CycleScheme, Bike2Work ,Green commute Initiative, Cycle 2 work, Cycle Plus and NHS.
There are many Cycle to work schemes, we generally accept all of them however, if you do not see the one your employer participates in listed, please give us a call to check.
How does the Cycle to Work scheme work?
In essence, your employer buys a bike for you to ride to work, you 'hire' it through salary sacrifice (which is where you save by not paying tax and National Insurance on the monthly fees) as well as not paying VAT on the bike. At the end of the 'hire' period, you buy the bike from your employer. In other words, your salary sacrifice is made from your gross salary, not your net salary. Because it was set up to promote work journeys rather than cycling in general, your employer technically remains the owner of the bike once you finish the hire period. Everyone knows that in practice the employee is 'buying' the bike, but that isn't legally the case until the salary sacrifice ends and the employer 'sells' the now heavily depreciated equipment to the employee. Is there a limit to how much you can spend? As of June 2019, the government have announced that new cycle to work guidance had been released. This is an exciting update with the biggest change being the removal of the £1,000 scheme limit. This means participants can increase their scheme savings and access higher-priced items like e-bikes.
The refreshed guidance will make it easier for employers to provide bicycles and equipment worth over £1,000, by making it clear that FCA authorised third party providers are able to run the scheme on their behalf. At the end of the 12-month 'hire' period, you buy the bike from your employer for its HM Revenue & Customs (HMRC) approved Fair Market Value (FMV). This is a change from the previous end-of-scheme payment, where you just paid five% of the value of the bike to your employer. However — as mentioned above — various scheme providers have come up with ways to minimise the final cost of the bike. One is to extend the loan period past one year, thereby allowing one of the heavier depreciation figures to be used. The other solution involves paying the tax on the Fair Market Value.
How do order my bike through a cycle to work scheme?
Buying a bike using the Cycle Scheme is very straight forward. Add the bike and any accessories you'd like to your basket and proceed through to the checkout. At checkout, there are 3 options. You should tick the third option 'Contact me for my payment details' this will allow you to fill in all your details and place an order without having to enter any card details. Add a note to say that you're using Cycle to Work, the scheme provider and your employer's details in the comments section and then 'Place Order'.
Once we have received your order, you'll receive an automatic confirmation email showing the cash value of your order. We will then supply you with a quote (if need) for the total value of the bike and accessories. Please note, Ordering a discounted bike through any of the Cycle to work schemes and Bikes for NHS you will be paying either the advertised price plus 10%-15% or the RRP price whichever is lower. This is because we are charged a percentage of the value of the bike by the scheme provider as they are effectively middlemen between us and your employer. We, unfortunately, have to pass that on to you. Once you have placed an order we will send you a quote for the correct amount to apply for. Different companies work in different ways. Some require a quote others just want to know the total value you are applying for. Once you have applied for your certificate your employer will then be in contact with their chosen Cycle Scheme provider to arrange the necessary deductions from your salary.
- Green commute initiative (5%) www.greencommuteinitiative.uk
- Cyclescheme (10%) www.cyclescheme.co.uk
- Halfords Cycle2work (15%)www.cycle2work.info
- Cycleplus (10%)cycleplus
- Bike2workscheme (10%) www.bike2workscheme.co.uk
- SME HCI Ltd (12.5%) NHS Bike scheme
End of hire process: