It allows employers to "loan" or lease cycles and safety equipment to employees as a tax-free benefit. The employee then pays for the bike and equipment typically over a 12 month period, after which the the employee is able to take ownership.
The benefits to the employee is that the payments are deducted from your PAYE pay before tax and other contributions, thus effectively reducing the price of the bike by as much as 40%.
There is a lot of confusion about how the scheme is administered and managed by different employers so before proceeding with a Bike To Work purchase from us we strongly suggest you read our FAQ section on the subject.
Read Our Frequently Asked Questions about Bike To Work.
How is your employer buying your Bike To Work bike?There are two ways for your employer to purchase your new bike:
- Buying direct from the shop
- Buying via a third party agent, like CycleScheme.co.uk
1. If your employer is buying the bike direct, perhaps using a company credit card or by invoicing us you can get whatever our best price is at the time of ordering, you can even use our voucher codes to get the price down too!
2. If your employer is using one of the many third party agents to administer and manage the scheme on their behalf you can buy any bike at our "Online Price". Bikes on special offer can also be purchased but not at the special offer price, the price has to go up by about 10-12% to cover the commission these agents charge us. To increase the price simply add the special offer bike to your basket and use the voucher code CYCLESCHEME at checkout and the price will automatically be increased.
If you are unsure which method your employer uses for the purchase, contact your HR dept.