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Cycle to Work Scheme

www.cyclescheme.co.uk/6b370

Driving to work can be slow, stressful and expensive, as well as being bad for the environment.  Why not take to two wheels and relish the ride?

Cycling is not only good for your health, it saves you time and money and is much better for the environment. Through Cyclescheme you can save between 25-39% on a brand new bike and accessories and spread the cost over 6 or 12 months through your salary. 


Benefits

  • Save money on the cost of a brand new bike and equipment, average saving is around 32%*
  • Get Fit by cycling to work.
  • Lose weight.
  • Reduce your individual carbon footprint.
  • Save money on your regular fuel bill.
  • No stress having to find a parking space.
  • Good scenic cycle routes away from the congested main roads.
  • Easy to use online scheme
  • Have a new bike and/or equipment within 14 days.

Scheme Description and Application Process Explained

The Cycle to Work scheme is a salary sacrifice scheme, this means that instead of making a 'direct' saving on the purchase you make the saving on your tax and NI contributions as the monthly deductions come off your gross wage (pre tax & NI.)  Maximum certificate value £1000 for bikes and/or equipment. 

Alternatively, please click here for a video explaining the application process.  


In order to be eligible for a Cyclescheme voucher

  • The deductions must not take you below the lower earnings limit.
  • You must also be employed by Greater Glasgow and Clyde for the period of the hire agreement (6 and 12 month hire options are available if staff are on a contracted post).
  • Not be within 2 years of retirement. 

Cyclescheme upper limit - Message from Cyclescheme; 12th September 2019

In June 2019, Cyclescheme updated guidance for cycle to work schemes. The main purpose of the update was to lift the existing £1,000 purchase price cap, meaning even more people would become regular cyclists and could afford higher-priced items like e-bikes.

As a founding member of the Cycle to Work Alliance (C2WA), we’ve been working towards an update like this for two years, in partnership with the Department for Transport (DfT), Financial Conduct Authority (FCA), and other members of the C2WA.

However, the specific guidance that’s been produced contains some ambiguous wording, making it difficult to act on under existing legislation. The key things you need to know:

  • Cyclescheme will not implementing the new guidance until these ambiguities have resolved
  • Cyclescheme is consulting with external lawyers to ensure that our interpretation of the guidance is correct
  • In the meantime, our current scheme will continue to run and remains fully compliant, so neither you nor your employees need to do anything differently.

Throughout August and September, our product and legal teams have been interpreting the new guidance with the support of external lawyers and the services of a highly experienced QC (a barrister appointed by the Queen). We are confident that the time and effort we have invested in understanding the guidance properly will pay dividends for you and your employees in the long run. Right now, Cyclescheme is simply not willing to offer you a solution that is anything less than perfect.

Although we've not yet made timescales publicly available, we're pleased to note that an updated delivery timeline will be released soon. We know the delay may well be disappointing for you and your employees and can assure you that no one is keener to implement the new version of the scheme than us. We’re working hard to achieve the change we all want as quickly as possible.

How To Apply

  1. Visit the Cyclescheme website in order to find a bike shop in your area that is part of the scheme.
  2. After you have found the right bike and supplier for you, ask them for a cyclescheme quotation form.
  3. Once you have the quotation form, enter your details into the online application form found on the Cyclescheme website (about half way down the page on the left hand side click the link 'Request Your Certificate).  If required, our employer code is 6b370.
  4. You will sign your hire agreement during the online application process electronically.
  5. Travel Plan Department review your application and approve or decline it.
  6. Once approved, you should receive your certificate in around 7-10 days, longer if you choose a paper certificate.
  7. Contact the supplier to make sure your bike is ready for collection.
  8. Take the e-certificate/paper certificate to the supplier in exchange for your bike and/or equipment.
  9. Payments will be deducted from your weekly/monthly salary over 12 months, usually beginning the month following application.

End of hire agreement.

At the end of the hire period (12 months), Cyclescheme will contact employees to discuss the three options available.

  1. The most attractive option for employees and the one that NHSGG&C would always recommend will be to pay a small, refundable deposit (3% if under £500 or 7% if £500+ of the certificate value) and continue to use the bicycle or safety equipment for an extended period of up to 36 months upon which time the bike and/or equipment will be transferred to you.
  2. Hand back the bike and or equipment (not recommended)
  3. Pay the HMRC set fair market value, 18% if under £500 and 25% if £500+ (again, not recommended) which would make the bike/equipment 'yours' after 12 months however this reduces drastically the savings made through the scheme

More information on the end of hire process can be found here

For more information contact Cyclescheme on [email protected] or e-mail [email protected]