We’re now A Proud Bike2Work Scheme Provider!
We’re thrilled to announce that Rossendale Bike Hub is now a proud provider of the Bike2Work Scheme! This fantastic program is designed to help you save money while promoting a healthy and sustainable lifestyle. It’s a win-win, especially when you consider the added benefit of tax savings.
How it works
The scheme itself is quite straigtforward. You register on the scheme and then visit the Rossendale Bike Hub to choose your perfect bike. We’ll give you a written quotation to give to your employer. Your employer then gives you a voucher to bring back to Rossendale Bike Hub and order your chosen bike – the employer will pay for it on your behalf.
You then pay back your employer in monthly installments from your salary. Now here’s the clever bit – you pay back from your salary before tax, which means you effectively save tax on the value of the bike.
Here’s a quick video explaining how it works:
The savings
Let’s explain the tax shenanigans by way of a simple example with highly simplified numbers. Suppose your salary is £1000 and you pay 20% tax (for this example we’re using tax to mean both Income Tax and National Insurance). Your take home pay is £800, and you’ve paid £200 tax. Now let’s say you buy a bike through the Bike to Work scheme and you have to pay £100 each month for the monthly installment. The £100 installment is taken first, before the tax. So you now only pay £900 x 20% in tax which is £180. Your take home pay is now £720 and £100 has gone towards the bike – you’ve saved £20. This is of course a very simple example. In reality the savings are probably much higher as you could be saving between 32% and 42% in tax!
Here’s a handy calculator to calculate what your potential savings might be.
Benefits of the Bike2Work scheme
There are many benefits to the Bike2Work Scheme and even more when you purchase your bike through the Rossendale Bike Hub.
Some things to look out for
There are some specifics of the bike2work scheme you should be aware of.
First, your employer needs to be signed up to the scheme. If your employer is not signed up, then give them a nudge and ask them to look into it. There’s a benefit to employers too – they can potentially save over 13% on their Employer’s National Insurance bill, and of course they would have a happier work force to boot!
Secondly, there may be a limit on the value of the bike you can purchase through the scheme. Be sure to understand your employer’s specific policies.
Finally, also understand what the ownership status is with your employers scheme. Sometimes you don’t own the bike outright until the payments have been completed.
How we can help you get on your bike
Our goal at Rossendale Bike Hub is to help you save money, get active, and reduce your carbon footprint. And it doesn’t stop at bikes. Rossendale Bike Hub is also a unique space where you can relax with good coffee, delicious food, and a welcoming atmosphere. It’s not your typical bike shop; it’s a community hub for all things biking.
Book an appointment now to explore the right bike for you and get more details about the Bike to Work Scheme and how you can start your journey to a healthier, more eco-friendly lifestyle.
Let’s save money, get moving, and make biking a part of your daily routine. See you at Rossendale Bike Hub!
