RIDE TO WORK

ΠΟΣΟ ΠΙΣΩ ΕΙΜΑΣΤΕ !!!

As part of the ‘Green Transport Plan’ the UK Government has introduced the ‘Ride to work Scheme’. This scheme allows an employee to save income tax, national insurance and VAT up to 50% on the cost of a new bicycle to be used for commuting.


1. The Employer buys the Bicycle from Chain Reaction Cycles.

2. The Employer can claim back the VAT on the purchase.

3. The VAT free price of the Bicycle is divided by 12 and this amount is deducted from the Employees monthly salary via a Salary Sacrifice. Throughout these 12 months the employee is leasing the bicycle from the employer. The Employee is making additional savings as they will not pay any Income Tax or National Insurance on the amount of Salary reduction.

4. At the end of the 12 months hire agreement, the Employer may ‘sell’ the Bicycle to the Employee for an agreed fee.


CRC Price £900.00

Accessories £100.00

Total Goods £1000.00

Vat claimed -£148.93

Cost to Employer £851.07


Tax Savings 40% £340.40

National Insurance saving 1% £8.51
Cost to Employee £502.52


Savings on CRC Price 50%

Please note that the savings are made from the already discounted CRC prices so the savings from the RRP of the bicycle are likely to be even better.