Tour de Catford


Updated on 16 December 2008 | 0 Comments

You might not be the winner of the yellow jersey. But cycling has many other rewards.

The world famous Tour de France cycle race starts from London for the first time ever, on 8 July.

If you're not a cyclist already, this might inspire you to give it a go yourself. I don't mean taking part in the Tour de France, but cycling to work instead of driving or using public transport.

Why should you? Well, for one thing, did you know that your boss can help pay for your journey to work, if you travel by bike?

The government's Cycle To Work initiative can save you around 38-45% of the cost of a bike and accessories, if you buy them through your employer. And it's tax free.

How the scheme works

1. Your employer signs up for the scheme.

2. You choose a bike from an approved supplier

3. Your employer buys the bike for you and reclaims the VAT

4. You then lease the bike from your employer, paying back equal instalments of the VAT free price, from your salary, over 18 months

5. The tax benefit is that you don't pay any tax or national insurance on the portion of your salary that is paying for the bike, which means further savings for you.

6. At the end of the 18 months, you can buy the bike from your employer at a fair market price (usually around 5% of the original price).

The only condition is that the bike needs to be used mainly for getting to and from work, or for other work related purposes.

Still not convinced? Here's a summary of the main benefits, that could change your mind.

Two wheels better than four

1. It's great value for money

Not just because a bike is usually cheaper than a car or public transport anyway, but also if you take advantage of this scheme, you'll be able to get a brand new bike, tax free and at a low cost.

On the basis that you buy a bike worth £450, your monthly payments would be around £14 net. Very few of us are lucky enough to pay as little as that for travel costs to and from work, so this is a real bargain. And, remember, the bike can be yours for a fraction of the original price, at the end of the leasing arrangement.

2. It's environmentally friendly too

Huge carbon and cost savings could be made if commuters switched from four wheels to two, according to research from Cycling England.

They reckon that if you're one of the millions of employees who currently travel less than 5 miles to work, by car or bus, you could save almost £500 per year if you switched to cycling.

And in just one week of cycling, you could all save the equivalent carbon generated by more than 102 million kWh of electricity. That's in England alone.

3. It's good for your health

More and more people are getting healthier, as well as wealthier, by switching from car or public transport to cycling. A recent survey by Cornhill Direct shows that the number cyclists is up from 2.3 million to more than 3 million in the last few years.

More cyclists and less traffic also means less noise and pollution, which is another health benefit for us all.

So, cycling doesn't just save you money. It saves the environment and keeps you fit too. Three very good reasons for getting on your bike.

More: Visit our Cycling Fools discussion board. | Save Money By Being Green!

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