What is the Cycle to Work Initiative?
The Cycle to Work Initiative is a Government back scheme to provide tax-free bikes. It’s a brilliant programme where everyone wins – employees make big savings on new bikes, employers get a healthier workforce and save money too! You can even get an electric bike on the scheme to make your commute easier.
There are numerous providers of the government-backed cycle to work initiative such as Green Commute Initiative
Green Commute Initiative is a Social Enterprise with a vision to get commuters out of cars and onto any kind of bike, with the dual purpose of improving both the individual’s health and wellbeing, as well as reducing the environmental impact of pollution and congestion from cars.
We also accept Cyclescheme, Cycle Solutions, Halfords, etc and generally able to accept vouchers from any provider. Please get in touch for confirmation.
How it Works
The cycle to work scheme is a government initiative which allows employees to hire bicycles tax-free from their employers using salary sacrifice. As the payments into the scheme are made before tax and national insurance are calculated this leads to potential savings of up to 42%
In essence your employer buys the bike and accessories for you to ride to work and you ‘hire’ it from them. The ‘hire’ period is usually 12 or 18 months with monthly payments taken directly from your payslip before tax deductions.
As you don’t pay income tax or national insurance on the scheme payments you will save between 32% and 42% (depending on your tax band) on the overall cost of your new bike and accessories. Although your employer owns the bike, effectively it’s yours to use as you wish throughout the ‘hire’ period.
How much can you save buying a bike through Cycle to Work schemes?
You can save between 32% and 42% on a new bike with the cycle to work scheme. The exact amount you can save is determined by your tax band, which is determined by your annual salary.
Here is an example: ( At the time of writing ) If you want to buy a bike for £2500 and earn under £50,000 you would pay £1700, whereas if you earn over £53,000 a year you would only pay £1450.
For a detailed calculator and breakdown please visit https://www.cyclescheme.co.uk/...
How to apply
1. Check that your employer is registered with a cycle to work scheme and make a note of the scheme name and your 'employer code'.
2. Then either come into one of our stores, visit our website or contact us to ask us for a quotation and choose what bike and/or accessories you want to buy.
3. Once you have made your choice contact us to reserve your items and provide all the information you need to make your claim. This will avoid you being disappointed if the goods you wanted sell out why you are making your claim.
4. Next visit the website for your employers chosen cycle scheme, create an account and make your claim. You will need your employer code to complete this.
5. Once your employer has approved your application, you will receive your letter of collection.
6. Finally you can then place your order online (choose Cycle to Work as your payment method) or visit one of our stores to redeem your bike and accessories. The process usually takes between 2-3 weeks.
Cycle to Work Schemes are available for mail order, however, a delivery charge of £59 will apply for bikes under £750. This charge can be included in your quotation, assuming it remains below the limit, otherwise, it must be paid for prior delivery.
For any questions regarding Cycle to Work schemes please contact us
Please Note: Cycle to Work schemes are not available on bikes that are on Sale or on Promotion unless specifically stated.
FAQ's
Is there a limit to how much you can spend?
NO. There is no longer a price limit on the cost of the bike you buy. Unless your employer has imposed their own limit.
Can I buy a bike AND accessories?
YES. You can buy a bike and associated safety equipment such as helmets, shoes, clothing, luggage, pumps, lights and locks. Prohibited items are GPS ride trackers and navigation devices, bike racks for cars, cameras, turbo trainers or rollers, gift cards, nutritional products and foodstuffs.
Can I purchase a bike that is on sale?
Yes - however we do reserve the right to add on a 5-15% surcharge on discounted bikes. This is due to the commission we have to pay the scheme providers.
The exact amount will depend on the scheme provider and the level of discount. Please get in touch with any queries.
I already have a bike, can I buy another one on a Cycle to Work Scheme?
YES. You are allowed to buy a bike on the cycle to work scheme if you already own a bike.
I already own a bike, can I just buy accessories on a Cycle to Work Scheme?
YES. You can buy accessories on their own but you are limited to accessories that you could use while commuting to work such as as helmets, shoes, clothing, luggage, pumps, lights and locks. Prohibited items are GPS ride trackers and navigation devices, bike racks for cars, cameras, turbo trainers or rollers, gift cards, nutritional products and foodstuffs.
What are you not allowed to buy on a Cycle to Work Scheme?
Kids bikes or prohibited items: GPS ride trackers and navigation devices, bike racks for cars, cameras, turbo trainers or rollers, gift cards, nutritional products and foodstuffs.
Can I buy an electric bike on a Cycle to Work Scheme?
YES. You are allowed to buy electric bikes through a cycle to work scheme. They are are a great choice for commuting allowing you to arrive at work in a much fresher state, ideal if your workplace does not have dedicated showers. You could even tackle a longer commute that would have been challenging on a traditional bike.
You can buy any type of bike on the scheme including road, mountain, electric and folding.
What Cycle to Work Schemes do the Bike Shed accept?
We accept all cycle to work schemes such as Cyclescheme and Cycle 2 Work, Bike to Work.
What happens at the end of the 'hire' period?
You have a choice, you can return the bike, you can take ownership of the bike and pay a fee based on 'fair market value' or you can extend your hire agreement to 36 months for a single small refundable deposit.
If you decicde to take ownership of the bike, then HMRC has set fair market values that employers must pay to keep the bike. So, you may be asked to pay up to 25% of the value of a bike costing more than £500 after 12 months.
* Please note: there is no guarantee that your employer will transfer ownership to you at the end of the hire period. Usually employers are happy to do this, but you should check with your HR department to be sure.
If you decide to extend your hire you will be asked for a refundable deposit of between 3-7%. During your extended hire agreement, you will make no further monthly payments. At the end of the 36 months you can either choose to send your bike back to your Cycle to Work provider (and your deposit will be refunded) or you take ownership of the bike. No further payments are needed.