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Clarifying Certain Details Regarding the Cycle to Work Scheme

  • By Daniel Smith
  • Published 04/23/2012

If you are looking for an easy means of transport to commute between office and home, you may enquire whether your employer is participating in the cycle to work scheme HMRC. This scheme, an integral part of the Green Transport Initiative of the Government, aims at encouraging employers and employees to use bicycles for work-related journeys.

If your employer does participate in this scheme, you may be able to obtain a bicycle and safety gear at a significant reduction of the price. The scheme is available by way of a salary sacri?ce agreement in which you pay for it; tax free, from 1 to 12 months. It is better to clarify certain things before you get a bicycle and cycling equipment under this scheme.

Who is eligible for this scheme? If your employer is a participant in the cycle to work scheme, and if you have been in their employment for a year or more, in all probability you would be eligible for the scheme. However, it is better to enquire about this from the HR or administrative department beforehand.

For which journeys can you use the bicycle? There are no mileage specifications regarding this. However, the scheme requires you to use the bicycle for work purposes for more than 50% of the total use. This includes commute to and from work, commute from one place of work to another and commute to the train station near your home to go to work.

Who is responsible for the insurance of the bicycle and the safety gear? This, again, differs from one employer to another. However, in most cases, you have to pay for the insurance of the bicycle to cover for theft or third party liability. Check out with your employer to get an idea about this detail.

Who pays for the necessary maintenance? It is a good idea to enquire about this in advance to ensure that there are no issues related to this. Most employers make it mandatory for the employee using the bicycle and safety equipment to pay for any necessary repair and maintenance.

What happens after the end of the hire period? Getting a bike for work as per this scheme proves to be advantageous for all employees. However, one question is – do you own the bicycle when the hire period ends? On the basis of a signed agreement in which they accept the bicycle equipment and a reduced salary in the make up of their remuneration package, the employee owns the bicycle. Ownership will similarly transfer to the employee if the employer purchases the bicycle for the employee.

What if you leave or are made to leave your job before the end of the hire period? In most cases, the employer creates a no-cancellation agreement for this. If this is the case, and you leave or are made to leave your job, you may have to pay the rent from the bicycle and the safety equipment from your final salary.

Author Bio

Daniel Smith is an experienced supplier participating in the cycle to work scheme. He provides tips and suggestions for employers and employees participating in the government bike to work scheme. If you were looking for more details regarding cyclescheme, he suggests you to visit http://www.biketowork.co.uk/.

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