Bike to Work Scheme

Bike to Work Scheme

The Council has run several successful Cycle to Work schemes in the past.  However, HMRC (the tax authority) has changed the guidance applying to salary sacrifice schemes, which is expected to significantly reduce the savings enjoyed by staff.

Given the reduced financial attractiveness of the scheme for staff, the Council has decided to postpone the scheme until HMRC clarify their position.

The Council will also clarify with HMRC what impact the changes will have on current and any future bike to work schemes. 

We apologise to all those members of staff, who had earmarked a bike and were looking forward to a new purchase, but we hope everyone appreciates that there is little advantage in running a scheme that does not benefit staff and that does not benefit the Council at this time.

Cycling Scotland intends raising the following 3 points with HMRC:

1. Supply a simplified criteria for ascertaining the market value of a bike.  It was widely agreed that the existing matrix makes the scheme very unattractive to employees.
2. Allow time for confidence in the scheme to return before making any more changes.  With changes to guidelines on the fair market value, and to VAT being imposed within twelve months, a great number of organisations are concerned about what future changes may be around the corner.
3. Greater responsibility is needed for communicating changes to participating businesses.  Several organisations were disappointed to have been informed about changes through employees rather than from either HMRC or third party scheme providers.