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You can still get a bike and accessories through Cycle to Work if you intend cycling part of your journey on the way to work. You do not need to keep a record of your mileage but at least 50% of your commuting should be by bike. You can also use the bike for any leisure cycling.Back to Cycle to Work home
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The idea behind this is quite simple. You give up part of your salary and, in return, your employer gives you a non-cash benefit that is exempt from tax and National Insurance.
In this case you hire from your employer a bicycle and/or cycling safety equipment.The salary sacrifice is taken from your gross salary meaning you pay less tax and NI. This means a basic rate tax payer will save 32% on the cost of their order and a hgher rate tax payer 42%. Exact savings can vary on how your employer operates the scheme and your personal circumstances.
You can include most safety accessories under the scheme, including:
This list is not exhaustive and any cycle accessories that assist with commuting safely may be included.
There is no minimum amount and the maximum you can apply for is £1000.
Some employers are able to offer a higher maximum limit with a Consumer Credit License. Please check with your employer to confirm this.
It is possible to get two bikes – if for example you travel by rail and cannot take your bike on the train you can get a bike for each end of the journey as long as your employer allows this.
Please note the scheme does not allow you to obtain a bike for someone else.
We recommend that you insure the bike as your employer will still deduct the salary sacrifice payments even if the bike is stolen. We have a wide range of secure locks that will help protect it.
You can also insure bikes through household insurance and you should advise your insurer that the bike is through the scheme and is the property of your employer.
The bike and equipment is leased to you by your employer who will then deduct monthly ‘salary sacrifice’ amounts from your gross salary to cover the value of the certificate.
At the end of this period, your employer may transfer title of the goods or extend the hire agreement for a longer period. Check with your employer to confirm their transfer of ownership policy.
At the end of the salary sacrifice period ownership does not automatically transfer to you. HMRC states that if you wish to take ownership immediately there is a fair valuation fee (Fair Market Value) that needs to be paid as listed below.
HMRC has published the following 'Valuation Table' to be used to calculate the market value of bicycles and safety equipment at the end of the hire period:
|Age of cycle||Acceptable disposal value percentage|
|Original price less than £500||Original price £500+|
|18 months||16%||21 %|
Cyclescheme Users please find information here
Most employers prefer to maximise the benefit by offering two options instead of the above.
Check with your employer which end of scheme option applies or speak to the Ride-to-Work helpdesk for further advice.
If you leave your employer before you have completed the salary sacrifice term, any balance remaining must be repaid from your final net salary, i.e. without tax/NI savings.
To take ownership of the bike a transfer of ownership process will also apply within the HMRC Fair Market Valuation guidelines.
Unless your employer advises otherwise you can join the Ride-to-Work scheme again after your salary sacrifice deductions have ended. Generally the salary sacrifice is over 12 months, but it could be up to 18 months.
Some employers have specific rules regarding how often you join the scheme so check with your employer if you are not sure.
We accept vouchers from Bike2Work scheme and CycleScheme. We do not accept vouchers from Halfords or Evans Cycles.