Did you know that you can save up to 47% on a brand-new bicycle with a Cycle to Work Scheme?
The Cycle to Work Scheme is designed to help you save money on a new work bike and spread the cost of the bike over monthly-tax-free instalments through your employer.
Most schemes also now offer you the chance to purchase an electric bike (e-bike) if you’re looking for something to give you an extra boost on your commute.
Tax-Free Instalments
Monthly payments for the new bike are taken from the employee’s gross salary before any tax is deducted. You’ll pay less tax and National Insurance every month you’re paying off the bike.
This means that at the end of the scheme, you’ll have saved up to 32% of the actual cost of the bike for basic-rate taxpayers and even more for higher-rate ones.
With most providers, there is an end-of-scheme payment. This is because, technically, you have loaned the bike, so you have to buy it at what HMRC calls a fair market value. This usually works out to around 7%.
There’s a financial benefit to your employer too; they end up paying less employer National Insurance contribution, so they save about 13% on the cost of the bike.
How Does It Work?
01.
Contact Your Employer
The first step is to find out which Cycle to Work Scheme your employer is signed up to. If your employer is not signed up to one, or you are not sure, speak to your manager or HR department and direct them to this page or a scheme below.
02.
Choose Your Bike
Visit our store or drop us an email or call, and we will take the time to talk about what sort of bike and equipment is best for you based on your intended purpose for the bike. We will guide you through all the options available to you in clear language rather than blinding you with tech talk.
03.
Get Your Voucher
Once you have decided on a bike, we will provide you with a written quote. This quote can then be submitted to the scheme that your employer is signed up to using their unique employer pin. If you’re unsure what this is, please ask your manager or HR department.
Your employer will then need to confirm your eligibility and approve your request. An invoice for the bike package is then sent and a hire agreement will be sent to you to sign. As soon as the bike is paid for, you will receive the voucher, which you will then give to us.
Accepted Schemes
There are many cycle schemes available, but we strongly recommend the Green Commute Initiative as it has several benefits for all parties involved:
- No £1,000 limit, up to £10,000 unlike other Cycle to Work Schemes.
- 6 months to 24 months payback available.
- Ideal for company owners via PAYE.
- Less admin for employers because GCI manages the scheme.
Find out more about the Green Commute Initiative here.
Other schemes available include:
• Cyclescheme.co.uk
• Bike2WorkScheme.co.uk
• Cycle2Work
• And many more, just ask!