Powabyke Salary Sacrifice

TAKE THE GREEN ROUTE TO A HALF-PRICE BIKE

In support of its Green Travel Plan, the UK Government produced a tax break in the 1999 Finance Act that allowed employers to loan bikes to their staff as a tax-free benefit. To capitalise on this initiative, Salary Sacrifice schemes were set up, allowing employees to benefit from having a bike at a vastly reduced price. Click on the downloads to see how Powabyke presents its scheme.

The beauty of Salary Sacrifice is that everybody wins. In a nutshell, here's how it works: 

1. The employer purchases the bike for their employee, saving on National Insurance and VAT.  
2. The bike is loaned to the employee, who pays off this reduced cost over a period of time directly from their salary and without that portion of their wage packet being impacted by income tax and National Insurance.
3. At the end of the agreed term - usually 18 months - the user will have bought a bike at approximately half the normal retail price.

• Encourages more people to use bikes as an environmentally-friendly form of alternative transport and leisure activity
• Helps reduce traffic, particularly at peak commuter times for travelling to and from work, between sites or to/from the station
• Solves car parking problems
• Helps attract, retain and motivate employees
• Reduces absenteeism
• Encourages a healthier lifestyle, increasing productivity of workforce

Downloads

• Salary Sacrifice Brochure
  
• Draft Contract
  
• Checklist and FAQs