We’ve been dealing with Cyclescheme for over 15 years, yet this is one of the several schemes we work with. We also supply bikes to employees of various NHS Trusts through SME HCI. We have recently partnered with Green Commute Initiative who are the cycle to work scheme without a £1000 limit. Since we’ve been live with Cyclescheme, we’ve supplied £3million worth of bikes and accessories to thousands of customers in the area.
Here at Mike Vaughan Cycles, we think that the various government Cycle to Work schemes have been a great benefit to all, from employees right through to their employers.
So what is a Cycle to Work Scheme?
Taken from the Department for Transport Website, here’s a brief overview:
To promote healthier journeys to work and to reduce environmental pollution, the 1999 Finance Act introduced an annual tax exemption, which allows employers to loan cycles and cyclists’ safety equipment to employees as a tax-free benefit. The exemption was one of a series of measures introduced under the Government’s Green Transport Plan. The following guidelines clarify how organisations can take advantage of the exemption to implement a Cycle to Work scheme that encourages employees to cycle to work and allows employers to reap the benefits of a healthier workforce.
How does it work?
Cycle to Work schemes are in essence a salary sacrifice scheme, whereby the cost of the bicycle (& accessories) are take out of your wages before tax and National Insurance are applied.
This allows you on average, depending on your tax rate, to save between 32% and 42% on the cost of your bicycle. Employers also benefit from this scheme, saving on National Insurance Contributions.
How can I get a bicycle through Cycle to Work Scheme?
Ask your boss
Find out if your employer is signed up to one of the various schemes. If not, ask them why not! If you are self-empoyed, yet are paid through PAYE, speak to your accountant. This is the same for any smaller business where an administration company (such as Cyclescheme) is not necessary.
Tell us what you want
If you’re signed up, then come in and talk to us about the bike that you want. We’ll advise you on what’s the most suitable for your needs and kit you up with any accessories. (Please note there are some exceptions to accessories allowed on a Cycle to Work Scheme.)
Find out what you can spend
Most employers are restricted by their consumer credit licence which allows you to spend up to £1000, but this does not apply to every employer.
Ask us for a quotation
Once you’ve chosen your bike we’ll write you a quotation and take a £50 refundable deposit to secure your bike. Depending on the scheme, you then submit your quotation (some schemes allow you to do this online – check with your employer).
Submit your quotation and wait for approval
Once your quotation has been submitted and approved, you’ll get sent a Certificate or Letter of Collection. Once you have this physically in your hand, please give us a call to arrange your bicycle to be built and kitted out.
Pick up your new bike!
When your bike’s ready come in to see us again, bring your Certificate or LoC and some photo ID. We’ll get it all signed up, refund your deposit and away you go! Your payments for the bicycle will then be taken from your wages by your employer.