Cycle to work benefit – Cyclescheme
Cyclescheme is the UK’s leading provider of the cycle to work scheme and the founding member of the Cycle to Work Alliance. Cycle to work benefit enables your employees to get a bike tax-free, saving at least 25% on its high street value while spreading the cost. It’s completely free to join for both employers and employees, and easy to administer online.
Cycle to work benefit – for Employees
Save at least 25% on a new bike for work with this cycle to work benefit.
Tax is complicated; the cycle to work scheme 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 in over 2,000 retailers nationwide.
We’ve worked hard to provide a transparent and easy to understand process. There are just four steps to go through to get a bike for work through Cyclescheme.
1. Choose your Cyclescheme package
What bike and equipment do you want? Consider your commute. How far is it? What route will you take? Be honest with yourself. What are your priorities? What accessories might you need? These are all questions you should ask yourself as you prepare to revolutionise your commute!
Firstly, decide on the package that suits you:
Remember, if you’re visiting a retailer they can give you expert one-to-one advice; if you shop online, do your research, check reviews and make sure you get your bike sizing correct. Head to our Retailers page to choose your store or online retailer and get planning.
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.
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, or you can opt for the click-and-collect service that some retailers offer.
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.
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.
This method of transferring ownership is why you save a minimum of 25% rather than a minimum of 32%. Many Cyclescheme participants will save more.
For a personalised savings figure, visit our calculator and enter your details.
Cycle to work benefit – for Employers
About cycle to work benefit.
Cyclescheme enables employees to get a bike tax-free, saving between 25-42%. Employers also enjoying National Insurance savings of up to 13.8%.
Participants can choose from over 2,100 retailers and enjoy the ability to shop in-store or online. Cyclescheme is simple to set up and managing the scheme requires only a few clicks per request.
Employers sign up with Cyclescheme and are given access to a unique MySchemes Account.
Cyclescheme provides you with all the promotional material you could possibly need to promote your new Cycle to Work scheme (including a customisable poster builder).