Cycle to Work
Cycle to Work Scheme
This page provides a brief introduction to the UK Government’s Cycle to Work scheme and how it is administered.
The scheme is very flexible and can be applied to any type of bike – the two biggest scheme operators also allow bike priced higher than £1000 (one through a top-up and one through having no upper limit). Once you decide the scheme is right for you just let us know when enquiring about or ordering a bike so that we can prepare the admin side for you.
What is the Cycle to Work Scheme?
To promote healthier journeys to work and to reduce environmental pollution, the 1999 Finance Act introduced an annual tax exemption, known as the Cycle to Work scheme, which allows employers to provide cycles and cyclists’ safety equipment to employees as a tax-free benefit. The exemption was one of a series of measures introduced under the Government’s Green Transport Plan. The official Department of Transport guidelines give the detailed background on the scheme, but are quite heavy going!
Is there more than one scheme?
There is only one Cycle to Work tax exemption scheme – but there are a number of scheme operators that can help in the implementation and administration of the scheme on behalf of employers and employees. We work with most of the Cycle to Work scheme operators, including Cyclescheme (who are the biggest operator), the Green Commute Initiative (who are probably the easiest/fastest to deal with, and who have no upper price limit), Cycle Plus, OnYourBike, Salary Exchange etc.
Each Cycle to Work scheme operator will have slightly different procedures and guidelines, but all will conform the UK Government tax exemption regulations, and all will deliver significant savings (of up to 42%) on the purchase price of new bikes. Please note that the scheme only applies to brand new bikes.
The tax break applies to purchase values of up to £1000, except for the Green Commute Initiative who have no upper limit, and with Cyclescheme you are free (as long as your employer does not object) to add your own top-up payment in order to purchase a bike over the £1000 limit. The tax savings will only apply to the first £1000, but this still a significant saving for many buyers. Top up payments cannot be made using 0% Finance, as it is not possible to have two finance agreements on one item.
To give you an idea of potential savings, please try out the calculator below. We are only too happy to talk to you about how you can purchase a bike from us under any of the schemes.
Why Epic Cycles?
- Widest selection of top-quality models to suit every need: Epic Cycles is the UK’s leading quality cycle store in the UK, devoted entirely to the building and supplying of bikes, rather than general parts and accessories. We have distinctive models from top manufacturers covering all kinds of rider needs from pure road bikes, through multi-terrain or all-road bikes, to bikes that are primarily designed for off road use but which still make excellent Cycle to Work bikes, especially on some of our less manicured roads!
- Everyday Low Pricing – including on Cycle to Work bikes: We offer competitive pricing to all of customers, regardless of how they are purchasing their new bike – on every day of the year, not just sale periods (in fact we don’t have seasonal “Sales”). And unlike many stores we do NOT exclude Cycle to Work buyers from purchasing at discounted bike prices!
- Advice: We pride ourselves on offering informed advice on which bikes will suit a rider’s individual needs and budget. We will never try to sell you something purely because it is convenient for us! We are UK’s centre of excellence for every bike brand we sell, with unrivalled knowledge of our product range.
- Servicing: All bike come with a free first service, but we also offer highly competitive workshop rates for any further servicing if needed too.
- No hidden fees : We charge neither employers nor employees any admin fees to use any of the third party schemes (such as cyclesceme.co.uk, onyourbike etc.).
- Shipping: All bikes can be shipped for a small charge within the UK at competitive rates, or you can collect your bike in person from our Ludlow store.
- Personalisation and Set-up: at Epic Cycles we rarely sell a bike that hasn’t been tuned in some way. We are hugely experienced in tailoring bikes to suit the needs of individuals – whether it’s simple sizing and set-up dimensions, or adaptation or substitution of parts, or even full custom specifications, the same service is available to all of our customers, including Cycle to Work buyers.
Frequently Asked Questions
- Employers also benefit from National Insurance contribution savings and will be able to treat the cost as capital expenditure and claim capital allowances in the normal manner.
- Savings for employers are always welcome, but running a Cycle to Work scheme also offers the tangible benefits of a fitter, more motivated, loyal and more productive workforce:
- Brighter, fitter, more punctual staff – a healthier workforce will lead to better performance at work and fewer sick days taken.
- Enhanced benefits package promotes staff loyalty
- Liberated car parking spaces
- Reduced organisational carbon footprint
- Promoting alternative transport initiatives will also show you have a keen interest in the local community and environmental issues.
To be eligible, employees must pay PAYE, and have a contract that is longer than of the salary sacrifice period. They must also be over 18 years old and earn more than the National Minimum Wage after the loan repayment has been deducted.
Typical savings are between 30% and 50%, but the actual amount you pay depends on the rate at which you pay tax. The savings calculator will give you an idea of savings.
Alternatively you and your employer can agree to extend the loan period indefinitely at no charge, in which case the bike remains the property of your employer.
- Ownership of the equipment is not transferred to the employee during the salary sacrifice period.
- While there is no requirement to keep records of miles ridden, employees should use the equipment mainly for qualifying journeys; i.e. for journeys made between the employees home and workplace, or part of those journeys (for example, to the station), or for journeys between one workplace and another.
- The Cycle to Work scheme is made available generally to employees of the employer concerned and not confined to directors or offered to them on more favourable terms.