These allow companies to provide employees with cycle and safety equipment for use when travelling between home and work without incurring benefit-in-kind tax. Employees are also be able to claim a 12p a mile cycle mileage rate tax-free and workplace parking charges will not apply to bikes.
But London-based advertising agency Saatchi and Saatchi, which introduced a cycling scheme 18 months ago, has not been a massive success. The company invested in a fleet of 10 £300 bicycles complete with its logo to keep staff out of company cars and taxis when travelling in the capital.
At the time of the launch a spokeswoman said the bikes did not replace company cars but were to be used by staff to travel around the capital instead of being held up in traffic jams.
This week a spokeswoman told FNN: 'We still have the bikes locked up outside our office and if staff want to use them they can obtain a key to unlock them. But they have not been that popular because I think staff don't want to arrive hot and sweaty for a meeting. They would rather travel by taxi and arrive smart.'