In 2019 there were an estimated 267,000 businesses in Wales, employing around 1.2 million people. The number of businesses in Wales has increased exponentially, and the rate is only set to grow further.
For businesses looking to find a way to provide additional benefits to their staff, lower their tax bill, all at no extra cost, the Cycle to Work scheme is a great option!
In essence, the scheme allows employees to buy a brand new bike and accessories to go with it up to the value of £1000. They pay for their new bike through ‘salary sacrifice.’ So how does this scheme benefit employers?
Lower National Insurance Contributions
The biggest financial benefit for businesses taking part in the Cycle to Work scheme is through lowered National Insurance Contributions.
National Insurance Contributions (NIC’s) are paid by employers based on the amount of money that is earned. Every employee earning over £183 per week must pay National Insurance.
The way that the scheme is able to lower NIC’s is through salary sacrifice.
Usually, if an employee wanted to buy a new bike, then it would work like this:
- They earn their salary.
- They are paid their salary, minus tax and National Insurance Contributions.
- They use their salary to buy a new bike.
With the Cycle to Work scheme, the bike is paid for through salary sacrifice. So:
- They earn their salary.
- Monthly payment towards the bike is taken pre-tax and National Insurance.
- They are paid their salary, minus tax and National Insurance Contributions. The NIC’s are lower because the base level of salary was their salary minus the bike payment.
You don’t pay to join
Your business can join cycle to work South Wales simply by getting in touch with Cycle Solutions. They will take care of everything regarding setting up the scheme, and they will even help your employees to choose the best bike for them and give them hints and tips on maintenance and safety. There is nothing to pay for the employer to be part of the scheme.
A healthier workforce
Encouraging your workforce to take up cycling to work will help to ease traffic congestion and parking hassle! It will also help make your workforce healthier, which means a greater wellbeing and a more productive team.
Some of the health benefits of cycling are:
- It’s a low impact workout, so if you are a person who has problems with joints or has bad knees or ankles, cycling is a great way to get a workout without risking injuring yourself.
- It builds muscle tone. Cycling is resistance based, which means that you will soon find that your quads, glutes, and calves are much stronger and looking nice and toned.
- Cycling is a great way to gradually increase your stamina and capacity for aerobic exercise.
- With regular cycling, you will find that your cardiovascular health improves, as does the health of your joints.
- Cycling can help to improve wellbeing. Regular exercise releases endorphins, which help regulate mood and means that you are regularly getting fresh air and sunshine, both of which are essential to good mental health. A happy workforce is much less likely to take time off.