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!
