Save up to 35% on a new bike with your cycle to work schemeWe strongly believe cycling is a lifestyle that can benefit everyone. Luckily our Government agrees too and have created the Cycle to Work Initiative as part of their Green Transport Plan. There are many ways to take advantage of this scheme and companies which your employer may have signed up with to do so
Cycle Tech Oldham have signed up to the most popular Cycle Scheme Providers, cyclescheme.co.uk, bike2work.co.uk, Bikes for Staff which is the NHS preferred scheme, Cycle Solutions, Cycle Plus (Sodexo) and the Halfords Cycle2Work scheme. With being partnered with the most popular scheme providers we can help you from sign up to collection no matter who your employer is signed up to.
Cycle to Work enables you to get a bike tax-free, saving up to 35% on the cost of a new bicycle, as well as the security and safety equipment to go with it. It’s a brilliant program where everyone wins – employees (that’s you) make big savings on new bikes, employers (the boss) get a healthier, more motivated workforce and we all benefit from less cars on the road.
Joining and operating the scheme is completely free and is easy to administer online through www.cyclescheme.co.uk. The scheme is available to all UK tax payers who pay PAYE. Unfortunately Self-employed workers cannot take part.
You are not limited to any brand of bike or equipment and so you can choose the best bike that’s right for you! if you already have a bike you can just get clothing an accessories. This results in the best package of bike and safety equipment for you.
What do I save?The actual amount depends on the employee’s personal tax band but savings for employees are between 25% for basic rate taxpayers and 35% for high rate taxpayers.
Typical savings for a basic rate taxpayer on bike packages hired over a 12-month period are:
|Income tax & NI saved||£72.50||£125||£187.50||£250|
|Net monthly payments||£14.17||£28.33||£42.50||£56.67|
|Total cost of bike package||£177.50||£375||£562.50||£750|
How does it work?Your employer buys the bike and equipment of your choice at full retail price for you to ride to work (up to a value of £1,000) and you 'hire' it through a reduction in your gross wages (salary sacrifice) over a period of 12 months. At the end of the ‘hire’ period you have the option to buy the bike from your employer.
You save because repayments are deducted from your gross salary so you pay less income tax and National Insurance. Employers benefit from worthwhile National Insurance Contribution savings too.
What happens at the end of the period?At the end of the 12 month hire period, Cyclescheme take on all further administration and ensure ownership can be transferred from your employer to you at a fraction of the bike’s original cost with an Extended Use Agreement, approved by HMRC.
You pay a small, one-off, refundable deposit (3% or 7%* of the equipment value) and continue to use the bicycle for an extended period of 36 months. Monthly payments during this period are zero.
At the end of this period, if you don’t want to keep the bicycle, it can be sent back to Cyclescheme and the deposit will be refunded in full. No further action or payment will be required if you wish to keep the bike. Cyclescheme retain the deposit, and confirm you as the owner of the bike.
* The lower figure is for a Certificate value of less than £500 and the higher one for a Certificate value of £500 or more. These figures include VAT. Contact Us For More Information