Cycle To Work
Cycle To Work Schemes in a Nutshell
Basically, you can get as much as 48% off the price of a new Ebike or cycling equipment and not pay any tax or national insurance, via a government backed scheme.
The schemes work in a partnership between your employer and the government, whereby you get a brand new bike straight away and you then pay back the reduced cost of the bike through your PAYE over a given period, generally from 12 to 18 months.
So, your employer buys you a new bike of your choice at a significant saving, you then pay it back over an agreed period.
The amount you save off the cost of the bike depends on your tax band but will vary between 25% and 40%. So, it is a pretty good deal for the user and for the environment.
You can find out the exact amount you would save by using the calculators in the below affiliated scheme links.
Sound Good? These are the Steps to Get a Bike
- Firstly, you need to check that your employer is enrolled in a cycle scheme and if so which one.
- Your employer will then tell you the price limit they are willing to put towards the scheme and provide an employer code. This is not the amount you need to use, just the limit.
- Make a note of the total price.
- Contact your scheme provider, telling them the product, website and amount.
- Once the scheme provider confirms your order, they will usually provide a voucher. Then contact us to despatch the product to you, please state the product and size plus your delivery address
- Sit back and wait for your new bike to arrive, then enjoy the freedom of your new E bike.
What Happens at The End of the Period?
- Return the Bike
- Own the Bike
You own the bike, but then pay either 18 or 25% of the bike’s value (18% if the bike was initially under £500 and 25% if it was initially over £500). The value of the bike is set by the government at a fair value. See below.
- Extend the Hire Period
At the end of the agreement, you have the option to extend the hire period to 36 months. This will mean you no longer make monthly contributions; however, you need to make a refundable deposit between 3% to 7% based on the below criteria.
|HMRC Fair Market Value|
|Age of Cycle||Original price of bike under £500||Original price of bike over £500|
Frequently Asked Questions
Who are the Cycle Schemes Available to?
The schemes are available to anyone who earns a salary and is paid via (PAYE) . Most big to medium sized business offer a scheme, however, ask your HR contact to double check. If your employer does not use the scheme, it is also easy for them to set one up.
Unfortunately, self-employed are not eligible.
Which Cycling Products Are Included?
All types of bikes & E-bikes, plus cycling related equipment except the below exceptions.
- Individual Bike Components (except via Cycle Scheme)
- Turbo Rollers & Trainers
- Navigational Trackers and GPS
- Bike racks for cars
Can You Use Your Own Money to Increase the Order Value?
All the value of the Cycle Scheme order must be put toward the scheme. Your employer sets the limit for spending.
If the amount provided by your employer is less than the products value, let us know and we’ll see if there’s something we can do to help.
Can I Combine Various Items in The Order?
Yes, once you receive your spending allocation from your employer.
You can then combine various cycling items, even multiple bikes, in any combination up to the spending allocation set.
How Much Can I Save Using the Scheme?
This depends on your tax bracket. The saving will be between 26-40%
What Happens if I Move Jobs?
If you leave your employer who the Cycle Scheme was set up through. The remaining balance for the bike, will be repaid via your final salary.
Can I Use My New Bike Whenever I Want, or Just Commuting to Work?
You can use your bike whenever you want, however the government guidelines request that you use your new bike at least 50% of the time you commute to work.
Please Note: Discounts are not valid when using cycle to work scheme for your Ebike purchase!