What is the salary sacrifice for Cycle2Work?
Salary sacrifice is where an employee agrees to give up part of their pre-tax salary in exchange for a benefit from their employer, in this case, the hire of a cycle and/or cycle accessories through the Cycle2Work scheme.
Since a portion of the salary is foregone, the employee pays less tax and National Insurance contributions on the amount sacrificed.
Related articles that may be of interest
- What is Cycle2Work?
- What happens if an employee leaves or is made redundant during the Cycle2Work scheme?
- Can an employee enter into more than one hire agreement at the same time with Cycle2Work?
- Who do I need to involve from my organisation to launch a Cycle2Work scheme?
- Will joining Cycle2Work affect employees' pensions or other benefits?