Cycle to Work

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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 new bike, except those listed on our Clearance page or on eBay (largely ex-display bikes).

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.

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 with the administration of the scheme on behalf of employers and employees. They all work in slightly different ways and therefore offer slightly different services.

We work with a large number of Cycle to Work scheme operators, including all of the largest operators – see below for a list of some of the main operators we work with.

Pricing

Because our Every Day Low Prices include significant discounts we are unable to absorb all of the commission/fees that some of the scheme operators charge us, so we have to apply a small admin fee to most (but not all) Cycle to Work purchases, in order to cover a part, but not all, of the commission. This can either be added to the bike price, and therefore paid using the voucher, or charged separately.

Even with the admin fees our prices will still be lower than the RRP. This is on top of the scheme savings of course.

The admin charge will vary from scheme to scheme, reflecting the differing fees that they charge us:

  • Cyclescheme.co.uk – 5%
  • Bike2Work – 5%
  • Caboodle – 5%
  • CyclePlus – 5%
  • Cycle Solutions – 5%
  • Enjoy Benefits – 5%
  • Salary Extras – 5%
  • Halfords Cycle2Work – 7.5%
  • Vivup – 7.5%

If your scheme operator is not listed above please contact us as we will almost certainly be able to work with them, and we will inform you of the relevant admin fee.

Below is a simple calculator to give you an idea of the potential savings to be made on your purchase – the calculator is provided by GCI, but the same savings would apply to other schemes.  Remember to add the relevant scheme admin fee above to your bike package price (zero in the case of GCI).

Green Commute Initiative is the industry-leading and award-winning cycle-to-work scheme with no limits. GCI’s scheme has no £1,000 limit and no scheme exit fees. You can save from 32-47% (depending on your tax rate). Pay monthly through salary sacrifice with no added interest. Salary sacrifice periods can be from 12-60 months.

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% for most, and up to 47% with Green Commute Initiative) on the purchase price of new bikes and accessories.

The UK Government has now removed the upper price limit that used to apply to the bike’s purchase price (it was formerly £1000) – it is now down to individual employers to set a price limit, or they can choose to set no limit at all.

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!

  • Advice & Extertise: 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 a UK centre of excellence for every bike brand we sell, with unrivaled knowledge of our entire product range.

  • Servicing: All bike come with free annual service for three years, but we also offer highly competitive workshop rates for any further work if needed too.

  • Free Shipping: All bikes can be shipped free of charge to UK Mainland (non-Highlands) addresses, or you can collect your bike in person from our Ludlow store.  Where bikes are being shipped we fully build and tune your bike, prior to careful packing and delivery to you through one of our partner couriers.  They are not simply shipped to you in the partially built state that they arrive in with us.

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.

Employers of all sizes across the public, private and voluntary sectors can implement a tax exempt loan scheme for their employees.

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.

With a salary sacrifice you pay back the costs of your bike (and any accessories) by reducing your gross pay for the length of the hire period (usually 18 months), rather than by paying out of your net pay – thereby saving income tax at your highest rate and NI contributions.

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.

You can choose any type of bike (except used, eBay, and ex-demo bikes). Technically, there is no limit on the value or number of bikes you can purchase as long as the bikes will be used for half their time for commuting purposes.

Yes.  This typically includes products that fall within the scope of equipment that adds to the safety and security of the bike, rider or luggage.  Other types of component may also be eligible for purchase, but please contact us to confirm whether we are able to accept scheme payments or vouchers for the specific parts you are considering.  Every type of bike can of course be purchased through the scheme.

The bike remains the property of your employer until the salary sacrifice period ends, at which point you may be given the opportunity to buy the bike for a “fair market value payment” (usually a nominal sun). The fair market value cannot be stated before or during the salary sacrifice period as this could be considered a hire purchase (rather than loan or hire) agreement and would therefore not qualify for tax-relief under this scheme.

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.

If the bike gets stolen or damaged beyond repair you will be liable for any outstanding monies without any tax exemptions. It is essential therefore that the bike is insured. You can obtain safety equipment, including locks, as part of any cycle to work scheme as long as the total value of your bike and accessories is within the consumer credit licence limit.

The official Depart for Transport conditions are:

  • 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.

The employee is responsible for maintaining the bike. Epic Cycles offer a free first service and can always provide help and advice when needed. We also offer extremely competitive servicing rates after the first service.

The hire agreement linked to your salary sacrifice is non-cancelable, so you will be obliged to pay the remaining amount in full, without any tax exemptions.

No – this not a finance agreement. Your employer may choose to purchase the bike though a financing arrangement and may then choose to add the associated additional costs to your salary sacrifice deductions, but that is an internal company consideration and not part of the cycle to work scheme.