Ever found yourself daydreaming about a world where keeping fit not only boosts your health but also your bank balance? If not, then it´s likely just me. I´ve had that thought more than once and it´s no exception today.
I was out this morning, taking my dog for a brisk walk, and I felt fantastic. While I may not always feel like it, there is no excuse when those puppy dog eyes look at me, and once I´m outside rain, wind, or shine (and usually wearing the same large-brimmed hat), I start to feel so much better. In fact, if I don´t get a walk-in before work, I feel it! Whether I feel stiff, have reduced energy, or a decreased creative output, it´s a reminder that exercise is a necessity.
So why am I telling you this?
The reason is twofold: one, there are not many better ways to look after your health than getting physical and breathing fresh air, especially first thing in the morning, and two, it is possible to combine looking after yourself (and your team members) and getting a tax break through the business! Here´s how.
Option A: purchase an office bike
Your company can purchase a bicycle to loan to employees to ride for business, which is handy if you have local visits. Much like a pool car, it would have to be available to all employees.
While there is no taxable benefit in kind for this scheme, it does mean that the whole team can benefit from using a bicycle to get around for short journeys. This is great for mental health as the exercise increases energy and dopamine release (the happy hormone), both of which can then lead to increased productivity due to longer periods of focus.
Sounds like a win-win, right? It can also boost mood which, in turn, can have a ripple effect throughout the office as the whole team feels energised.
Looking for ways to save on tax? Get in touch with us at [email protected] – we´ve got some great advice you don´t want to miss.
Option B: the cycle-to-work scheme
Whilst buying large-brimmed hats and walking boots may be tax deductible as protective clothing for landscape gardeners, it’s not always accepted by HMRC applying the ‘wholly and exclusively needed for work’ test for office workers!
However, employers can purchase a bicycle for each employee via the recognised Cycle to Work Scheme, and employees will pay this back via a salary sacrifice.
This means that a basic rate taxpayer earning £50,000 or less would save 20% in tax and 10% in National Insurance. And for higher-rate earners, they´ll save even more on taxes.
What´s more is that the company will also be saving on corporation tax as well, so it´s a triple win-win: you get fit, save money, and your company saves too!
Want to save pounds from your wallet, while shaving inches from your waistline?
If you want to take advantage of the cycle-to-work scheme or find out about others you could be taking advantage of to save on tax, get in touch with us. We can help with this and more.
[email protected]
