Bike: December 2007 Archives

My employer has recently started offering discounted bikes using the government's Bike to Work scheme. Under the scheme, employees can effectively buy a bike tax-free, therefore saving 30-40% on the original cost of the bike.  It works like this:

• The employer buys the bike
• The employer allows the employee to use the bike
• The employer deducts the cost of the bike from employee's salary, over a 12 or 18 month period
• The deduction is made before tax, meaning no tax is charged on the amount paid for the bike
  
• At the end of the 12 or 18 month period, the employer can sell the bike to the employee for a nominal fee