Cycle to Work Schemes

... to mention some of many.

Some information about the Cycle to Work Programmes that are out there. You may likely have heard of them, but are maybe unsure of what is involved. To purchase a bicycle on some of the scheme we may ask a small comntribution towards the administration cost we are charged by the Programme administrator. Hopefully some of the information below will help you understand the Programmes available and how they may benefit you!

The main Cycle to Work operators are CycleScheme, Green Commute Initiative, and Gogeta. The questions below are based around the Cyclescheme policy, other operators may vary slightly, but the general rules are the same. Following this feature is the way Gogeta explains their scheme.

- How does this work?

Find out if your employer is signed up to a Cycle to Work Scheme, if not, don't read any further, you might just get bored! or do read further and persuade you employer to get on board -the process to get on board for an employer is not very complex as the Scheme operators are keen to help!

If your Employer is signed up to a scheme you can come by and look at what bike is most suitable for you, we then fill out a quotation with you.  This can also be done by yourself at home, but we have a lovely fireplace here, a great coffee machine, a fine kettle, and usually a cupboard full of biscuits so why would you want to fill in forms anywhere else?! 

Then take your quotation to the HR or Personnel department at your place of employment and they will process it for the next phase.

- How long does it take before i can pick up my new bike?

It can depend on your Employer and what they have set in place, but generally, it can a few weeks for everything to be processed.  In that time we will build your bike up in the shop and fit any accessories to it, then when your certificate comes through, you can drop in, (with a valid for on Identification, passport, driving license etc), get set up on the bike and ride away! (or put it in the back of the car!)

- The Big Question: How much do I actually saving?

This is really down to how much you earn and what the value of your certificate is.  But generally your likely to save between 30% to 40% off the RRP value of the Items.

We've put a table together to give you an idea of the savings to be made:

A Quote based on the following items;
Ridgeback Urban Hack (£899.99)
Met 20 Miles Helmet (£39.99)
Bike Lights (£60.00)

Total Price: £999.98
Cost after savings for higher rate tax payer:
Cost after savings for basic rate tax payer:
Example Savings
40% tax, 2% NI
20% tax, 12% NI
Package RRP
Incoming tax and NI saved
Monthly hire payments (before tax)
Monthly hire payments (take home pay)
Percentage saving

- What happens after twelve months?
You're technically hiring the bike from CycleScheme for 12 months Cyclescheme will be in touch  after this period you have a few options...
Option One: Enter into an Extended Use Agreement (EUA).  You'll pay a one-off deposit of 7% of the voucher value (3% for vouchers below £500 in value).

This option then allows you to continue to ride the bike for the next 3 years, which, by the end of, the HMRC believes its value is then equal to the deposit you originally paid when signing up to the agreement. CycleScheme will contact you to after this time to ask if you want to return the bike or keep the bike for the deposit you paid.

Option Two: You can return the bike to the CycleScheme

Option Three: You can purchase the bike from CycleScheme for 25% of the vouchers value i.e £250 on a £1000 voucher (if the voucher is less than £500, it would be 18% of the value, £90.)

- Can I get any accessories on the scheme?
You sure can, if they are deemed to be eligible for the use. i.e. helmet, mudguards, lightsets, weatherproof clothing.  The kind of items that will enhance your cycle to work.

Here is the explanation as per the Gogeta website:

What is the Tax free bike scheme

The Tax free bike scheme was introduced by the UK Government to encourage greater participation in cycling.

The Tax free bike scheme enables employers to offer their employees the opportunity to get a bike and cycling accessories via their salary.

This means the employee reduces part of their gross salary before tax, in exchange for a bike and accessories, and benefits from not paying Income Tax or National Insurance on the value of the bike and gear.

Employees can use the bike for commuting as well as for leisure.

Cycle to Work savings are typically 28% - 48% depending on your earnings.

The scheme also acts as a form of interest free loan via salary, to further improve the affordability of getting a new bike. Neither the employer or the employee is required to keep a log of their use of the bike.

Gogeta is one of Bikeseven's preferred cycle-to-work partners. Visit their site for more information

Thanks to the low cost of accepting gogeta vouchers, we do not include any surcharges, which mean gogeta customers enjoy the best savings. Maximise savings with one of the UK’s most generous schemes

In addition to the tax savings, gogeta enables access to sale prices and discounts that are not usually available to Cycle-to-work buyers. Total savings are often in excess of 50%.

Access to the best deals. No final transfer fees. No surcharges. No hidden fees. Plus gogeta flexi vouchers

All vouchers issued by gogeta can be spent flexibly over 12 months. Unlike other providers’ vouchers they don't have to be spent in one go.

This means that you have more control over what you buy and when. You could get a bike in the summer. Lights in Autumn. Gloves in winter. All on the same voucher. And across as many transactions as you like. With a gogeta flexi voucher you could make your whole year’s spend on cycling tax-free. Find more info here

The list of things you can't apply for under the scheme may be longer; kids trailers, servicing, spare wheels, turbo trainers, GPS computers or anything race related.  But then the journey to work isn't a race!  The schemes are there to get you a great bike at an affordable price, if you want to be a weekend racer, save your pennies for that Ridley Noah, or Felt F-Series!

There are quite a few schemes operating at the moment, but we work with the main provders out there at the moment:
- CycleScheme ( Original scheme operated by Blackhawk for employees of eg NHS, County Councils, Contabularies etc)

- Gogetta (recently launched with easy access for different employers)

 - Green Commute Initiative (the not for profit cycle scheme with higher lever of acceptance, genuinely trying to  increase the number of cyclists)

 - Halfords Cycle2Work (for employees of eg Carlisle City Council - also with various other schemes under separate names)

- Bike2Work (for Smaller companies, organisations and the Self Employed)

- BiketoWork (for employees for Irish Companies)

- Cycle Solutions (scheme operated by private cycle store similar to Halfords)
-  etc etc.

As employer why not enquire with Green Commute Initiative? Good for all.