Highland Council Cycle to Work Scheme

A Cycle to Work Scheme for employees of The Highland Council was agreed by the Council’s Resources Committee today (Wednesday). This is a salary sacrifice scheme which allows participating employees the opportunity to obtain bicycles and cyclists’ safety equipment using a tax exemption, introduced by the 1999 Finance Act to support the Government’s Green Transport Plan. 

As well as the health benefits for staff from cycling, the scheme will help reduce demand on car parking spaces and traffic congestion. Employees will access significant savings on the retail prices of bicycles and associated equipment through tax and National Insurance relief. 

Under the scheme, the employee must use the bicycle or equipment mainly for qualifying journeys. A qualifying journey is between home and a workplace; between workplaces; or between the workplace and amenities. Other use of the bicycle (e.g. recreational use, or use by members of the employee's family) does not disqualify the exemption provided that the other use is not the main use of the bicycle.

The Council will bear no direct costs for running the scheme and will make minor savings on National Insurance contributions.  Participating employees will sacrifice an amount of their salary over 18 months, equal to the full cost of the bicycle, equipment and finance. The scheme does not require the Council to buy the bikes up-front.

The Council will use an experienced specialist provider to administer the scheme, which will allow employees to be supplied with their chosen bicycle through local independent retailers.