The cycles to work scheme introduced by Sainsbury
Sainsbury’s motive is to work with employees properly. The company considers good employees to be the living assets of the organization. For their safety and future backup, Sainsbury’s decided to shower them with benefits. Benefits like ticket loans, pension contributions, and administering salary sacrifice are quite popular. All these are part of the non-monetary benefits that are provided by the company. This cycles to work scheme is one such amazing benefit offered by the company. Let’s have a glance at the detailing of this scheme.
For every worker, it is important to have a balanced life. Employers want their employees to be fit and fine. Loss or breakdown of living assets can create a lot of problems for the organization and its objectives. Cycle to work scheme is a benefit that is provided to keep the employees healthy. For their Healthy lifestyle, a cycle or bike is provided to them. The scheme says that the employees can purchase a bike or cycle from the company.
In return for that, the company will give a flat 10% off to the Employees who will purchase it. Other types of equipment for bike or cycle can also be bought. If seen positively this will benefit the health and family of the employees. On the other hand, this will also be beneficial to the company indirectly. In this way, the employees can save a lot and have to pay less tax for that.
The eligibility criteria for availing this scheme
There are no eligibility criteria for availing this scheme. The only thing is the employers should start providing this scheme in their organization. Only then employees will be able to avail of this benefit of tax exemption. PAYE is the system through which the employees must be paid. The employees who want to avail this scheme or participate in it must be abiding by the criteria. This is only available in the private and public sectors. Self-employed people cannot avail of this scheme.
Types of equipments that are included in the process of tax exemption
The equipments that can be included for tax exemption are cycles and its parts. The vehicle can be a bicycle or a tricycle. But it can never be a motorcycle. This means that any vehicle that is assisted by motor or electricity is not allowed. If such is the case then the individual won’t be able to appear for this scheme.
Supply of types of equipment and its value
There is nothing constricted about the value of the equipment. People with the need for one bicycle or tricycle can avail it. On the other hand, someone can be in a need of more than one bicycle. In that case, they can be provided with such. There might be instances where an employee may require more than two bicycles. For example, an employee has to travel a long distance. There might be cases when employees need to change multiple trains to reach his home. In that case for each break, a bicycle can be provided.
However, before providing such vehicles an agreement is made. This is a hire agreement. Under this agreement, the cost of the bicycle is deducted from the salary in case they are willing to purchase it. This deduction of salary is done from the gross amount. So even after deduction, the employee will be able to save his or her tax.
Get to know about the working of this scheme
The concept of cycling to work is very healthy. Firstly the employer gives the cycle to the employee. Now daily the employee needs to report to work by cycling. This whole process is done under one agreement. At the end of the agreement, the Boss remains the owner of that equipment. The employee is given an offer of purchasing the vehicle if he wants. It is optional whether the employees want to permanently own the cycle. They are asked about it and decisions are taken accordingly.
Know the spending limits for Cycle to work scheme:
To be very specific, this cycle to work scheme operates without any limit. The main reason behind this is the different kinds of necessity depending on the employee. Some employees might need e-bikes because of the hilly area they have to cross everyday for reaching work. Some might have some physical disabilities and because of that they might need any special kind of bike. So, typically there are no limits when it comes to cycles to work scheme.
However, this depends on the economic situation of the employer as well. Typically, there is no obligation for any employer to spend more than a thousand pounds on this scheme. This is the main working of the cycle to work scheme. It is found to be very helpful to colleagues and employees. This scheme acts in a very positive way to motivate employees.