Cycle to Work Day

Can you drive Employee Wellbeing through Payroll and Salary Sacrifice within your SME?

Every year, Cycle to Work Day encourages people across the UK to swap four wheels for two, promoting healthier lifestyles, greener commuting and happier workplaces.

For employers, it's also an opportunity to showcase how a well-designed employee benefits package can support financial wellbeing, physical health and employee engagement - all while making payroll work harder for your business.

More than just a Bike

The UK's Cycle to Work Scheme allows employees to spread the cost of a bicycle and eligible safety equipment through a salary sacrifice arrangement, making cycling significantly more affordable than purchasing outright.

Rather than paying from their net salary, employees agree to reduce their gross salary over an agreed period. The payments are processed through payroll before Income Tax and National Insurance are deducted, helping many employees make meaningful savings, depending on their tax position and the scheme's structure.

For employers, it's a straightforward way to offer a highly valued benefit while supporting healthier, more sustainable commuting.

Why Payroll Plays a Key Role

Whilst employees often see the end result, a new bike, the real engine behind a successful Cycle to Work Scheme is payroll.

Payroll teams ensure that:

• Salary sacrifice deductions are processed accurately.

• National Minimum Wage requirements are maintained.

• Employee records remain compliant.

• Payroll reporting is correct.

• The scheme runs smoothly with minimal administration.

  
  

When payroll and HR work together, salary sacrifice benefits become easy to manage and deliver real value for employees.

A Win for Employee Wellbeing with the Cycle to Work Scheme

Employee wellbeing isn't just about gym memberships and fruit bowls.

Supporting healthier travel choices can positively impact both physical and mental health.

Regular cycling can help:

• Improve cardiovascular health

• Reduce stress and anxiety

• Increase daily physical activity

• Improve energy levels

• Support work-life balance

• Reduce commuting costs

• Lower carbon emissions

Employees who feel healthier and financially supported are often more engaged, more productive and less likely to be absent from work.

Employee Benefits that People Actually Value

Today's employees increasingly look beyond salary when choosing an employer.

Benefits that improve everyday life often have the greatest impact, and Cycle to Work is an excellent example of a practical, tax-efficient benefit that employees genuinely use.

Combined with other salary sacrifice benefits, such as pension salary exchange, electric vehicle schemes or workplace technology programmes, it forms part of a modern employee value proposition that helps organisations attract and retain talent.

Supporting ESG and Sustainability Goals

Many organisations are working towards reducing their environmental impact.

Encouraging cycling supports:

• Lower carbon emissions

• Reduced traffic congestion

• Healthier communities

• Corporate sustainability initiatives

• Environmental, Social and Governance (ESG) objectives

It's a simple benefit that contributes to wider business goals while supporting employees.

How Hello People Solutions Can Help

At Hello People Solutions, we know that great employee benefits rely on accurate, compliant payroll.

Whether you're introducing a Cycle to Work Scheme, reviewing your salary sacrifice arrangements or looking to strengthen your overall employee benefits offering, our payroll experts can help ensure everything runs smoothly and compliantly.

Because when payroll works seamlessly, your people can focus on enjoying the benefits that matter most.

Ready to Support Your People?

If you're considering introducing a Cycle to Work Scheme or reviewing your payroll processes, we'd love to help.

Get in touch with Hello People Solutions to find out how payroll can become a strategic part of your employee wellbeing and benefits programme.