Cycle to Work, NHS Scheme, Cyclescheme, Cycleplus, Halfords Scheme and Vivup
This is made possible by the Government's Green Transport Plan which not only aims to reduce environmental pollution and promote healthier lifestyles but also make cycling to work a cost-effective option for employees.
You can take advantage of this fantastic opportunity today
You can sign up through bike2workscheme.co.uk or
Employees can make big savings on new bikes, employers get a healthier workforce and save money too! Cyclescheme helps employers of all sizes to set up and run successful Cycle to Work schemes. BikeBase in Southend are an official supplier to the scheme.
Who can participate in the scheme?
There is no minimum or maximum company size necessary to sign up to the scheme. Eligible employees must: be paying PAYE, earn more than the National Minimum Wage after salary sacrifice, and have a contract that does not end during the hire period. Employees who earn close to the National Minimum Wage following salary sacrifice may wish to discuss with their employer the option of loan or pool bikes. There is no credit check for employees wishing to participate.
Under 18s can join the scheme if their guardian signs a guarantor agreement.
What are the savings?
Typical savings are between 40% and 50%, but the actual amount depends on the employee's personal tax band and the way the employer runs their scheme. Higher rate taxpayers will save more, employees whose company cannot reclaim VAT (the NHS, for example) will save less. If the employer uses external finance (i.e. borrows the money to buy the bikes from an outside agent) then savings will be approximately 5% lower.
What bikes are available?
Employees can choose any bike - including electric bikes, folding bikes and other specialist cycles, - providing it can be provided by one of Cyclescheme's official Partner Shops (BIKEBASE in Southend and the Essex area). If the employer wants to supply bikes costing over £1000 (retail price including VAT) they will need to purchase an individual Consumer Credit Licence, so many employers limit the package value to £1000 inc. VAT. Please note that obtaining bikes for friends and family is not permitted; the bike must be for the employee.
Who actually owns the bike?
The bike and goods remain the property of the employer throughout the hire period, unless the employer uses a finance company to fund the bikes; in this case the finance company or funding bank will own the bikes.
Does the bike have to be used for commuting?
Employees should use the bike mainly for commuting to and, if relevant, between work places (at least 50% of the bike's use should be for work purposes). However, the bike can also be used for non-work purposes and there is no need for employers to monitor individual usage or for employees to keep a mileage log. Please note that employees can not claim business mileage allowance with a bike obtained under the scheme as the bike belongs to the employer.
What happens at the end of the hire period?
At the end of the hire period employees may be given the opportunity to buy the bike for a full market value, however this cannot be an automatic entitlement. The cost of full market value cannot be stated before or during the hire period as this could be considered a benefit in kind and therefore not be eligible for tax benefits. Many employers opt for Cyclescheme to take ownership of the bikes at the end of the hire term, in which case any offer sale to the employee will come directly from Cyclescheme.