What is the Cycle to Work scheme and how does it work with Tide Payroll?

The Cycle to Work scheme is a tax exemption initiative which aims to promote healthier travels to work and reduce environmental pollution. It allows employers to loan cycles and safety equipment to employees, as a tax-free benefit. 

Before adding Cycle to Work repayment for an employee, you need to set up the scheme for your company. See how to do this here. 

When ready, add the repayment plan to start deducting instalments from the employee’s pay every month. Go to: 

Admin > Team view > select the employee > Work & Pay > Cycle to Work repayment plan > Add repayment plan > add all details and Save.

Deductions will start with your next payroll and will continue each month, until all instalments are paid off. 

What happens if an employee leaves before they’ve fully repaid their Cycle to Work loan?

When an employee leaves during the repayment period, any outstanding balance on their Cycle to Work scheme should be deducted from their final Net salary.

If the outstanding balance exceeds the employee's final salary, they may end up with a negative pay slip, meaning they owe money to the company.