To help your employees get to work, you could subsidise their travel on a local public bus service, lay on a works bus, or provide a cycle to work scheme.

The cycling option not only keeps your workers fit, but it allows them to acquire a desirable bike, even one with a super carbon fibre frame.

The employer buys the bicycles and associated safety equipment to lend to employees; alternatively, it contracts with a specialist bicycle hire firm which provides the bikes directly to the employees.

After a period of at least 12 months, the employee has the option to purchase the bike at a significant discount. When the price paid by an employee is within a range of values agreed by HMRC, there is no taxable benefit for the employee on acquiring the bike, and no tax to pay.

There should be a consumer hire agreement in place with each employee who takes advantage of the scheme. If the bicycle costs over £1,000, that consumer hire agreement has to be made by a company authorised under the Financial Services and Markets Act 2000 (FCA approved), but if that is in place there is no limit to the value of the bicycle offered.

The cycle to work scheme is frequently provided as part of a salary sacrifice arrangement, where the employee forgoes an amount of salary in return for the bicycle.

These salary sacrifice arrangements can still save tax and NIC for both the employee and the employer.