You choose the bike from one of the suppliers who have signed up with Cyclescheme (these are identified on the Cyclescheme website). The Trust buys the bike and you sign a hire agreement to pay the Trust for the bike by deductions from your pay over the following 12 months.
There is a ‘fair market value’ charge set by the Inland Revenue which is to be paid at the end of payment period. This is based on a sliding scale of the value of the bike when it becomes the property of the employee. Following the changes in August 2010 Cyclescheme have introduced arrangements allowing employees to pay a one off deposit equal to the final fair market value payment at the end of the payment period and transfer the ownership of the bike to Cyclescheme for 3 more years. This keeps the fair market value payment low.
- The maximum purchase cost is £3000, including safety equipment etc.
- Staff on bank contracts have no certainty of regular employment and therefore cannot take part in the scheme.
- Staff whose earnings would be taken below the minimum wage after deduction of bike costs cannot take part in the scheme.
- Staff working a very small number of hours who pay no national insurance and minimal tax will not make savings by buying though the scheme.
- You will not be able to buy your bike through Halfords as they run their own scheme which is not part of Cyclescheme.
These are the steps for you to purchase a bike through the salary sacrifice scheme run by Cyclescheme Ltd.
- Read the information pages from Cyclescheme below about the operation of the scheme.
- Find your local partner shop using the search facility www.cyclescheme.co.uk/64c4b
- Visit the shop and choose your bike and safety equipment – you will be given a paper quote
- Use the details on your quote to request a certificate on-line at Cyclescheme’s website (link above). Go to “Getting a bike” and then “Request a certificate”.
Once you have requested a certificate this will be sent by e-mail to HR for approval. HR will contact you to sign your hire agreement and hand over the bike voucher to you when it is ready. This usually happens 2-3 weeks after you have requested your certificate.
Click on the link below for Frequently Asked Questions
Chris Robinson in Human Resources (01423) 555421 [email protected]