Quick Answer: How does bike scheme work UK?

What is Cyclescheme? 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.

How does the government bike scheme work?

How does the Cycle to Work scheme work? In essence, your employer buys a bike for you to ride to work and you ‘hire’ it through salary sacrifice (which is where you save by not paying tax and National Insurance contributions on the monthly fees).

How does the Cycle to Work scheme work UK?

How it works. 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. … After 12 months the employer will have recovered their costs and generated up to 13.8% in savings.

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Is the bike to work scheme worth it?

The Cycle to Work scheme also allows you to buy accessories alongside the bike and this is definitely something you should take advantage of. In fact, we reckon it is worth using the scheme to buy two bike locks, a good set of lights, a helmet and some high-quality bibshorts.

How much do you pay on the bike to work scheme?

The scheme applies to bikes and equipment up to the value of €1,250 and for pedelecs or e-bikes and related safety equipment up to the value of €1,500. As an employee you can use the scheme once every 4 years.

Do you own the bike at the end of cycle to work scheme?

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).

What happens at the end of the 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.

Can you pay off cycle to work scheme early?

If an employee leaves the scheme early, the bike or equipment will remain the property of the employer. … As such, they will no longer be able to take advantage of the savings made by paying for the bike or equipment from their gross salary before tax.

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How many times can you use the cycle to work scheme?

There is no limit on how many times you use the scheme during your employment, but as you can only have one application per 12 month period, use it wisely!

Can I spend more than 1000 on cycle to work scheme?

Big news! Cyclescheme is no longer capped at £1,000. Budding commuters can now save on the exact bike, components and accessories they need to cycle to work. So, your Cycle to work benefit is more relevant and accessible than ever!

Do I qualify for cycle to work scheme?

Can I apply for Cyclescheme? … 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.

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.

Can I get 2 bikes on cycle scheme?

Can I get more than one bike? Yes! If you would like to get two bikes you certainly can – as long as they are both suitable and safe for you to ride, and your total doesn’t exceed your scheme’s maximum limit.

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How much tax do you save on cycle to work scheme?

With Ride-to-Work, you can get a tax-free bike, which for most people means they save a minimum of 32% of the cost.

How do I claim for Cycle to Work scheme?

Sign up at www.cycle2work.info and complete a speedy online application. You’ll need your employer code to complete this. 3. Once your employer has approved your application, you will receive your letter of collection instantly by email – this is what you use to redeem your bike and accessories.

Do you pay VAT on bike to work scheme?

Value-Added Tax (VAT) on bicycles or safety equipment purchased. You must pay VAT on bicycles or safety equipment purchased for your employees. You cannot claim VAT back as the equipment is not used for the purposes of taxable supplies.