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Cycle Scheme Information ..

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**Use the calculator to work out figures for yourself at http://cyclescheme.co.uk/employee,calculator.htm


How can I buy a bike for less? 

For employees who use a bike or electric bike to get to and from work, the government have designed a way to enable commuters to
obtain a tax-free bike from their employer.  And if your employer isn't yet part of the scheme, then ask them to sign up to it ... the
only mandatory requirement is the purchaser is on a PAYE scheme though their employer.

The employer purchases the bike and then loans it to the employee, who compensates the employer through monthly deductions
from his/her salary. No VAT, Income tax or NI is payable on the bike so the savings are substantial.*

At the end of the period normally 1 year to 18 months the second-hand bike is “disposed of” usually to the employee, if required,
for a nominal value.

 

What are the benefits?

• Save up to 50%* on the cost of a bike and safety equipment
• Pay monthly and save VAT, National Insurance and Income tax
• Get any make or model of bike from your local shop
• Save your employer money as well through NI savings
• Our secure extranet website means minimal hassle

How does it work?

This is an example of how a higher rate tax payer can save 50% on a £1000 bike package hired over a 12 month period:

• Bike package retail price (inc VAT) £1000
• VAT saved £148.94
• Income tax and NI saved £348.96
• Monthly repayments £41.84
• Total bike package price £502.10

[N.B. This is ONLY an example and not a quote. Please check with your local retailer for more detailed information or check using their calculator system at ** http://cyclescheme.co.uk/employee,calculator.htm .  *Please also be aware that savings are affected by a company's tax status, finance arrangements and your personal level of taxation.]

What do I do next?

• Talk to your employer and get them to agree to use Cyclescheme
• Choose your bike at a local participating cycle shop who will then issue you with a quote
• You enter a quote on a secure extranet site
• Your employer authorises the quote for you
• Cyclescheme issue a secure voucher which you can use to collect your bike

Check out http://www.bikeforall.net/content/cycle_to_work_scheme.php as well .... and http://www.ordnancesurvey.co.uk/oswebsite for online maps once you have your bike, to help you with your route planning!

Flexible, affordable and tax-free with cyclescheme.co.uk

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DISCLAIMER:  Whilst every reasonable care has been taken to ensure accuracy of information provided on both this page and website, we cannot be held responsible for any errors in or omissions from the given text