Join the bike revolution – and get a big tax boost

LOCKDOWN has created a boom in cycling – and the revolution will continue apace next month with the launch of a £2billion government travel scheme that will mean more bike-only lanes in the country’s major cities. In recent weeks, millions of people have dusted down often long-forgotten iron horses covered in cobwebs at the back of garden sheds and garages – and ridden them on quiet roads. Bike shops, allowed to stay open during lockdown, have done a roaring trade – cycle sales have doubled and there has been a fivefold increase in the purchase of related accessories such as helmets. Sales of electric bikes – known as e-bikes – have also doubled year on year while interest in electric scooters is up 30 per cent compared to pre-pandemic levels.

Phil Hollins is a cycling enthusiast. He offers new cyclists training advice and sells bikes via website Cycle Positive. He says: ‘Getting on a bike used to be all about fitness, but recently people have been discovering what a marvellous sense of joy and mental wellbeing it also brings. This opportunity must not be lost.’

Hollins points out that cycling should no longer be viewed as a pursuit primarily for the ‘mamil’ – a middle-aged man in Lycra – but a pleasure for all ages and fitness levels.

There are more than 16,500 miles of cycleways and paths to rediscover the pleasure of biking – details of which can be found on the National Cycle Network website.

To help build confidence if you haven’t been on a bike for a while, you can take bikeability lessons – the new version of the cycling proficiency test. They are not just for children but adults, too. Details are available online or from your local council.

HOW TO BUY A BIKE WITH A TAX-BREAK

BEFORE rushing to the shops to buy a shiny new bicycle, you should think about the kind that best suits.

Hollins says: ‘Do not be taken in by gimmicky bells-and-whistles extras offered on a cheap bike costing just £100 or so. Instead, consider how it feels to ride and how safe it is. It can mean paying more – £500 or so – for a better quality machine. But view it as a long-term investment.’

Thanks to a tax break known as Cyclescheme – also called Cycle to Work – you can spend £1,000 on a bike and accessories and knock at least 25 per cent off the final cost as a result of tax breaks.

The scheme enables you to avoid paying income tax and National Insurance contributions on the purchase. This works out at an upfront saving of 32 per cent on the initial price if you are a basic rate taxpayer and 42 per cent if a higher rate taxpayer.

Effectively, your employer ends up buying the bike – and you pay for it with monthly sums taken from your salary for a year. It is a tax-free purchase as the payments are taken from your gross salary. There is then a small final ‘sign-off’ payment made when the bike’s ownership is transferred to you – this is not a tax-free transaction.

For example, if you buy a £600 bike, you might pay £34 a month on a 12-month agreement if a basic rate taxpayer – so a total of £408 (you save £120 in income tax and £72 in NI contributions).

You then make a final payment that is typically 7 pent of the initial purchase price. In this case it would be £42. So for a £600 bike, you will end up paying £450.

To benefit, your employer must be signed up to Cyclescheme. Even if they’re not, they may now require little convincing following the recent lockdown.

When purchasing a bike, a Cyclescheme certificate is issued by your employer and handed to the bike shop. The £1,000 limit can be raised if the employer agrees. It is also available for e-bikes.

PLUG INTO A SURGE OF ELECTRIC POWER

THERE are already more than 50,000 electric bikes on our roads – and the number is set to soar as people warm to the idea of a little help up steep hills.

An e-bike is an expensive investment and can take a bit of getting used to. A reputable dealer will allow you to try one before you buy.

Although hefty compared to a traditional bike they can prove their worth when you twist a hand grip to power you along at up to 15.5 mph. Bikes have at least 25 miles of juice before batteries need recharging – via plugging into the mains electricity at home.

Darren Smith, e-bikes expert at retailer Halfords, says: ‘You still have to pedal the bike, but the difference is you can ride much further and hills feel flatter. If you use it for work, you arrive feeling fresh.’

Along with e-bikes, there is a growing interest in e-scooters – although they are not every pedestrian’s cup of tea.

Under the 1988 Road Traffic Act, it’s illegal to ride these on roads, while the 1835 Highway Act means they cannot be used on pavements. If caught, you can potentially face on-the-spot penalties of £300 and six points on a driving licence. But the Government is reviewing whether to legalise e-scooters as part of its aim to get more people off public transport.

GET A LOCK – AND MAKE SURE YOU ARE COVERED

BIKE security is essential. For starters, a £50 lock is a shrewd investment. Most home contents policies only cover a bike if it is stolen while locked up at home in a garage or shed. Make sure it is listed separately on your policy if it is worth more than £1,000.

Consider paying an extra £30 or so a year in premiums to make sure you also have ‘personal possessions cover’. This ensures a bike is covered if stolen away from the home.