Cyclescheme

What is Cyclescheme?

Tax is complicated; CycleScheme is not. You choose a bike, hire it for an agreed length of time, and then snap it up for a fraction of its original value.

Here are 4 Quick steps to save at least 25% on your new bike Package:

1: Choose your CycleScheme package

What bike and equipment do you want? Consider your commute. How far is it? What route will you take? Be honest with yourself. What are your priorities? What accessories might you need? These are all questions you should ask yourself as you prepare to revolutionise your commute! We are here for you if you need a helping hand!

Decide on the package that suits you!

2: Submit your application

This couldn't be easier. If your employer is signed up with CycleScheme, they'll have a unique employer code to use when you apply via CycleScheme.co.uk. If your employer isn't signed up, they can join for free in just a few clicks, just let them know to visit the website and follow the simple steps.

On the application page, you'll be guided through a simple form that asks for your work details, contact information, and the value of the CycleScheme Certificate you're applying for. When you submit the form, your employer will receive a copy of your Hire Agreement.

3: Get your CycleScheme package

With your application approved and paid for by your employer, it's time to exchange your CycleScheme Certificate for your CycleScheme package. Contact us and arrange a time to pop in and pick up your equipment. On arrival we will set the bike up for you, make any adjustments needed to saddle height and general bike position to make sure it is comfortable to ride. We also fit any accessories you have chosen as part of your package and guide you through how everything works. We are here for any advice about anything, so if you have any questions, this is the time to fire away! We will then keep the frame number in our computer database for any future references.

Your salary sacrifice and Hire Agreement now kicks in. For the next 12 months, you'll pay a set amount from your salary each month in exchange for the hire of your CycleScheme package from your employer.

The deduction is made from your gross salary, so you make income tax and national insurance savings of 32% if you're a standard rate tax payer, or 42% if you're a higher rate tax payer.

4: Transfer ownership

When the Hire Agreement and salary sacrifice ends, you can keep your CycleScheme Package by making a final payment for just a small amount.

For a CycleScheme package under £500, you'll pay 3% of the original value; for a package over £500, it's 7% - so a maximum of £70 on a £1,000 package. The bike remains 'hired' for a further 36 months, but with no more monthly payments. Ownership can then officially be transferred to you at no extra cost.

This method of transferring ownership is why you save a minimum of 25% rather than a minimum of 32%. Many CycleScheme participants will save more.

For a personalised savings figure, visit the CycleScheme calculator and enter your details.

Useful Website links:

  • www.CycleScheme.co.uk
  • www.CycleScheme.co.uk/employers
  • www.CycleScheme.co.uk/help/faqs
  • www.CycleScheme.co.uk/signup-email
  • We also support the following schemes

    Cycle2work Bike2Work Logo NHS Bike2Work Logo Cycle Solutions Cyclescheme Logo
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