This is a bit complicated, and often much
misunderstood by people. To fully understand why you need to read this
section and the section below, "Who Are CycleScheme.co.uk?"
The Cycle To Work scheme is a a salary sacrifice
scheme operated by the government to encourage people to buy bikes and
cycle to work, although of course you don't only have to use the bike
for commuting! The very simple version of it is that your employers
purchases a bike on your behalf and "rents" it to you for a period of 12
You pay a rental fee each month of roughly 1/12th of the cost, so at the
end of the 12 month rental period you've effectively purchased the
bike. The neat bit is this monthly rental feee is deducted from your pay
BEFORE tax and NI contribution, so it's effectively reducing the amount
of pay your taxed on. The upshot of this is you pay less tax, which
when looked at another way reduces the price of the bike. Some employers
will also cover the VAT portion of the purchase (20%), so you save that
too! Typically a bike purchased on the Bike 2 Work scheme saves you
around 20-30% of the overall price.
2. Who are CycleScheme.co.uk?
Many people think Cyclescheme.co.uk are an official body who manage the
Cycle To Work scheme on behalf of the government, they're not. They are a
commercial privately owned profit making business (just like us) who
act as an agent for employers wishing to provide cycles to their staff
on the Cycle To Work scheme. They are a "go-between" between the
employer and the bike shop, they make their money by charging the bike
shop a commission on every bike sale they are involved in. They
are not the only agent who do this, there are many of them, however
CycleScheme are by far the largest and most successful.
Employers do not need to use these agents to offer bikes to their staff,
many don't, preferring to purchase the bike themselves direct from the
shop and setup the rental agreements with their staff via their own HR
departments. However there is a limited about of paperwork involved in
doing that, so many opt to use an agent.
3. Can anyone get a bike on the Cycle To Work scheme?
Almost anyone in employment, yes. There are some restrictions, and as
they're constantly changing it wouldn't be right for us to list the
exact details here, so best to check the exact requirements here
(be warned, it's a lengthy read!). But in a nutshell, almost anyone who is PAYE and in permanent employment is eligible.
4. Can I use voucher codes to get discounts on Cycle To Work purchases?
It depends! As explained above the CycleScheme.co.uk agent charges us a
commission on all bike sales they are involved in, so generally speaking
we are unable to offer additional discounts by way of voucher codes on
these sales as any spare profit we have has to go to CycleScheme in the
form of this commission. This would be the same if your employer uses
any other third party agent.
If though your employer purchases the bike direct from us then you can use all the voucher codes you want!
5. Can I buy a special offer bike on the Cycle To Work scheme?
YES! But, there are caveats. If your employer is purchasing the bike
direct from us then you can buy any special offer bike at exactly the
price seen on the screen. If though they are using a third party agent,
then we have to increase the
price of the bike slightly to cover the commission they charge. In this
situation simply add the bike to your basket, proceed to the checkout
and use the voucher code "CYCLESCHEME", the price will then be increased
accordingly. You only need to use this code if your employer is using a
third party agent.
6. How do I purchase a bike on the Cycle To Work Scheme online?
If your purchasing using a third party agent like CycleScheme
or your employer is buying direct and we need to invoice them, just add
the bike to your basket and proceed to checkout, at the payment section
select "Cyclescheme" as your payment method, no funds or payment
details will be asked for. All we will ask for is your details, address,
name, phone number etc. Once we have this order we will get in touch to
ascertain how your paying (Cyclescheme, other agent or invoice to
employer) and we will do the necessary.
If your buying the bike using your company credit card to pay just
checkout as normal and use the card for payment, then in the comments
tell us that you will be needing an invoice and who it needs to be made
out to. That's it!
7. I'm using CycleScheme.co.uk or other agent, is my bike reserved once the order is placed?
No. Once you place the order we will send you the details to apply for
your Cyclescheme voucher, this can take from a few days to a few months
for the voucher to be issued, depending on how your employer administers
the scheme in-house. Due to this timescale we can not guarantee your
chosen bike will still be in stock at the same price when the voucher is
issued. To have your chosen bike allocated to you, and so ensure
it will be available when the voucher is issued you will need to pay a
ten percent deposit, which we will refund once the voucher is received
by us. There are no exceptions to this rule. If you choose not to pay
the holding deposit you run the risk of the bike going out of stock, or
the price changing.
8. If the price goes down will I get it at the cheaper price?
If you paid your holding deposit, no. If you didn't pay a holding
deposit and the bike is still in stock but at a lower price, yes. We do
realise this sounds daft, but there is a logic to it. The price we
charge is all dependent on the price we pay, and this can change daily.
When you order your Cycle To work bike and pay your deposit we purchase
it for you at the price charged that day. Then we hold it for you until
the voucher is available. If the bike subsequently goes down in price
with our supplier and so our price goes down too you won't be able to
avail of this as your bike is already bought and paid for. If however
you don't pay the deposit we won't purchase it on your behalf until we
have your voucher, at this point we avail of any supplier price
reduction, and so you do too. Obviously though the risk is that the bike
goes out of stock or the price goes up (it does happen) so it's the
risk you take.
If the price does go down there is always the option to cancel the
voucher and start the process over, but the holding deposit is
non-refundable, so that will be lost. We do realise this sounds really
draconian but you need to bear in mind we sell hundreds and hundreds of
bikes on the Cycle To Work scheme every year, and you're most likely
buying from as we're the best online price you can find, this is because
we work to a fraction of the profit margin of many shops, so can not
afford to soak up price reductions in these situations. We're not
unreasonable though, and normally with some freebies here and there we
can come to an arrangement where everyone is happy, the important thing
is to speak to us before making any rash decisions.