CYCLE TO WORK SCHEME NEWS

"The Independent Office of Tax Simplification has recommended the continuation of the Cycle To Work tax relief scheme.
 
The office said it recognised that the bike to work legislation has played a key role in helping people live healthier lives, creating new cyclists. The Office of Tax Simplification has presented its findings to the Chancellor of the Exchequer and a formal response is expected as part of the 2011 Budget.
 
The Office of Tax Simplification was created by the Coalition Government in July 2010 to produce independent advice on simplifying the UK tax system. George Osbourne tasked it with reviewing all tax relief systems in time for the 2011 Budget.
 
Behavioural Impact Analysis found that 76 per cent of B2W users said they would not have bought a bike if they hadn’t been offered one through a Bike 2 Work Scheme. 87 per cent of those who bike to work said they have noticed a direct health benefit from their more active commute.
 
Last summer the future of Bike Schemes appeared to be in flux following a rule change on the Scheme by HMRC. However, we have maintained that the initiative is still very valuable to employers, employees and participating bike dealers, issuing clarification on the ruling. This recent recommendation from the Office of Tax Simplification is yet another positive sign for the future of Bike 2 Work Scheme."