CYCLE 2 WORK has so many ADVANTAGES...

There are many ways in which these schemes are referred ie. Bike2Work, Cycle2Work, Ride2Work, Bike Schemes, Cycleschemes etc. but they all follow the same route as is determined by HMRC and OFT in accordance with any other Salary Sacrifice Scheme.

Please have a look at the information below and for greater detail go to the providers website by clicking on their logos. If you require more information from us, or you would like us to contact your company in the first instance, then please complete the contact form below with relevant details.

Remember we are one of Derbyshire's longest established cycle stores with a fantastic range of bikes from Specialized, Cannondale, Pinarello, Trek, Cube, Ridgeback, Brompton, Pashley, Raleigh and Dahon. We have a dedicated workshop with Cytech trained mechanics and experienced sales staff, to ensure you have the very best experience on your commute to work, due to the correct advice given when choosing your bike.

FOR THE EMPLOYEE:

Save up to 42% on the cost of a new bike and equipment

Cost is usually spread over 12 monthly interest free payments

Save money on travelling costs

After sales service from chosen bike shops

Reduce your carbon footprint

Lose weight and tone up

Improve your general health and well-being

Improve mental health and help reduce stress levels

Look good, feel great, save money and help save the planet!

FOR EMPLOYERS:

Fitter, healthier and more productive staff

Healthy staff are less likely to be absent through stress or illness

Savings on employers NI contributions (up to 13.8%)

Reduce your business carbon footprint

Scheme administered for you at no cost to your company

Cycling to work reduces congestion and demand for parking

Scheme is an attractive benefit for employees

Click on a logo below to find out more about that particular scheme or please click on the link below asking for more information from ourselves. The providers below take on most of the administration and ensure you have a smooth running scheme for you and your employees to benefit from. It is important that you fully understand the process and that you find out from the providers below as to what happens at the end of the hire period.

There has been much talk, and often misgivings about the recent changes in the scheme, but you can still save up to 42% depending on your individual tax situation, and on which option you choose to take at the end of the agreement.

Please click above logo to explore their website and use their on-line calculator to see what your monthly costs will be for your new bike.

Cyclescheme

Cyclescheme, the UK’s number one provider of tax free bikes for work through independent bike shops. They pride themselves in giving you the best service available with the minimum of administration. Their scheme is run in strict accordance to the government’s green travel plan and conforms to the requirements of the HMRC, OFT and DfT. They also provide hire agreements for employees and a free secure website for certificate processing. This extranet site is password protected and enables you to manage employees’ applications with the click of a mouse.

Sounds confusing?

Here’s an example of how the savings work during the hire period, assuming the following:

Employee is paid monthly
Employee is a standard rate tax payer requesting a £500 Certificate
The hire period is 12 months
The Employee’s monthly gross salary is £1,200.00 (£14.400 per annum)

	Salary before scheme participation	Salary during scheme participation
Monthly Gross Salary	£1,200.00	£1,200.00
Bike value including VAT Gross salary sacrifice total		£500.00 £500.00
MONTHLY GROSS SALARY SACRIFICE = £500 / 12 months (this amount appears on the hire agreement)		£41.66
Monthly Gross Salary after salary sacrifice Monthly NIC contribution (12%) Monthly income tax contribution (20%) Net Salary	£1,200.00 £144.00 £240.00 £816.00	£1,158.34 £139.00 £231.67 £787.67
MONTHLY NET SALARY REDUCTION	£816.00 minus £787.67=	£28.33
MONTHLY SAVING	£41.66 minus £28.33 =	£13.33

So, because the participants pay less income tax and NIC their NET salary reduction is less than the GROSS salary reduction, and this is how savings are achieved. In this example, the employee makes a £41.66 contribution to the employer, but it only costs them £28.33, resulting in a saving of £13.33 per month.

HMRC - Market Value Clarification (Cyclescheme)

At the end of the hire period ownership of the bike passes to Cyclescheme who then contact employees detailing three options:

1. Under a separate agreement with Cyclescheme pay a small refundable deposit (3% or 7% of the certificate value*) and continue to use for 3 years. The monthly payments are zero. At the end of this period, Cyclescheme refund the deposit if the employee does not want to keep the bike. No further action or payment is required if they wish to keep the bike.

2. Take ownership of the bike by paying Cyclescheme a much higher valuation eg for a one year old bike this would be 18%* or 25%* of the certificate value in accordance with HMRC requirements

3. Return the bike to Cyclescheme.

* the lower percentage is for bikes with a certificate value less than £500 and the higher percentage is for bikes with a certificate value of £500 and over . These figures include VAT.

Please click above logo to explore their website and use their on-line calculator to see what your monthly costs will be for your new bike

Please click above logo to explore their website and use their on-line calculator to see what your monthly costs will be for your new bike.