by sales
9. March 2010 00:56
The government have created a tax break for all UK taxpayers allowing huge savings on a new bike to encourage more employees to cycle to and from work. Paid through an agreed salary sacrifice with the company (over 12 months), the cost of this equipment is free from Income Tax, National Insurance and VAT, giving a tremendous discount on the purchase price.
The scheme is available to all employees who have completed their probationary period (although there are specific rules relating to the National Minimum Wage and for employees aged 16-17 years old). Employees can save around 35% off the suggested retail price. As the company buys the bike we can immediately recover the VAT paid. The company then hires the bike to you, and this is done by way of a salary sacrifice. This means that you contract to reduce your monthly salary by an agreed amount each month in exchange for renting the bike. By reducing your salary you lower the Tax and National Insurance you would have paid thus making a further saving.
In less than a week after the launch, Ansaback already have 4 people signed up to this scheme, which is great news. This is a saving to them, a greener footprint and healthier employees!
