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FAQS for Employees

Cycle to Work Save up to 42% on a new bike and kit

FAQs for Employees

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.

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  • How do I speak to someone about the scheme?
  • If you require further assistance you can email ridetowork@chainreactioncycles.com

  • How does the Cycle to Work scheme work?
    • The bike and equipment is leased to you by your employer who will deduct monthly ‘salary sacrifice’ amounts from your gross salary to cover the cost of the equipment.
    • Because the deductions are from gross salary it means you pay less tax and NI, saving you 32%-42% (depending on tax rating) on a bike of your choice and/or safety accessories.
    • You can use the bike for either your full journey to/from work or part-journey, e.g. to/from the station. You can also use the bike for leisure cycling.
    • The cost is usually spread over 12 months (or can be up to 18 months if your employer extends the period).
  • What does ‘salary sacrifice’ mean?
  • 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.

  • What cycling equipment can I get?
  • You can choose any make or model of adult bike excluding “Recycled” models.
  • Can I obtain accessories only, without obtaining a bike?
  • Yes you can.
  • What accessories can I include?
  • 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.

  • Is there a minimum and maximum amount?
  • 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.

  • I live too far to cycle to work, can I still get a bike on the scheme?
  • 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 but at least 50% of the bikes use should be for commuting. You can also use the bike for leisure cycling.
  • Can I buy equipment which is on sale?
  • Of course you can – helping you get even better savings on the list price. Please be aware that Re-cycled stock cannot be offered as it is subject to stock limitations.
  • Can I get more than one bike?
  • 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.

  • How do I obtain the equipment?
  • Once you’ve decided on the amount you want to spend, you request a Ride to Work quote and application pack from us. Once it is approved by your employer and the order with monies sent to us, we can deliver to your home, work place or you can come in store.
  • Who is responsible for insuring the bike?
  • 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.

  • Who is responsible for maintaining the bike?
  • It is your responsibility to maintain the bike.
  • When do I start paying?
  • The monthly salary deductions will normally begin in the next salary period after you signed your hire agreement. Your employer will start the deductions regardless of whether you have taken delivery of the bike or not.
  • Who does the equipment belong to?
  • 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.

  • What happens at the end of the salary sacrifice period?
  • 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+
    12 months 18% 25%
    18 months 16% 21 %
    2 years 13% 17%
    3 years 8% 12%
    4 years 3% 7%

    Cyclescheme Users please find information here

    Most employers prefer to maximise the benefit by offering two options instead of the above.

    1. A free extended hire term until the valuation fee is zero (year 5). There are no hire costs during the extended term and you continue using the bike free of charge.
    2. To report the valuation fee as a benefit in kind (P11d) meaning that you only pay tax on the valuation fee, rather than the valuation fee itself.

    For example:

    • A £450 bike transferred at 12 months would result in a tax adjustment the following year of £16.20 for a basic rate tax payer and £32.40 for a higher rate tax payer.
    • A £800 bike transferred at 12 months would result in a tax adjustment the following year of £40.00 for a basic rate tax payer and £80.00 for a higher rate tax payer.

    Check with your employer which end of scheme option applies or speak to the Ride-to-Work helpdesk for further advice.

  • Can I pay off the balance early or pay over a shorter time?
  • This will be down to the discretion of your employer.
  • What happens if I’m off work?
  • If you take maternity leave, unpaid leave, holiday or sick leave that takes your monthly salary to below the amount of your salary sacrifice, your employer will suspend your payments until you are earning again. However best to check with your employer.
  • What happens if I leave my employer?
  • 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.

  • I am self-employed - can I join the Cycle to Work scheme?
  • You can only do the scheme if you are paid via PAYE in order for the salary sacrifice deductions to be made.
  • Can I take part in the Cycle to Work scheme more than once?
  • 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.

  • Do you accept other vouchers?
  • We accept vouchers from Bike2Work scheme and CycleScheme. We do not accept vouchers from Halfords or Evans Cycles.

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