- * Who are Cyclescheme and what makes us different?
- How do employees get a tax-free bike for work through Cyclescheme?
- Who can participate in the scheme?
- What is salary sacrifice and how do participants save?
- What are the savings for the employee and employer?
- What bikes are available through the scheme?
- Who actually owns the bike?
- What is the maximum value bicycle and safety equipment package employees can select through the scheme?
- Does the bike have to be used for commuting?
- What happens at the end of the hire period?
- What happens if an employee leaves their job or is made redundant?
cyclescheme provides unrivalled administrative and promotional services to employers of all sizes wishing to set up a Cycle to Work Scheme benefit for their employees. We offer the most admin-friendly scheme for employers and the greatest choice of bikes and equipment for employees. To get a better feel of who we are and what we do, here’s a list of some of the aspects of our service that we are most proud of:
How do employees get a tax-free bike for work through Cyclescheme?
Step 1. Once an employer is partnered with Cyclescheme (employers can sign up here) all employees wishing to participate visit a local Cyclescheme Partner Store to choose the bike and, if required, safety equipment.
Step 2. Employees then apply for a Cyclescheme Certificate online using a unique link to our secure Extranet facility. The unique link is provided to employers and distributed to all employees. The employee will usually sign an online Hire Agreement at this time.
Step 3. If the employer approves their application they will countersign the Hire Agreement and pay Cyclescheme for the full retail price of the bike and equipment.
Step 4. Cyclescheme will then post out a paper Certificate, usually to employee’s home address.
Step 5. The Certificate is then redeemed in the bike shop and exchanged for the bike package. Salary sacrifice then commences over the hire period (usually 12 months). The salary sacrifice is made prior to Income Tax and National Insurance contributions and, as a result, employees pay less of both. Most employers can pass on a VAT saving too.
Step 6. At the end of the hire period the owner of the equipment may choose to offer the employee ownership of the bike for a market value payment, or the employee may pay a small deposit allowing them to remain in possession of the bike and continue to use it.
Please note that the above procedure applies to the vast majority of schemes, but there are some variations to the above. This variation depends on how the employer’s scheme is set up, i.e., the employer may use a finance company to fund the scheme (see below) or a benefits provider.