- Who is Bike2Work Scheme?
We are a HMRC approved scheme provider of the Governments Green Transport Plan which aims to reduce environmental pollution, promote healthier lifestyles, and make cycling to work cost-effective by offering tax savings on bikes and cycling equipment. Our scheme makes it simple for Employers and Employees to take full advantage of the Government approved Cycle to Work scheme, providing all necessary paperwork and promotional materials completely free of charge. We offer a partnership of over 2,200 partner bike shops including a selection of online stores.
- Who is eligible for the scheme?
All company Employees qualify for the scheme, providing that they are UK taxpayers via the PAYE system and over 16 years of age. Earnings must remain above the level of national minimum wage after the salary sacrifice has been deducted. Employees under the age of 18 would need a guarantor to be able to participate. Self-employed individuals are not permitted to take part in the scheme.
- How are savings made?
The scheme allows Employees a tax exemption whereby they save on Income Tax and National Insurance contributions by having the cost of the bike/equipment deducted from their gross salary via salary sacrifice. Payment is to be made in the form of interest free weekly/monthly instalments.
- Is there a maximum spend?
Employees can spend between £1 - £1,000. If Employees wish to purchase items over the £1,000 limit they can add their own money to the order, however, this will not form part of their salary sacrifice and therefore they would only make savings on the £1,000. All equipment will remain the property of the Employer during the hire agreement, regardless if an Employee has added their own money. If a company wishes to allow Employees to purchase equipment over the £1,000 limit and make savings on the whole amount, they will need limited permission from the Financial Conduct Authority.
- What if an Employee is made redundant or leaves the business?
If employment ends before the end of the hire agreement term, then the bike/equipment will become a taxable benefit. The remaining balance owed to the Employer is to be deducted from the Employee's final net pay, ownership may then be transferred to the Employee. Please contact Bike2Work Scheme to discuss your options and for further information.
- What can Employees get through the scheme?
Employees can get more than one bike on the scheme and safety equipment which includes:
- Cycle helmets which conform to European standard EN 1078.
- Bells and bulb horns Lights, 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 and chains 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. You can also acquire articles of clothing that are suitable for cycling.
- What happens when the hire agreement / payment plan has finished?
Due to the rules surrounding the scheme, there can be no guarantee of transferring ownership to the Employee once the hire agreement has ended. However, ownership is generally transferred to the Employee at the end of the hire agreement. Bike2Work Scheme will contact Employees at the end of their hire agreement regarding the options available. The most attractive option for Employees is to pay a small refundable deposit to Bike2Work Scheme (either 3% or 7% depending on the original cost of the bike/equipment) and continue to lease the bike/equipment from Bike2Work Scheme for a further 36 months. If at the end, you decide to keep the bike/equipment, Bike2Work will retain your deposit. If not, you will need to return the bike/equipment to Bike2Work Scheme and they will arrange a refund of your deposit. You will not be charged for disposal of the bike/equipment but you will be required to arrange delivery of the items and are responsible for any cost in doing so. Please be aware, options may vary depending on when your Employer registered with Bike2Work Scheme. Please contact us direct to find out which options are available.
- Does the scheme cost anything for an Employer to implement?
The scheme is free of charge to set up and costs nothing to run. The Employer makes the initial purchase and then leases the bike/equipment to the Employee via a salary sacrifice, until the full amount is recovered. Employers typically save up to 13.8% of the total value of the salary sacrifice total per Employee in Employers NI contributions.
- Can't find what you are looking for?
You can give Bike2Work Scheme a call on 0330 088 4765 or email us on firstname.lastname@example.org.