Cyclescheme
There are many Schemes providing tax free bikes, i.e. Bike2work , Ride2work, cycle2work, cycleschems etc but they all follow the same route as is determined by HMRC and OFT .
Please have a look at the information below, and for more information go to the provider’s website by clicking on the relevant logo link. If you require anymore information regarding cycle schemes, then please complete the contact form with relevant information. City Cycles is a Leading independent Store based in Leicester, with 2 stores carrying a full range of Bikes from Raleigh, Diamondback, Claud Butler, Falcon, Mongoose, Gt, We The People. With such a vast stock we will be able to cater for everybody’s needs. We also have a dedicated workshop with fully trained mechanics and sales staff to ensure you have the best experience on your commute to and from work,Due to be provided with correct and helpful advice when choosing your bike and accessories.
Cyclescheme provides unrivalled administrative and promotional services to employers of all sizes wishing to set up a Cycle to Work Scheme benefit for their employees. Cyclescheme offer the most admin-friendly scheme for employers and the greatest choice of bikes and equipment for employees. To get a better feel of who we are and what we do, here’s a list of some of the aspects of our service that we are most proud of:
- Cyclescheme is a completely free service to both employees and employers.
- With over 1800 Partner Stores throughout the UK, Cyclescheme have the largest supplier network on the market;
- Cyclescheme only work with Independent Bicycle Dealers (IBDs) whose core products and services are dedicated to the promotion of cycling as a sustainable form of transport;
- Hence, scheme participants will receive expert and specialist advice when selecting the bicycle and safety equipment for their commuting needs;
- Free access to the secure, online Certificate processing tool - the Cyclescheme 'Extranet';
- Automation of scheme processes that minimise administration, allowing employers more time to look after their business;
- Provision of free of charge promotional material including Posters, leaflets, our ‘Cycle Commuter’ Magazine, and a host of electronic communications including our monthly newsletter;
- Knowledgeable and friendly Account Management and Helpdesk teams dedicated to helping employers and employees through the entire lifecycle of the scheme;
- Peace of mind that cyclescheme adheres to HMRC, Department for Transport (DfT) and Office of Fair Trading (OFT) Cycle to Work guidelines.
Sounds confusing?
Here’s an example of how the savings work during the hire period, assuming the following:
- Employee is paid monthly
- Employee is a standard rate tax payer requesting a £500 Certificate
- The hire period is 12 months
- The Employee’s monthly gross salary is £1,200.00 (£14.400 per annum)
| Salary before scheme participation |
Salary during scheme participation |
|
| Monthly Gross Salary | £1,200.00 | £1,200.00 |
| Bike value including VAT Gross salary sacrifice total |
£500.00 £500.00 |
|
| MONTHLY GROSS SALARY SACRIFICE = £500 / 12 months (this amount appears on the hire agreement) |
£41.66 | |
| Monthly Gross Salary after salary sacrifice Monthly NIC contribution (12%) Monthly income tax contribution (20%) Net Salary |
£1,200.00 £144.00 £240.00 £816.00 |
£1,158.34 £139.00 £231.67 £787.67 |
| MONTHLY NET SALARY REDUCTION | £816.00 minus £787.67= | £28.33 |
| MONTHLY SAVING | £41.66 minus £28.33 = | £13.33 |
So, because the participants pay less income tax and NIC their NET salary reduction is less than the GROSS salary reduction, and this is how savings are achieved. In this example, the employee makes a £41.66 contribution to the employer, but it only costs them £28.33, resulting in a saving of £13.33 per month.