Cycle To Works Scheme
Everyone loves a cheap bike!
At Hargreaves Cycles we are happy to supply any of our bikes on the Bike To Work scheme, a government initiative introduced in the Finance Act 1999 to promote healthier journeys to work and to reduce environmental pollution.
It allows employers to "loan" or lease cycles and safety equipment to employees as a tax-free benefit. The employee then pays for the bike and equipment typically over a 12 month period, after which the the employee is able to take ownership.
The benefits to the employee is that the payments are deducted from your PAYE pay before tax and other contributions, thus effectively reducing the price of the bike by as much as 40%.
There is a lot of confusion about how the scheme is administered and managed by different employers so before proceeding with a Bike To Work purchase from us we strongly suggest you read our FAQ section on the subject.Read Our Frequently Asked Questions about Bike To Work.
How is your employer buying your Bike To Work bike?
There are two ways for your employer to purchase your new bike:
- Buying direct from the shop
- Buying via a third party agent, like CycleScheme.co.uk
1. If your employer is buying the bike direct, perhaps using a company credit card or by invoicing us you can get whatever our best price is at the time of ordering.
2. If your employer is using one of the many third party agents to administer and manage the scheme on their behalf you can buy any bike at our "Online Price". Bikes on special offer may also be purchased but sometimes not at the special offer price, the price has to go up by about 10-12% to cover the commission these agents charge us. In these circumstances please contact us before placing an order.
If you are unsure which method your employer uses for the purchase, contact your HR dept.
How do I buy my new bike to work cycle?
To proceed with any Bike To Work order, regardless of what purchase method your employer uses, simply add everything you want to your basket, and then select "Cyclescheme" at the checkout. No funds payment option will be requested when you complete the order and we will get in touch to take the process to the next stage.
Once I've ordered the bike will it be allocated to me?
Bikes are not allocated until a holding deposit is paid or payment is received in full, be it by a voucher from a third party agent or direct from your employer. More about this is covered in our FAQ section. All deposits taken are refundable once full payment is received.
When will I get my bike?
As soon as the payment is received and cleared we will send your bike to you, or you can collect it in store. If you chose not to pay a holding deposit and the bike is no longer available once payment is ready we will be happy to supply an alternative or cancel the order.
What is salary sacrifice and how do participants save?
Salary sacrifice occurs when an employee agrees to give up part of their salary for an agreed period (in the case of the Cycle to Work scheme this is usually 12 months) in exchange for a non-cash benefit, such as the loan of a bicycle and safety equipment. As salary sacrifice is taken from the gross salary (before tax) rather than net pay it means the employee pays less income tax and National Insurance. Most employers can pass on a VAT saving to participating employees.
What are the savings for the employee
Typical savings for employees are between 42% and 52%, but the actual amount depends on the employee's personal tax band and the way the employer runs their scheme. Higher rate taxpayers will save more,
Who actually owns the bike?
The bike and equipment remain the property of the employer throughout the hire period, unless the employer uses a finance company to fund the bikes; in this case the finance company or funding bank will own the bikes.
If you have any questions about Bike To Work purchases just get in touch!