The government led cycle to work scheme enables employees to get a tax free bike, saving on average about half the cost.
Within the Government’s Green Transport Plan, there’s a tax exemption which allows employers to provide cycles and safety equipment to employees as a tax-free benefit. Technically speaking, employees actually hire the bicycles from you, buying them at the end of the salary sacrifice period for a Fair Market Value payment. Cyclescheme will collect this Fair Market Value payment for you, and we can also offer highly competitive finance packages from well known providers.
The employer buys the bikes and safety accessories at full retail price. The balance is recovered from a reduction in the employee’s gross salary, and employers also benefit from National Insurance contribution savings. The net result? You save money on every bike you process through the scheme!
Cyclescheme, the UK’s leading provider of tax-free bikes for work. They pride themselves in giving the customer the best service available with the minimum of administration. Their scheme is run in strict accordance to the government’s green travel plan and conforms to the requirements of the HMRC, OFT and DfT. They also provide Hire Agreements for employees and a free secure website for Certificate processing. This extranet site is password protected and enables both the shop and the customer to manage employees’ applications with the click of a mouse.
How does the Cycle to Work Scheme Work?
How it Works?:
- Your employee individually gets a quotation at Moonglu.
- The employee requests a Certificate through the Cyclescheme website.
- You approve the request. Cyclescheme sends you an invoice for the bike package, and a Hire Agreement is sent to the employee to digitally sign.
- The same day the package is paid for, an eCertificate is sent to the employee, within 15 minutes of Cyclescheme receiving funds.
- The employee contacts Moonglu to arrange collection or delivery of the package.
- The cost of the package is deducted via salary sacrifice. At the end of the hire period, the employee pays a Market Value payment to make the package their own. Cyclescheme can collect this payment for you.
- Savings when using Cyclescheme's End of Hire process are at least 25%, with no additional fees. You can watch our End of Hire animation here.
- The scheme is available to UK tax payers who pay PAYE. Self-employed workers are unable to take part in the scheme.
There's an End of Hire Process video below
We have included a Cycle to Work scheme savings calculator below to show the savings that could be made. The good news, it's not just bikes, you can include accessories such as clothing, lights and luggage.