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- Employer purchases a bicycle and cycling safety equipment for staff.
- Purchase made via capital expenditure or operating lease
- Staff lease the equipment from their employer – over 12 / 18 months.
- Employer may treat the bicycle as a business asset & reclaim VAT
- VAT savings may be passed back to employee
- Employer may recoup cost of loaning equipment via salary sacrifice.
- Employee pays fixed monthly amount from gross pay, thus saving TAX and NIC. Cost of borrowing (where incurred) is rolled into each monthly payment.
- Employer retains ownership throughout term
- At end of hire period, employer may decide to transfer title for “fair market value”
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