Cycle to work schemes

We offer several cycle to work schemes, all enabling you to save around 40% off the RRP of your bike and accessories up to £1000 (dependant on limit set by employer) through a tax saving on your wages. Just find out which scheme your employer is signed up to. If there isn’t a scheme set up at your workplace we can provide details for your employer to sign up to one.

We currently signed up to,

• Cyclescheme

• Cycle plus

• Cyclelife cycle2work

• Bike2work

Who can participate in the schemes?

Eligible employees must: be paying PAYE, earn more than the National Minimum Wage after salary sacrifice, and have a contract that does not end during the hire period. Employees who earn close to the National Minimum Wage following salary sacrifice may wish to discuss with their employer the option of loan or pool bikes.  There is no credit check for employees wishing to participate.
Under 18s can join the scheme if their guardian signs a guarantor agreement.

What is salary sacrifice and how are savings made?

Salary sacrifice occurs when an employee agrees to give up part of their salary for an agreed period (in the case of a Cycle to Work scheme this is usually 12 months) in exchange for some kind of non-cash benefit, such as the loan of a bicycle and safety equipment. As salary sacrifice is taken from the gross salary (before tax) rather than net pay it means the employee pays less income tax and National Insurance.

What are the savings?

Typical savings are between 40% and 50%, but the actual amount depends on the employee’s personal tax band and the way the employer runs their scheme.

What bikes are available?

Employees can choose any bike – including electric bikes, folding bikes and other specialist cycles. If the employer wants to supply bikes costing over £1000 (retail price including VAT) they will need to purchase an individual Consumer Credit Licence, so many employers limit the package value to £1000 inc. VAT. Please note that obtaining bikes for friends and family is not permitted; the bike must be for the employee.

Who actually owns the bike?

The bike and goods remain the property of the employer throughout the hire period, unless the employer uses a finance company to fund the bikes; in this case the finance company or funding bank will own the bikes.

Who is responsible for maintaining the bike and what happens if it is stolen?

It is the employee’s responsibility to maintain the bike. We can advise about maintenance and servicing depending on how the bike is used. If the bike is stolen the employee will be liable for any outstanding monies without any tax exemptions, so it’s very important that employees insure the bikes. Safety equipment including Home Office-approved ‘Sold Secure’ D-locks and cable locks can be obtained as part of the scheme.

What’s the best way to insure the bike?

Household policies are usually the cheapest option but employees must ensure that the insurer covers the bike when in storage away from your home, and that the bike’s value doesn’t exceed the upper claim limit. If the bike can’t be covered on a home insurance policy, you could try Cycleguard (www.cycleguard.co.uk) for insurance.

Does the bike have to be used for commuting?

Employees should use the bike mainly for commuting to and, if relevant, between work places (at least 50% of the bike’s use should be for work purposes). However, the bike can also be used for non-work purposes and there is no need for employers to monitor individual usage or for employees to keep a mileage log.

What happens at the end of the hire period?

At the end of the hire period employees may be given the opportunity to buy the bike for a full market value, however this cannot be an automatic entitlement. The cost of full market value cannot be stated before or during the hire period as this could be considered a benefit in kind and therefore not be eligible for tax benefits.

What happens if an employee leaves their job or is made redundant?

Once signed, the Hire Agreement is non-cancellable following a cooling-off period of 7 working days following collection of the goods. This means that if an employee leaves or is made redundant from their employment during the hire period they are obliged to pay the remaining salary sacrifice amount in full from net pay i.e. without any tax exemptions.

Please note the information above is given as a guide to schemes for full details refer to individual scheme providers for their full terms.