Yes. It’s vital that you decide what to do with the bike after your tax-efficient hire period. We always recommend the ‘Own it later’ option as this ensures that you save the maximum amount of money (and save a minimum of 25%).
How does the cycle to work scheme save me money?
The saving is achieved by paying for the bike and/or accessories directly from your gross salary (before tax). This means your income tax and national insurance are based on your salary less the cost of the bike and/or accessories. Hence, the amount of tax and national insurance you pay is less.
How do I get a cycle to work voucher?
To obtain your voucher you must:
Visit your local participating bicycle shop to choose your equipment and obtain a written quote.
Go to the Cyclescheme website and request your Cyclescheme certificate.
Await the arrival of the e-voucher from Cyclescheme (this can take up to three weeks)
Do employers have to pay for cycle to work scheme?
Does the scheme cost anything for an Employer to implement? The scheme is free of charge to set up and costs nothing to run. The Employer makes the initial purchase and then leases the bike/equipment to the Employee via a salary sacrifice, until the full amount is recovered.
How much do you pay at the end of cycle to work?
At the end of the hire period, Bike to Work Ltd will contact employees to discuss the options available. The most attractive option for employees will be to pay a small, refundable deposit (3% or 7% of the equipment value*) and continue to use the bicycle for an extended period of up to 36 months.
Is the cycle to work scheme a benefit in kind?
The cycle to work scheme was enabled by the 1999 Finance Act which made the loaning of cycles and cycle equipment a tax-free benefit. Usually an employee is treated as receiving a benefit-in-kind when they are allowed to use equipment owned by the employer.
What is the cycle to work scheme limit?
The cycle to work scheme does not necessarily have a limit. This is to ensure riders can get the exact bike they need to improve their commute, for example: you may need an e-bike to beat the hills or arrive at work sweat-free, or. you might need a hard-wearing bike with a titanium frame to support you cycling 365, or.
What happens at end of cycle to work scheme?
What happens at the end of the Cycle to Work agreement? Technically, you’ve hired your bike from the scheme for the length of your agreement and you’ve got a few options at the end of it: Enter into a new agreement, paying a small deposit to rehire the bike. Give the bike back.
How do I start the bike to work scheme?
Sign up at www.cycle2work.info and complete a speedy online application. You’ll need your employer code to complete this. 3. Once your employer has approved your application, you will receive your letter of collection instantly by email – this is what you use to redeem your bike and accessories.
Can I buy a bike for more than 1000 on Cyclescheme?
Big news! Cyclescheme is no longer capped at £1,000. Budding commuters can now save on the exact bike, components and accessories they need to cycle to work. So, your Cycle to work benefit is more relevant and accessible than ever!
Is the cycle to work scheme monitored?
A ‘qualifying journey’ means you must use your bicycle for all or for part of your journey to work. You must also state in writing that the bicycle is for your own use and that it will be used for work. But don’t worry, nobody is required to monitor the bike’s usage.
How long does the cycle to work scheme take?
How long does the cycle to work scheme take? The cycle to work scheme usually takes 3-14 days from application to redemption. The length of time it takes to go from doing your application to getting your bike and/or accessories can vary; many employees can collect their cycle to work packages directly after being approved. However, some applications may take longer.
Can you buy a canyon on cycle to work scheme?
Canyon has paired up with a cycle to work scheme provider to allow customers to purchase their bikes through the tax saving programme. The German bike manufacturer has chosen the Green Commute Initiative (GCI) as its provider.
What is the cycle of work?
work cycle. Sequence of activities and movements (constituting the elements of a job) which are repeated with little or no variation each time the job is performed.
What is a work scheme?
A scheme of work is a plan that defines work to be done in the classroom. Involving learners in defining a scheme of work, whether for a short project or a long course, is an important step towards motivation and involvement.