In essence, your employer buys a bike for you to ride to work, you ‘hire’ it through salary sacrifice (which is where you save, by not paying tax and National Insurance on the monthly fees) and at the end of the ‘hire’ period you buy the bike from your employer. In other words, your salary sacrifice is made from your gross salary, not your net salary.
Hundreds of thousands of people have already bought a bike on the scheme, which was introduced as a tax exemption in 1999 by the government to ‘promote healthier journeys to work and reduce environmental pollution’.
Because it was set up to promote work journeys rather than cycling in general, your employer technically remains the owner of the bike once you finish the hire period. Everyone knows that in practice the employee is ‘buying’ the bike, but that isn’t legally the case until the salary sacrifice ends and the employer ‘sells’ the now heavily depreciated equipment to the employee.
In the past, few employers have bothered with the final sale transaction because it was a hassle, so many employees didn’t have to make a final payment. However, that changed a few years ago with HMRC clarifying that bikes needed to be sold at Fair Market Value so as to avoid the scheme being a tax loophole.
Third-party providers, such as Cyclescheme, now usually offer a variety of options: pay a small refundable deposit to re-hire the bike for three more years (after which the bike is yours for free), pay the fair market value (normally about 18 percent or 25 percent of the certificate value of the bike), or return the bike.
Swinnerton Cycles are agents for the following Cyclescheme providers;
The largest cycle to work network in the UK.
Halford’s vouchers are accepted instore . Please note Halfords vouchers can not be topped up.
Scheme provider for the NHS
Scheme provider for JCB and others.
Green Commute Initiative
A révolution is beginning! Commuters are breaking free from horribly congested, polluted car commutes by using é-bikes.
They’re getting tax breaks to do it! How cool is that?
A revolutionary new cycle to work scheme is making it happen. With no £1,000 limit, any bike of any value is possible.
We’re the Green Commute Initiative. A not for profit Social Enterprise with a mission to get more commuters out of their cars and onto clean é-bikes because cleaner air helps us all.
So you’ll get honest information, simple website, no marketing puff and astonishing savings!
For more information contact your HR department or call us on 01782747782