cycle to work schemeEmployers are being reminded of the benefits to their staff and to their business of introducing a cycle to work scheme ahead of Bike Week 2017.

HR Team Director, Breda Cullen, said a bike scheme is a great way for businesses to cut travel costs and carbon footprints while nurturing happier and healthier workforces.

“Research shows that employees who cycle to work are fitter, happier and take fewer days off,“ she said.

Bike Week 2017 runs from June 10th to 18th.

It encourages people to rethink their everyday journeys and switch to cycling as the most convenient way to travel.

HMRC’s Cycle to Work scheme offers a tax-break for employers to provide bikes for their staff.

It operates across the UK and works via a salary sacrifice arrangement – the employer buys the bicycle and recovers the cost from the employee’s salary over an agreed period.

At the end of the scheme (usually 12 or 18 months) the employee can return the bicycle or can arrange to buy it outright from the employer.

A 2016 report by the Institute of Employment Studies revealed such initiatives were worth £72m per year to the UK economy by improving employee fitness and reducing absenteeism.

Ms Cullen continued: “Overall the benefits of the scheme are clearly obvious. For employees, cycling is a great way to get fit and cut travel costs, and even avail of tax reductions in the hire of the bike.

“Financially the employer can reduce an employee’s gross salary, replacing this with a non-cash benefit in the bicycle. The company’s impact on the environment is also minimised while travel expenditure is cut and the workforce becomes healthier, happier and, as a result, more productive.

“Transport charity Sustrans studies show that employee turnover can be reduced by up to 13 per cent following the introduction of a cycling scheme in the workplace. The research further suggests that employees who walk or cycle to work take 25 per cent fewer sick days.”

More information on the Cycle to Work Scheme is available online at www.gov.uk/government/publications/cycle-to-work-scheme-implementation-guidance

HR Team can help with all aspects of employment law advice, including how to devise and implement the right employee incentive scheme for your business. More info online at
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