Cycle to work
Provider: Cyclescheme Limited (our employer code is 38a2a)
Background: This benefit provides you with the opportunity to select a bicycle and accessories where the primary use will be to cycle to work. The benefit is part of the Government Green Transport initiative aimed at encouraging more people to use environmentally friendly methods of transport to and from work. As part of the initiative you do not have to pay tax or NI on the cost of the equipment. You could save up to 41% compared with purchasing the same equipment directly.
Through Flexible Benefits you choose to loan a brand new bicycle of your choice for a period of 36 months. To participate in this scheme your pay will be reduced by an amount equivalent to the value of the bicycle voucher selected. The reduction to your salary will be spread equally over the first 12 months of the loan period. Under the cycle to work scheme you receive you will save both tax and National Insurance.
If you selected this benefit as part of last years’ scheme you will not be able to re-select the benefit this year. Once the 36 month hire agreement period has lapsed on your existing bicycle, you will be able to participate again, at your next annual enrolment opportunity.
From summer 2013, staff have the opportunity to sign up for the Cyclescheme benefit during annual enrolment or, if they prefer, to instead sign up for the Cyclescheme in February 2014. To request a February enrolment, please contact the Flexible Benefits Helpdesk between 1 - 21 February 2014. Please note that staff are still only able to sign up for the Cyclescheme once every 36 months.
Please note: this benefit is only available through participating Cyclescheme retailers.
Flexible Benefits Options: The scheme operates on a "letter of collection" basis, you select a voucher denomination up to a maximum of £1,000 (in multiples of £100, minimum £200) for a bicycle and accessories.
Amendments to Benefit: This benefit can be selected at annual enrolment or it can instead be requested in February 2014. It cannot be changed over the course of the year.
Tax and NI implications: This is operated by salary sacrifice. You will save tax and NI on this benefit.
Savings: Based on selecting a certificate for £1,000 a member of staff on £25,000 would save approximately £24.50 on the value of the voucher per month.
How do I get this benefit? You will be sent a hire agreement to complete in either October 2013 or March 2014 (depending on the enrolment window you selected). Once received by Cyclesheme, you will receive a voucher which you exchange for your bicycle/accessories at your chosen retailer.