Ive used "Cycle2work" scheme before but now im trying to set my work up with another scheme. What others operate the same as cycle2work where you use your national insurance number. Im looking at "cycle scheme and it looks like your employer needs to front some cash first. WHat schemes just come off your wage without any initial investment from your employer? thanks

I can't say for the UK, but here in the USA, we have several pre-tax pay as you go benefits, such as 401K retirement savings and Health Savings Accounts.

You could, of course, also dump cash into personal savings, children's college funds, or IRA retirement accounts. The USA has a "Roth IRA" which is post tax retirement savings (where income from the Roth is tax free).

All the cycle to work schemes work in the same way, 'someone' has to pay the initial upfront cost (or basically you're getting an interest free loan for a bike). Your company makes the initial payment and on a technicality loan the bike to you till the end of the scheme, when you can opt to buy it from them. Again, most companies will offer it to you for £5 because in reality you've already paid off the cost of the bike.

You make savings because the cost of the bike is deducted from your salary before tax but after NI contributions (I think its after NI, could be before that too). Thus you save money because you're being taxed less on your salary, thus the scheme works really well if you're being taxed like a biznitatch.

That being said, I've only seen the two schemes, both of which operate on a similar salary sacrifice financial structure.

Its worth noting that bikes on offer can only be offered at full price for these schemes, its a caveat that should be mentioned more often as sometime a discounted bike may be a lot less, in that case its just not worth it.