Cycle to work
Provider: Cyclescheme Limited (our employer code is 38a2a)
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 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 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.
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. Your bicycle value cannot exceed 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.
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 2014 or March 2015 (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.
Review Date August 2015