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@ex-pat_scot
velocipede
You need to earn enough to still be paying tax at basic rate AFTER you have the "salary sacrifice".
Obviously, if you are paying tax at 40% then you will save 40% tax rather than basic rate.
If you are VAT registered then you can reclaim the input VAT as well.
You will also not have to pay ers and ees NIC on the salary sacrificed.
There are 2 other things to consider:
could you not get the company to buy the bike, to be made available for its employees for business purposes only? (so no Benefit in Kind). You would reduce the company taxable profits by the full amount of the bike's purchase price, so would be paying less Corp Tax. You wouldn't have to charge anything to the employees for using it for business purposes...
Obviously it depends on what kind of business and business travel you do!
if it's your own business, then you #might# want a monster bike. I've heard of the CS being used for a £6,000 beast! The only restriction is that the company must apply for its own consumer credit licence (@ £75 and probably a bit of form-filling) if it wants to go above the £1,000 standard limit that the CS allows.
you have complete flexibility over which scheme to use. I'd err towards the one that allows you to use Planet X or your local bike store, if it were my choice...