Cycling to work and back saves just under half kilo of CO² per mile and employees are being encouraged to take to the pedals through Bike-to-work scheme.

ruralnet|uk employee David Ellis has just signed up to the scheme enabling this keen cyclist to buy a brand new bike through ruralnet|uk tax free.

Bike-to-work is administered free of charge by Cyclescheme Ltd and under Inland Revenue rules, the company is able to buy the bike on behalf of the employee. The employee is then able to use the bike for a 12 month period, in exchange for a monthly deduction from salary equivalent to 1/12th of the purchase price. What makes the scheme so attractive is that the payment is taken from salary BEFORE tax AND the price is WITHOUT VAT. At the end of the 12 month period, you are then able to buy the bike from the company for a nominal sum (typically 5% of the purchase price).

If you’re interested in buying a bike through the scheme, the first step would be to take a look at these information leaflets:

Cycle Scheme Flowchart

Cycle Scheme FAQ’s

Happy cycling!