New guidance on £1,000 ‘cap’ means more expensive ebikes are available as part of scheme. New guidance on the Cycle to Work scheme was announced by the Department for Transport (DfT), making it clear that ebikes are eligible for it. This clarification could encourage a new demographic on to two wheels, and provide huge benefits to disabled and elderly people.
The scheme is a complicated but well-used salary sacrifice scheme in which employees can get bikes, tax-free, via their employers. It starts with a year-long loan, which most people extend until the bike is worth so little they can “buy” it for a nominal sum or extend the hire for a percentage of the bike’s value. (After five or six years, HMRC considers a bike to have a negligible value).