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How Does The Bike To Work UK Scheme Work?
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 won’t 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 doesn’t come from net salary, but from gross salary.
Let’s 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, you’ll 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.
Click Here: teamrewards.co.uk/benefit-schemes-for-employees.html
How Does The Bike To Work UK Scheme Work?
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 won’t 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 doesn’t come from net salary, but from gross salary.
Let’s 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, you’ll 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.
Click Here: teamrewards.co.uk/benefit-schemes-for-employees.html