To encourage people to drop the car and start cycling to work, the government created a little publicised incentive in 1999 to encourage employers to help their employees acquire tax-free bikes. In 2005 this scheme was re-branded as CYCLE TO WORK.

Under the Cycle to Work scheme, as part of the government's green travel plan, you can get a tax-free bike, use it to commute, keep fit and do you bit for the environment all in one fell swoop.

Employers benefit from fitter, more punctual, more wide-awake staff. Employees benefit from better health and better bikes because their money goes further. With a budget of, say £400, an employee in the high tax-band can now afford a bike, plus accessories, worth nearly £800.

To take advantage of the scheme you have to be in full time employment and on PAYE and your boss must have the company registered to qualify for the tax breaks being offered.

So How Does It Work?

First of all, get your employer to sign up for the scheme. You then choose a bike from an approved supplier, such as us here at Mountain High. The bike is then bought by your employer who reclaims the VAT * You then take delivery of the bike for your exclusive use - provided you use it for qualifying journeys, i.e. commuting to work.

*The VAT free price is then deducted from your salary by equal instalments over a period of time (typically 12-18 months), but as you don’t pay Tax or National Insurance on the income you forego, this will give you further savings.

After the period of salary sacrifice, the employer may give you the option to purchase the bike at a ‘fair market price’, though this depends on the period you have had the cycle loaned to you.

This ‘fair market price’ is usually five percent of the original package price. So, after a 18 month ‘loan’ for a bike package costing £1000, the employee takes full ownership for just fifty pounds.

The actual discount available to an employee will be based upon their own personal tax circumstances (higher tax payers get larger discounts) and whether their employer can recover all the VAT.

So What Next?

So, if this sounds to good an opportunity to miss, then we recommend that you take a look at www.cyclescheme.co.uk. Here you will find all the information you’ll need to get you and your employer signed up to the Cycle To Work scheme. Remember, by purchasing your bike through us here at Mountain High, you not only get access to some incredible bike brands with potential great savings, but superb after sales service and care for your bike that you’d expect from a quality, established store catering for all your cycling needs.