Financial incentives that encourage cycling
Financial incentives to offset the costs of cycle purchases can make cycling more attractive to new or returning cyclists, while employers running such schemes may be eligible for tax and National Insurance discounts. Providing cycling mileage allowances for business trips can help even more staff to choose to cycle.
Loans and discounts
Offer incentives such as interest-free bicycle loans, discounts for bicycle purchase and preferential cycle insurance rates.
Introduce a salary sacrifice scheme for bicycle purchases.
Cycle to Work schemes
To promote healthier journeys to work and to reduce environmental pollution, the 1999 Finance Act introduced an annual tax exemption, which allows employers to loan cycles and cyclists' safety equipment to employees as a tax-free benefit.
Employees using such schemes can expect up to a 50% discount on bikes and cycling equipment while employers running them are eligible for tax exemptions.
To find out more, visit the Department for Transport's Cycle to Work webpages.
Cycle mileage allowances
Provide a cycle mileage allowance to enable financial reimbursement for staff cycling on company business.
Introducing a cycling mileage allowance also has the benefit of reinforcing the position of cycling as a recognised alternative to car use.
Currently, the Inland Revenue allows tax deductions at a rate of 20p per mile for business journeys undertaken by bike.
