A Guide to Cycle to Work Schemes

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Cycle to work schemes

What is it?

Cycle to work schemes enables employees to get an adult bike and safety accessories tax-free. It was set up by the government in 1999 to ‘promote healthier journeys to work and reduce environmental pollution’.

Why choose it?

You can make savings of 30% to 50% of the value of the bike – Cyclescheme and Bike2Work have a useful online calculator to work out the savings you could make. It is a salary sacrifice, which is taken from your gross salary (before tax), meaning that you will pay less Income Tax and National Insurance.

What do I need to do?

STEP 1

Choose your bike and equipment, either in store or online (www.decathlon.co.uk), up to the value of £1000. We can advise in store which bike would suit your needs best and the size required as well as giving advice on suitable accessories. If you are ordering online, make sure you check our size guide. Two of our most popular bikes are the Triban 520 Road Bike and the Rockrider 540 Mountain Bike.

cycle to work schemes STEP 2

You must then sign up with your cyclescheme provider. For Cyclescheme, you need the code for the store (you can find the code for the store on their website by searching for a retailer) and your employer’s unique code. For Bike2Work, you can register using your employer’s pin. If your employer isn’t signed up, they can do so easily through the Cyclescheme/Bike2Work etc website.

To request a certificate, you can come in store for a written quote (which you will then submit manually on the partner website) or you can create your own quote (including a description of the product(s) and the price) through the provider website by selecting the items you want from our website. Alternatively, you can simply nominate a value that can be redeemed in store. For Cyclescheme, there are 3 packages: Bike+Accessories; Bike only; Accessories only.

Please note that the quotation does not reserve the bike – you are advised to check with the store regarding availability before coming to collect the bike.

cycle to work schemesSTEP 3

Your employer must then approve your request – you can track your progress on the provider website. Both you and your employer will then need to sign the hire agreement once it has been sent to you by your cycle to work scheme provider.


cycle to work schemesSTEP 4

Once you receive the voucher, come into the store with the certificate and a form of photo ID to collect your bike – you should contact the store to ensure that they have the bike in your size and can reserve it for you. Once all the elements in your order have arrived you can collect the bike that day. When you come to the store to collect your bike, please make sure that you have the PDF and not just an email – we need information which appears on the certificate.

cycle to work schemes

Which schemes do we accept? All our stores accept Cyclescheme and Bike2Work. Some stores also accept CyclePlus and other regional schemes but you will need to check with your local store first.

How much can I spend?

Employees can spend up to £1000. If the employee wishes to spend over this amount, they can add their own money, but this will not form part of the salary sacrifice and savings will not be made on this amount. All of the equipment will remain the property of the employer regardless if an employee adds their own money. If you are only choosing equipment, there is a minimum spend of £100. You can even buy two bikes a year.

What equipment can I choose?

Bikes and safety-oriented equipment in essence. To be more specific: Cycle helmets which conform to European standard EN 1078; Bells; Lights (such as the b’Twin VIOO 720 USB Front Bike Light), including dynamo packs; Mirrors and mudguards to ensure riders visibility is not impaired; Cycle clips and dress guards; Panniers, luggage carriers and straps to allow luggage to be safely carried; Child safety seats; Locks (such as the Abus Bike D Lock) to ensure cycle can be safely secured; Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs; Reflective clothing along with white front reflectors and spoke reflectors. It is the employer’s choice what safety equipment is offered, but you may wish to confirm with your local tax inspector whether the equipment you provide falls within the tax exemption.

How much can I save?

Typical savings are between 30 and 50%, but it depends on your personal tax band and the way your company runs the scheme. Deductions are made from your gross salary, so you make income tax and national insurance savings of 32% if you’re a standard rate tax payer or 42% if you’re a higher rate tax payer.

How does it work?

You pay back the loan on your bike and equipment typically over 12 or 18 months in equal installments. This will be deducted directly from your salary.

Can I use my voucher to get a bike for someone else? Due to the tax exemption, the bike and equipment chosen must be for personal use. The voucher is exclusive to the employee and non-transferable.

Can I have two schemes running at once? Yes, as long as the total of both do not exceed the £1,000 limit (unless your employer has a consumer credit agreement).

Who does the bike belong to?

The bike/equipment belongs to the employer (who purchases the bike) and the employee leases the bike from the employer for the duration of the salary sacrifice period. You cannot sell the bike during this period. You cannot get a refund from the store during this period until you take full ownership of the bike after which you statutory rights resume.

What happens at the end of the hire period?

At the end of the scheme, you have 3 options: Return the bike and equipment to your provider and start another scheme; pay a final one-off ‘Fair Market Value’ payment to purchase the bike; pay a small, one-off, refundable deposit to extend the use (under £500, 3% or over £500, 7%) and continue to use the bike and equipment for a further 36 months, at which point ownership is then transferred to you at no extra cost. If you decide you do not want the bike, it should be returned to your cycle scheme provider who can dispose of it as they see fit; please note that you will be responsible for postage and packing. For the Bike2Work provider, options may vary according to when your employer registered with them and you will need to contact them for more details.

Who is responsible for maintenance and insurance?

During the hire period, you are responsible for the maintenance and safety of your bike. Most home insurance policies cover bicycles up to a certain value (please check with your insurer). We stock a range of maintenance tools and our workshop can also help you keep your bike in good working order including a free maintenance check in store anytime within the first 3 months of purchase.

For more information on the different schemes, visit

 

 

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