How Does The Bike To Work UK Scheme Work?

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How Does The Bike To Work UK Scheme Work?
Salary Sacrifice
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There are still some salary sacrifice schemes
available today, and one of the best options is
the bike to work UK scheme.
Under the bike to work scheme, employees can save
up to 42 on the cost of a new bike as they wont
need to pay National Insurance and income tax.
Here, the employee hires a bike through salary
sacrifice. Once the hire period is over, the
employee can buy the bike from their employer or
simply return it. This type of employee benefit
scheme doesnt come from net salary, but from
gross salary.
How Does The Bike To Work UK Scheme Work?
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Lets walk you through the process entailed when
it comes to bike to work schemes. Firstly, the
employer needs to sign up to the scheme. Then,
the employee can choose a bike, and the employer
will purchase it or enter a finance arrangement.
Over the 12 months, youll pay the money back
through your salary. Once the 12-month hire
period is over, you can purchase the bike from
your employer at the Fair Market Value.
Hopefully, you now have a better understanding
regarding how the bike to work UK scheme works.
This is a scheme that offers numerous benefits
for both the employer and employee.
How Does The Bike To Work UK Scheme Work?