In order to encourage healthy active lifestyles and reduce environmental pollution the Government in the UK introduced Cycle to Work Schemes. Basically these schemes let you offset the cost of a bike in monthly amounts that come out of your earnings BEFORE tax and National Insurance deductions. thus saving you money as well as the added health and environmental benefits.
How Does It Work!?
What are the steps to getting your Cycle Scheme bike?
1.Firstly find out if your company is signed up to any of the Cycle Schemes.
2.Drop in or call our shop to talk through your needs with a member of the team.
3.We will give you a written quote for your chosen bike, plus any accessories such as Lights, Helmets, Locks etc.
4.You submit your written quote to your HR department who will either process it for you or advise of a website for your companies particular chosen Cycle Scheme where you can enter these details yourself.
5.In a short time, you will receive two emails/letters the first will be a Letter Of Acceptance¯, this tells you that you are no signed up to the scheme, it is usually a good idea to give us a call as you get this so we can beginning getting your bike built and any accessories you chose, fitted.
6.You will shortly after this receive a second letter/email, this will be your Letter Of Collection, simply print out this certificate and bring it into our shop to exchange it for the bike you have chosen and any accessories.
7.The employer loans the bike to the employee for an agreed period. This hire period is normally 12 to 18 months. The employee pays hire charges to the employer through a salary sacrifice arrangement for the duration of the hire period.
8.As a result of the salary sacrifice arrangement the employer saves the Employers NIC (generally 12.8%) of the salary being sacrificed.
How Much Will I Save?
The saving you make will depend on the value of the bike you choose and which tax band you are on usually the saving falls into the 18%to 42% category off full RRP.
How much can I spend on the Cycle to Work Scheme?
Normally employers sign up to a figure in the range of £300-£1000 , if your needs differ, please don't hesitate to call or drop in to our shop to discuss your options.