Cyclescheme

Who are Cyclescheme?

Cyclescheme is an independent company created to help employers and employees make the most of the Government's Green Transport Plan Initiative. We use our industry experience to get you the bike you want from a local bike shop. We are independent and can supply the right package of bike, accessories and safety equipment for everyone.

Employees paying PAYE, who have a contract that outlasts the duration of the salary sacrifice period are eligible, provided they are over 18 years old, earn more than the National Minimum Wage after the loan repayment has been deducted, and have completed the employer's probationary period (if applicable).

With a salary sacrifice you pay back the loan on your bike, accessories and safety equipment from gross rather than net pay for the hire period (usually 12 months), allowing you to benefit from income tax and NI relief.

Typical savings are between 30% and 50%., but the actual amount you pay depends on your personal tax band, and the way your company runs the scheme. Higher rate taxpayers will save more, employees whose company cannot reclaim VAT (the NHS, for example) will save less. If the employer uses external finance (ie your employer borrows the money to buy the bikes from an outside agent) then savings are normally about 5% lower. Finally, the fair market value payment needs to be taken into account when calculating the total savings.

Calculate my savings

You can choose any bike, providing we can supply it. Please note that if you are ordering a sale or offer bike an administration fee will be applied to your quote because the profit margins are much, much lower than those available on standard retail priced models. If your employer wants to supply bikes costing over £1000 (retail price including VAT) then they will need a Consumer Credit Licence, and this costs £725, so many employers limit the package value to £1000.

The bike and goods remain the property of your employer until the hire period finishes, unless your employer uses finance; in this case the finance company will own the bikes during the hire period. At the end of the hire period you may be given the opportunity to buy the bike for a fair market value payment. If the bike gets stolen you will be liable for any outstanding monies without any tax exemptions, so it's very important to make sure the bike is insured. You can obtain safety equipment, including Home Office-approved 'Sold Secure' D-locks and cable locks, as part of the scheme.

Most employers opt to sell you the bike and accessories, and you will pay the fair market value; this is the amount that a buyer would pay to a seller to purchase the bike and equipment. Each bike is assessed separately, but in our experience the market shows values to be around 5% of the original voucher value plus VAT. The fair market value cannot be stated before or during the scheme as this could be considered a benefit in kind as hire-purchase does not warrant any tax-relief.

What's the process of getting a tax free bike for work through Cyclescheme?

The scheme uses a voucher system. Once your employer has entered into a contract with Cyclescheme, you need to sign an employee hire agreement that we supply or agree to the terms of the hire agreement online (this process is determined by your employer). You visit your local bike shop for a quote on a bike and accessories, which you enter onto our extranet system. When we receive the quote we will invoice your company, and provide a secure voucher once the hire agreement is signed. You take the voucher back to the bike shop to collect the bike.

You can use the bike however you like; a bike purchased under Cyclescheme should be used for work journeys at least 50% of the time. You don't have to cycle to work for a specified number of days throughout the year and you don't have to record your trips or mileage. You may not claim expenses for business trips made using the bike until the end of the salary sacrifice period.

Your Household policies are usually the cheapest option but you must ensure that the insurer covers the bike when in storage away from your home, and that the bikes value doesn't exceed the upper claim limit. If the bike can't be covered on your home insurance, we recommend Cycleguard for insurance

• Simply place the items you require in your basket and proceed to our checkout.

• Enter your name and address details in the spaces provided.

• In the 'Additional Comments About Your Delivery/Order' box you must state you are using the Cyclescheme as your method of purchase and supply your employers name

• Select STANDARD ORDER as your payment method - This method requires no payment details to be given

Ordering a sale bike on the Cyclescheme?

Please note that if you are placing an order for a sale or offer bike using the Cyclescheme an admin fee must be applied - this is due to the Cyclescheme taking a comission of 10% on every purchase made using this scheme. If a sale bike is ordered, the quotation form that we e-mail you will be 'grossed up' to include this amount - an example is shown below

You place an order for a 2009 Kona Caldera - currently on offer at £549.95, an admin fee of 11% is applied taking the total price that we use on the quotation form to £610.44, Cyclescheme take their comission of 10% from this figure leaving a total payable of £549.39 to us (Pauls Cycles).

As with all sale items, there is usually a very limited quantity available, your order will reserve stock of your chosen items for a MAXIMUM of 14 days from point of order - This time will allow for you to present your employer with our invoice and for you to send us your Cyclescheme voucher through the post

Please also note that if purchasing a bike at the full RRP, then no admin fee will be applied

What happens next?

Once we have received your order we will send you your unique Cyclescheme quotation form (see picture right) via e-mail that you will need to give to your employer

Your Cyclescheme quotation will look like this and will be emailed to you - This is what you need to give to your employer

Please note this is not the automated order confirmation you get immediately after placing your online order, your tailored Cyclescheme quotation will be sent typically within 24 hours and show your employers details, e-mail address and the costs of your chosen items including any fees that may need to be applied when purchasing sale items.

Your employer will then contact the Cyclescheme to arrange the necessary deductions from your salary.

Cyclescheme will then issue your employer with your voucher for the agreed amount, once you have received the voucher, you need to sign and date it where indicated - please do not fill in anything more than this. You will then need to forward the voucher to us at our shop address along with a copy of a picture id such as a drivers licence as proof of your identity

If we have not received your voucher after 14 days, your items will be returned to stock and placed on sale again

If your voucher is received after this period and the items you originally ordered are no longer available, you can still use the voucher for any other bike covered by your voucher price limit