The cycle to work benefit is a tax-efficient hire benefit. As such, you do not own the bike in the first instance (albeit it is in your care and you can use it as if it were your own).
Who pays for the bike on cycle to work scheme?
You pay nothing more. When the bike is 4 years old you take ownership of the bike. If you do not wish to own the bike you and return it and we will refund your deposit. Own it now – you pay either 18 or 25% of the bike’s value (18% if the bike was initially under £500 and 25% if it was initially over £500).
What happens at end of cycle to work scheme?
At the end of the hire period, Bike to Work Ltd will contact employees to discuss the options available. … At the end of this period, Bike to Work Ltd will refund the deposit if the employee does not wish to keep the bicycle. No further action or payment is required if they wish to keep the bicycle.
How does cycle scheme work?
The cycle to work scheme allows employees to obtain commuter bikes and cycling accessories through their employer, whilst spreading the cost over 12 months and making unbeatable savings through a tax break. … The employee receives their bike and starts their salary repayments.
Can I sell my cycle to work scheme bike?
The general rule of thumb is that you can sell your ex-cycle-to-work bike if you have completed your chosen ownership option. Please note, you cannot sell your cycle to work scheme bike if: You are in the initial Hire Period, or. … You have not completed a transfer of ownership with Cyclescheme or your employer.
How much money do you save on cycle to work scheme?
This means that most scheme participants save between 32-42% on the cost of their bike and/or accessories during their initial hire period.
How long does it take to get a bike on cycle to work scheme?
The cycle to work scheme usually takes 3-14 days from application to redemption. The length of time it takes to go from doing your application to getting your bike and/or accessories can vary; many employees can collect their cycle to work packages directly after being approved.
Is the cycle scheme worth it?
However, it is still widely used and, according to national cycling charity Cycling UK, very worth it. Sam Jones at Cycling UK told us: “We’re absolutely pro the Cycle to Work scheme – you make a saving, it helps people spread the cost out over time, and it helps employers and employees think about cycling.”
Can you pay off your cycle to work scheme early?
If an employee leaves the scheme early, the bike or equipment will remain the property of the employer. … Alternatively, to make repayment more manageable for the outgoing employee, the employer could split it over a longer period. This would require a new agreement to be drawn up and signed by both parties.
Does cycle to work cost the employer?
Does the scheme cost anything for an Employer to implement? The scheme is free of charge to set up and costs nothing to run. The Employer makes the initial purchase and then leases the bike/equipment to the Employee via a salary sacrifice, until the full amount is recovered.
How do I qualify for cycle to work scheme?
If you are a working adult aged 16 or over, you are eligible to join Cyclescheme. Your employer needs to be signed up and your earnings should be more than the National Minimum Wage after the salary sacrifice is taken from your gross salary. To find out more about eligibility, visit our FAQs.
Can I spend more than 1000 on cycle to work scheme?
Is the cycle to work scheme worth it? Yes! ‘Freedom to ride’ means employees can save on the total cost of the package, not just the first £1,000. This means that although the savings haven’t increased or changed employees will now be able to save more on bikes or cycle to work packages with a value over £1,000.
Is Cycle to Work scheme a benefit in kind?
Under HMRC’s new guidelines, a four-year old bike bought for less than £500 has a fair residual value of 3%. … Other cycle to work schemes that had longer contract hire periods – typically three years – have simply given the staff member the bike and said they must pay tax on its value as a benefit in kind.
What happens if my cycle to work bike is stolen?
What happens if the bike gets stolen before I’ve paid for it? It will still be down to you (employee) to complete the full payment even if you no longer possess the bike, which means if the bike is stolen the employee will be liable for any outstanding monies without any tax exemptions.
What is a cycle to work voucher?
Cyclescheme is an employee benefit that saves you 25-39% on a bike and accessories (or even more with our offers). You pay nothing upfront and the payments are taken tax efficiently from your salary by your employer.
Does NHS do cycle to work scheme?
Ask your NHS hospital’s HR department for their personal link to the Cycle to Work Scheme. The website will then provide you with the local bike shop that is part of your scheme. Take the e-certificate/paper certificate to the supplier in exchange for your bike and/or equipment.