If you still have any questions, consult our FAQ’s section or call us on 0845 5279273 and we will be happy to help!


By Aimee Whitehill
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  • Testimonials

    Legrand-bike-to-work

    Bike 2 work scheme has proved to be very popular with our employees. The administration is first class and any queries are resolved promptly. We believe the scheme will be of great benefit to our employees in saving money and improving fitness, whilst being in full accordance with Legrand's environmental policy.

    Peter Bedall - Legrand Electric Ltd
    expeditors-bike-to-work

    We have been with the Bike 2 Work Scheme for over a year and have a good number of our staff obtaining bikes through the scheme. Bike 2 Work offer a high level of service and are efficient in getting the contracts and vouchers sent out. Emails sent regarding questions or queries are always responded to speedily and the Bike 2 Work employers are very knowledgeable on the scheme.

    Wendy Peaks - Expeditors
    Hamburg-bike-to-work

    We have been very impressed with the speedy and professional response we have had since joining your scheme. We have found the contacts we speak to be more than helpful and very pleasant in their manner.

    Anne Jackson - Hamburg Süd
    Rathbone-Perception-bike-to-work

    I only heard about Bike 2 Work Scheme when I visited my local cycle shop. It was great to hear that the government actually had a scheme in place which made cycling cost effective for the employee, whilst promoting a healthier lifestyle. Setting up the scheme was extremely easy, they made sure that we had everything that we required and was always on standby to answer any questions. I would happily recommend the Bike 2 Work Scheme to any employer.  

    Tom Watts - RPI Media
    Promart-bike-to-work

    One of the things that attracted us to Bike 2 Work Scheme was the number of cycle shops available enabling our employees to access one near them, which appears to have encouraged take up of the scheme. Having circulated the leaflets provided, there has been a lot of interest once people could see how easy and financially advantageous it was. All our dealings with the scheme have been very professionally handled, all our queries answered, and paperwork dealt with speedily. We would recommend Bike 2 Work to any employer.

    Peter Langton
    Aldi-bike-to-work

    ALDI would recommend Bike 2 Work Scheme to any employer. We have found the service provided by the team at Bike 2 Work Scheme to be professional, speedy and friendly. A number of our staff have already purchased bikes through the scheme since our registration 5 months ago, and we predict many more will take advantage of this salary sacrifice in the upcoming months

    Kez Ruffles
    Bright-Purple-bike-to-work

    A number of my team had been suggesting they were keen to get on their bike, get fit and try to get out of using public transport and mentioned the Bike2Work scheme. I contacted the team at Bike2Work and they made it very simple for Bright Purple to get engaged, explaining everything required of us to get going. As a company we are keen to support green issues and want to do our bit for the environment, so getting the team on 2 wheels is a good start. Thank you Bike2Work - great idea.

    Nick Price
    Abbey-bike-to-work

    I was given the task of getting our company Abbey Logistics Group on the Bike 2 Work Scheme, I looked around and researched a number of schemes but thought that the Bike 2 Work Scheme was the best. I still feel I made the correct choice for a number of reasons. The amount of partner shops I found was fantastic and the speedy response from the scheme is second to none just to name a couple. May I take a moment to say a big thank you to the Bike 2 Work Scheme for helping our company to a greener future.

    Alan Sutton