Cycle to Work Scheme supported by the UK Government’s Office of Tax Simplification
Posted - September 9, 2011
The Treasury based think-tank has recommended that the Government preserve the Cycle to Work Scheme.
The Cycle to Work Scheme, which offers savings of up to 56% on bikes, is a tax-free Government initiative that aims to get more people cycling to work. It is considered vital by the Office, and is expected to form part of the 2011 budget.
The Office of Tax Simplification, created in July 2010 as an independent advisory board for simplifying the UK tax system, has advised the Chancellor of the Exchequer that the scheme should be kept as it has an important role in helping people lead healthier lives.
“The original policy remains valid, there is little administration on behalf of the employers or employees and the scheme is well used. We recommend that this relief be retained."
The scheme has had a positive effect on encouraging more people to take up cycling, with products available to suit the novice beginner as well as the experienced cyclist.
In a recent Cycle to Work Alliance report, 87% of Cycle to Work Scheme participants said they had noticed a significant improvement in their health since taking up the scheme. Businesses were also keen to praise the scheme, with 97% saying they think the scheme is important or very important in encouraging a healthy workforce.
Participants also highlighted the environmental benefit of cycling to work, with 64% of respondents saying they have reduced the distance they drive each week by up to 50 miles.
Cycle Solutions welcomed the announcement, stating that this is a positive sign for the future of the scheme. Director Steve Edgell says:
“We welcome the endorsement of the scheme by the Office of Tax Simplification. We hope that this will provide confidence to those public and private sector organisations who are considering adopting the Cycle to Work Scheme as an employee benefit.”
“At a time when we are all being forced to tighten the purse strings, the Cycle to Work Scheme provides employees with an ideal opportunity to reduce the cost of their daily commute. By building cycling in to their daily routine, commuters will not only benefit from reduced travel costs but also from the health and environmental benefits that regular cycling can provide.”
As a leading provider for the Cycle to Work Scheme, Cycle Solutions can offer a scheme to suit the requirements of any organisation. We offer end-to-end management of the scheme plus high quality marketing such as scheme brochures, posters and a bespoke website, all free of charge. We can also advise you regarding your options for end of scheme management. For more information please contact us.