Cycle to Work Scheme Northern Ireland - CycleScheme Belfast Info

What is the Cycle to Work Scheme?

The Cycle to Work Scheme is a Government tax exemption initiative brought in to promote cycling as a healthier option for commuting to work and reduce environmental pollution. 

The scheme works by allowing an employer to loan a bike (plus some accessories, lights, helmets etc) to their employees as a tax free benefit.  

At the end of the loan period, the employer can offer ownership of the bike to the employee, usually for no fee!

Strictly speaking there is no limit to the value of equipment that can be purchased, however the Office of Fair Trading (OFT) have said that the relevant group consumer credit license will cover schemes up to a value of £1,000, to go beyond this an additional credit license is required. 

So, how does it work?

The exemption removes the tax that would otherwise have been paid on the bike (and equipment) as long as two conditions are met.

       Ownership of the equipment is not transferred to the employee during the loan period

       Employees use the bike/equipment mainly for qualifying journeys (ie from home to work!) 

How do I take part?

There are many ways that an employer can offer the scheme to their employees. Some big organisations do things in house, others use providers such as www.cyclesheme.co.uk.

Usually its a good idea to speak to your employer, usually they will have done it before!

If in doubt, don't hesitate to email us here and we can talk you through how to get it set up

For more information, consult the direct.gov page here