As an example, the C2W scheme my employer offers (assuming you pay tax at the 20% rate):
Cost of Bike: £500
Vouchers: £500
Gross mthly cost: £41.67
NET mthly cost: £28.33 (gross minus tax & NI)
Tax benefit (saving) over the year: £100.00
NI benefit (saving) over the year: £60.00
Total Cost to you Over the Year: £340.00
Plus tax at your basic rate on Fair Market Value: £18.00
(set by HMRC at 18% bike <£501, 25% bike >500)
Cost to Own the Bike over 12 Months: £358.00
(Plus we get 15% of voucher amount as a ‘bonus’ for accessories if we buy through Halfords, so for £500 voucher this is another £75).