Cyclescheme upper limit increase - 29th May 2020
From 1st June 2020, the upper limit for Cyclescheme for NHS GGC will increase to £4,000, meaning even more people can become regular cyclists and afford higher-priced items like e-bikes and have the opportunity to explore cycling as an option for their commute.
With the upsurge in cycling, many retailers are experiencing issues with stock of certain bikes. Please check with your preferred retailer, before finalising your loan amount to ensure they have the bike you want in stock.
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.
1. It’s here to stay; the scheme is effective and will continue to run
2. You can now save on bikes of any value using the scheme
3. You can now get any accessories and components you need to stay in saddle
- 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.) For example – prior to this change if you wanted to get a £1,500 cycle to work package you would have requested a certificate for £1,000 and added £500 of your own funds. This would have resulted in a standard rate taxpayer saving £250 (inc. an ownership fee). Now, you would save £375 (inc. an ownership fee). Everything you need to stay in the saddle:
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.
How To Apply
- Visit here in order to find a Cyclescheme retailer you wish you shop with and get a quote for your desired bike package, alternatively if you know how much you want to spend just apply for that amount.
- Visit the Cyclescheme website here and enter the required details - you will also need to agree to and sign your online Salary Sacrifice Agreement as part of your online application.
- Travel Plan Office will review your application and approve or decline it.
- If approved you will receive an email from Cyclescheme to start the Sign & Collect process and at this point you will need to confirm which Cyclescheme retailer you are using.
- You will then receive your Certificate number and Redemption Code by e mail. Take this in-store to your chosen retailer/or follow the online retailer process steps and redeem for your Cyclescheme package.
- Whilst you are in store the retailer will redeem your certificate. They will then send you an SMS with a link to sign your Hire Agreement. Once completed you can head home with your new cycling gear.
- Payments will be deducted from your weekly/monthly salary over 6 or 12 months, usually beginning the month following application.
The only items you’re not allowed to save on are:
· GPS ride trackers and navigational computers
· Cameras (such as GoPros)
· Car bike racks
· Turbo trainers or rollers
End of hire agreement.
At the end of the hire period (12 months), Cyclescheme will contact employees to discuss the three options available.
- 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.
- Hand back the bike and or equipment (not recommended)
- 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]