Cycle to work scheme and capital allowances

The cycle to work (CTW) scheme is a UK government initiative introduced about 20 years ago to help employees gain access to new cycling equipment for work and personal use. It is one among many other government initiatives aimed at making cycling and walking the natural choices for shorter journeys or as part of a longer journey by 2040 as set out in the Cycling and Walking Investment Strategy published in 2017 (tinyurl.com/govcwis17).

There are several models and variations for running the scheme the most common being the salary sacrifice scheme where the employer either buys or leases the cycling equipment from the scheme approved supplier/provider. The employer then hires it to their employee. The scheme could save employees up to 42% off the cost of a bicycle and accessories by discounting the cost of the equipment prior to income tax and National Insurance contribution...