Cycle to work
Provider: Cyclescheme Limited (our employer code is 38a2a)
***Important changes to the Cyclescheme from this year***
From this year, colleagues can apply for a new bicycle through the cyclescheme every 12 months. If you choose to sign up for a new bicycle during annual enrolment now, at the end of your 12 month loan period, Cyclescheme will contact you to offer to take on and extend your loan period for a further 36 months. This will cost you either 3% of your equipment value (if it was less than £500) or 7% (if it was £500 or more). You can then sign up for a new bicycle at the next Flexible Benefits enrolment. This option is also available to colleagues who have participated in the cyclescheme in the last 24 months. For further information, please refer to Cyclescheme's FAQs document: End of Hire FAQs
Background: The Cyclescheme 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 aimed at encouraging more colleagues to use environmentally friendly methods of transport to and from work and to help support the University's Travel Plan. With this benefit, you do not have to pay tax or NI on the cost of the equipment and 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 12 months. So if you applied for a bicycle at last year's enrolment, you are now permitted to apply for a new bicycle during this enrolment. 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 12 months of the loan period. Under the cycle to work scheme you will save both tax and National Insurance.
If you selected this benefit as part of the February 2016 enrolment, you will not be able to re-select the benefit this year. You will be able to apply for this benefit at the February 2017 enrolment window.
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. From this year, you can use your voucher towards a bicycle that exceeds the value of your voucher.
Amendments to Benefit: This benefit can be selected at annual enrolment or it can instead be requested in February. It cannot be changed over the course of the year. If you have previously selected a bicycle through the cyclescheme, you will need to wait for the 12 month loan period to expire before you can participate again.
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 emailed an online hire agreement to complete following the close of annual enrolment. Once this has been processed by Cyclesheme, you will receive a voucher which you exchange for your bicycle/accessories at your chosen retailer.
(Flexible Benefits Helpdesk)
Review Date August 2017