Salary Sacrifice Schemes
All Salary schemes allow employees to benefit from a long term loan of bikes and commuting equipment such as lights, locks and panniers completely tax free
Employers benefit from a fitter, more punctual, more wide-awake staff.
Employees benefit from better health and better bikes because their money goes further. With a budget of, say £400, an employee in the high tax-band can, in theory, afford a bike, plus accessories, worth nearly £750 .The typical saving for an average tax-payer can be between 38-45 per cent
To take advantage of this scheme your employer must either have a cycle scheme in place or be willing to implement one through one of the providers that exist. It will cost your employer nothing & they will save tax too
#cycling to work in the city
Please use our online cycle schemes enquiry form to submit your requirements now:
How it works
- Once your employer has signed up, call in & choose your bike & equipment.
- We will give you a quotation for it all.
- You then apply for the scheme
- When you are happy that you are eligible by your employer contact us to confirm the order
- After itâ€™s been processed you'll either receive a voucher or Letter of Collection (LOC)
- We swap the voucher / or LOC for your bike & equipment.
How are the savings made?
Your employer will usually absorb the VAT on the sale
You take a salary sacrifice for the cost of the bike & safety equipment. This is usually spread over 12 months,
The salary sacrifice is off your gross wage, so you do not pay income tax or Nic on the sacrifice.
This is a general guide to how schemes work. It may vary.
Employer signs up for the scheme
You choose your new bike (this must be from an approved supplier
Your employer buys this bike: in most cases, the VAT can be reclaimed
The bike is for your exclusive use, but at least 50% of your mileage should be commuting or work-related travel. Youâ€™re not obliged to cycle to work every day.
The VAT-free price (providing the employer is VAT-registered) of the bike is repaid via salary sacrifice over an agreed period (usually between 12 and 18 months). You donâ€™t pay tax or national insurance on the income you forego, so you could make further savings.
After the agreed period you will usually have the option to purchase the bike at a â€˜fair market priceâ€™ â€“ which could be between 2.5% and 10% of its original cost