With the current cost of living crisis, we are all looking for money saving tips. A savvy way to save a whopping lump of cash is a cycle to work scheme. With petrol prices soaring and rail fares due to increase in March 2023 now is the perfect time to see if this is a viable option for you.
What is Cycle to Work?
Cycle To Work is a way to pay for a new bike through a monthly salary sacrifice. You spread the cost of the bike over monthly tax-free installments through your employer. You don’t pay tax on a bike purchased via a cycle scheme so you could save as much as 40% on the cost of a bike. The installments usually run for 12 months but with some schemes you can opt for a 4 year repayment plan.
How much can you save?
You can save up to 40% on the cost of your bike through monthly tax efficient payments.
On top of this you can save money on your regular commute.
According to confused.com the average weekly commute cost £136.00 by train and £80 by car. Imagine you spend £136 per week x 48 working weeks = £6,528. If you earned £30k a year, bought a Reilly Gradient costing £3849 (via the Green Commute Initiative cycle scheme), the total saving on the bike would be £1231.68 or 32%. Your monthly take home would be reduced by £218.11. The cost of your commute would be less than 8 quid a week for the first year and then virtually nothing when the bike is yours.
How does the Cycle to Work scheme work?
There are several different providers, all with slightly different parameters. Reilly Cycleworks accept vouchers from all providers.
The basic premise works like this –
Your employer registers with a scheme provider.
You choose the bike you want.
You can choose from any bike shop or manufacturer irrelevant on which scheme our company has chosen. Note, some employers or schemes operate a max spending limit.
Your employer pays for the bike.
You pay your employer back through monthly installments taken through payroll. These are taken before tax so you are paying less tax and NI while paying off your bike. There is no limit on the amount of times you use a cycle scheme. Once you have paid off one Reilly bike you can go ahead and sign up again and get another Reilly bike.
It’s not just about the money and the beautiful titanium bike.
Cycling is aerobic exercise which has been proved to reduces cortisol the “stress” hormone and increase endorphins the “happiness” hormone. Not to mention the fitness benefits of cycling on a regular basis.
According to the mental health charity Mind, cycling can make you feel more positive about yourself. As well as observing yourself becoming fitter, you prove to yourself that you’re up to the challenge which can result in a sense of satisfaction and self-control that helps you withstand stress better.
Let’s not forget if you ditch your car in favour of a bike then your heart, your wallet and the environment will benefit. Win Win Win.
Contact Phil or Chris if you have questions about purchasing your Reilly via a cycle scheme - What's App, 01273 694 143, email@example.com