Cycle To Work

Cycle To Work Scheme

Bike to Work Schemes

The Green Bike Company participates in the Bike to Work Scheme.

The Benefits of the scheme for an Employee are:-

Buy any bike you wish and save up to 50%
Spread the payments over an interest free period
Get healthier as you get fitter
Save on the many costs of taking your car to work

The Benefits of the scheme for the Employer are:-

Superb benefit for your employees
Encourage a healthier outlook for your teams
Save on NI contributions
Need not have any cash effect on your business

Contact us if you would like to discuss this benefit for your employees on:-

enquiries@thegreenbikecompany.co.uk

The principal of the scheme is that in order to promote healthier journeys to work and reduce environmental pollution , the 1999 Finance Act introduced a tax exemption which allows employers to loan cycles and cycle safety equipment to employees. This was part of the Government Green Transport plan.

By using a Salary Sacrifice Scheme your employer can spread the costs of a bike and it's safety equipment up to the original retail value of £1000 (including vat) minus VAT, National Insurance and Income Tax. This means savings of up to 50% depending on your individual tax code. The period of payments is usually 12 months, but any agreed length of time can be used*. The bike can be transferred to you for ownership at the agreed market value percentage. The longer you leave the period before you take ownership of the bike the lower this percentage will be*.

The Green Bike Company does this by working with a number of providers who make the process simple for employers and employees.

We currently work with the following providers, but please contact us if your company uses a different provider on

enquiries@thegreenbikecompany.co.uk

www.cyclescheme.co.uk
www.bike2workscheme.co.uk
www.NHSbikes.co.uk
www.cycle2work.co.uk

Any of these providers will administer the scheme for your employer if they are not registered please contact us if you need any help or advice on

enquiries@thegreenbikecompany.co.uk

We have detailed below a number of previously asked Employee and Employer questions which may help you with a further understanding of this great scheme:-

Employee Questions

How much can I save? - Savings depend on your personal taxation levels, employers VAT situation and how employers finance the scheme. But savings are usually between 41 and 50%.
How do I pay for the bike - Your company hires the bike to you until a final payment is made. Payments are deducted from your salary on a regular basis.
Are all employees eligible? - Not all! The scheme is open to all Full and Part time employees who are contracted for more than the period of the hire which is usually more than 12 months. You need to be a UK taxpayer via the PAYE system. You need to earn more than the minimum wage.
How often does the bike have to be used for work? - There is no requirement for you to use the bike for a specified number of days. There is no requirement to record your journeys. You can use the bike for your own personal use. However, for at least 50% of the time you are using the bike you must be on a qualifying journey which involves your journey to work.
What happens at the end of the hire period? - It is your employers choice whether they opt to sell you the bike at the end of the hire period. In practice they bike becomes yours based on a final purchase fee which is calculated on the market value percentage. The longer you keep the bike the smaller this percentage fee is!
Can I benefit from the scheme if I am self employed - Only if you you are on the PAYE system.
Can my employer pass on VAT savings? - If VAT registered you will benefit from your employer claiming back the VAT.

Employer Questions

Who pays for the bike? - You as the employer pay for the bike. Finance is available for this if you should need it and can be funded from the savings made on the bike meaning no cost to you as an employer.
Is the administration complicated? - NO!! The providers we us make the whole registration and administration simple and it is easily and securely monitored on-line.
Who is responsible for the bike during the hire period? We encourage the employee to insure the bike and the bike is covered for 12 months via the manufacturers warranty.

*see your scheme provider for further details