CYCLE TO WORK SCHEME
Cycle Scheme is a quick and easy way to saving at least 25% on a new bike!
Tax is complicated; Cyclescheme is not. You choose a bike, hire it for an agreed length of time, then snap it up for a fraction of its original value. It’s like a year-round sale, with interest free credit available from the retailer you purchase it from!
There are just four steps to go through to get a bike for work through Cyclescheme.
STEP 1:- Choose your Cyclescheme package
Decide on what bike and equipment you want and then decide on the package that suits you from the following 3 options:-
STEP 2:- Submit your application
This couldn’t be easier. If your employer is signed up with Cyclescheme, they’ll have a unique employer code to use when you apply via cyclescheme.co.uk. If your employer isn’t signed up, they can join for free in just a few clicks here.
On the application page, you’ll be guided through a simple form that asks for your work details, contact information and the value of the Cyclescheme Certificate you’re applying for. When you submit the form, your employer will receive a copy of your Hire Agreement.
STEP 3:- Get your Cyclescheme package
With your application approved and paid for by your employer, it’s time to exchange your Cyclescheme Certificate for your Cyclescheme package. Contact your retailer and arrange a time to pop in and pick up your equipment. If you shopped online, your package can be delivered to an address that suits you.
Your salary sacrifice and Hire Agreement now kicks in. For the next 12 months, you’ll pay a set amount from your salary each month in exchange for the hire of your Cyclescheme package from your employer. The deduction is made from your gross salary, so you make income tax and national insurance savings of 32% if you’re a standard rate tax payer, or 42% if you’re a higher rate tax payer.
STEP 4:- Transfer ownership
When the Hire Agreement and salary sacrifice ends, you can keep your Cyclescheme Package by making a final payment for just a small amount.
For a Cyclescheme package under £500, you’ll pay 3% of the original value; for a package over £500, it’s 7% – so a maximum of £70 on a £1,000 package. The bike remains ‘hired’ for a further 36 months, but with no more monthly payments. Ownership can then officially be transferred to you at no extra cost.