On your bike
Only three per cent of us cycle to work, according to National Statistics data published this month. But this is based on a survey in 2009 and there is anecdotal evidence from many cities of an increase in the number of regular cyclists on the road as other travel costs rise. Once you own a bicycle, the potential savings are significant. Someone who cycles to work in relatively flat York, for example, could save £15 a week against the weekly cost of a local bus ticket. In some cases you can even be paid for using your bike. If you use a privately owned bike to travel on business, such as visiting customers, an employer is allowed to pay 20p a mile free of any tax and National Insurance. IT worker Karl Roche, 40, splits his week between an office at his home in Sutton, south-west London, and the offices of technology giant IBM, 12 miles away in central London. Karl, who cycles in two days most weeks, says: ‘I can combine exercise with the commute and get to work feeling alive and awake.’ He also saves the £15 cost of the daily train fare – about £3,600 a year. A sympathetic employer is a huge boost for cyclists. IBM, for example, provides secure cycle storage – and showers. Karl, who is married to Ping, 35, and has daughters, Phoebe, 6, and Zoe, 3, says: ‘You do need somewhere to get changed and to keep clothes, so we’re lucky to have the right facilities.’ The Government’s cycle to work scheme allows employers to provide a tax-free bike to staff. In most cases, employees pay for the bike by voluntarily reducing their salary by a set amount each month to cover the cost of the cycle and any accessories. This means employees pay no income tax and no NI on the costs while the employer saves NI. Most employers can also reclaim VAT on the cost of the bike. Savings depend on exactly how a company implements the scheme and on your income tax rate. You can typically save between 42 per cent and 52 per cent on the retail price of a bike, says Cyclescheme, which helps employers provide workplace cycles. Karl took delivery of a new Giant Defy road bike, financed through cyclescheme.co.uk, earlier this year. This cuts his takehome pay by just over £45 a month for a year (a total of £540), but gives him a bike and accessories that would cost almost £1,100 in the shops.
