- For most purchases we recommend you ask your employer to set up an internal Cycle to Work Scheme for your workplace. It is simple, free, and avoids paying any fees. (However, there may be a £1,000 price limit per bike unless your employer is registered with the FCA).
- We can also accept vouchers from many popular cycle scheme providers – see the list. They charge a commission between 6% and 15%, and we cannot afford to absorb this cost for you – if we did we would make a loss on the sale. (We do not make any extra money on the purchase, the fee simply covers the commission that these companies charge us).
For a basic rate taxpayer using the Green Commute Initiative*:
|Normal price of bike||£500|
|plus cycle to work scheme fee**:||+ £30|
|plus end-of-hire fee***:||+ £1|
|minus your tax savings:||– £169|
|Total cost||= £362|
|net monthly salary sacrifice:
|| £30.17 (over 12 months)
|saving compared to normal price:||27.6%|
*Only available if your employer is signed up to one of the above schemes, or runs an in-house cycle scheme. The exact saving varies depending on your level of income tax and National Insurance, the end-of-hire fee, and exactly how your employer administers the scheme, please contact your employer for details.
** All third party cycle scheme providers charge a fee which we pass on to you. However, the tax savings available more than compensate for this cost – see the above example. GCI charge a 6% fee. Most other schemes charge a 10% fee. The Halfords Cycle2Work, FairCare and SMEHCI fees are 15% so we recommend using a different scheme if you have the choice. If you would like to avoid the fees altogether, please ask your employer to set up an internal Cycle to Work scheme – see above.
*** Most employers have to charge an end-of-hire fee to transfer the ownership of the bike into your name once your monthly payments have finished. The older the bike the lower this fee, so we suggest deferring this payment for 3 years. For example, see www.cyclescheme.co.uk/help/endo-of-hire-process-video