You can save up to 39% on your brand-new tax-free bike and accessories once your company joins the cycle to work CycleScheme programme.
The government-sponsored bike to work programme makes it simple for employees to buy brand-new riding equipment tax-free through their employer. It’s an affordable option to get the ebike you desire, allowing you to commute to work in an environmentally friendly manner and improving your welfare, with no upfront costs.
Distribute the cost of your bike through monthly instalments that are automatically collected from your salary, sometimes known as ‘salary sacrifice’. The cycle to work programme with CycleScheme, one of the most well-liked workplace perks, gives you access to high-quality electric cycling brands with a thorough warranty.
Check out our helpful calculator for your organization’s bike to work programme to receive a quick estimate of how much you could save!
At least 25% – all in! If you’re a higher-rate taxpayer, you’ll save at least 39%.
Almost any item you need to cycle to work including lights, locks, helmet and clothing. Go for a bike, a bike and accessories, or just accessories – it’s your choice.
It’s an agreement between you and your employer. This details what you’re hiring, for how long and with what repayments.
This depends on how you get paid – weekly, monthly, 4 weekly, etc. Also, how long your Hire Agreement is in place for. For most people, this is 12 equal payments taken from your salary across 12 months.
The Ownership Fee is a set percentage based on the age and value of your Cyclescheme package. At 4 years old, 3% needs to be paid on packages less than £500 and only 7% on packages over £500.
There are numerous cycle to work providers available in the UK and you need to choose the one which meets your needs. If your employees need cycles that are over £1,000, such as commuter-quality e-bikes, then Green Commute Initiative will be the obvious choice. GCI has no £1,000 limit and no scheme exit fees. This means employees will benefit from the full tax saving applicable to them. GCI is also the only scheme set up as a not-for-profit social enterprise whose constitution prevents it from taking on debt. Therefore, it can never have creditors and cannot become insolvent. This means the bikes are safe and will always end up with the employee. No other provider can currently offer this safeguard.
When an employee leaves before the end of the agreement, any outstanding amount on the loan must be repaid within 14 days of leaving the employment. However, the final salary payment must not take them below the minimum wage (before tax is deducted). If the outstanding amount owed is not fully covered by the final salary payment, the employee must pay it through their own means. This will mean that they lose the tax-free benefit on any amount not paid via their salary.