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Bicycle Doctor Supported schemes

What is the Cycle to Work scheme?

The Cycle to Work scheme is designed to help you save money on a new work bike and spread the cost of the bike over monthly tax-free instalments through your employer.

How does the scheme work?

There are a few different scheme providers out there each with their own variations but the basic idea is the same.

It’s a simple process:

  1. Your workplace registers with a scheme provider
  2. You choose the bike you want
  3. Your employer pays for it
  4. You pay your employer back through monthly instalments taken through payroll.

Salary sacrifice periods are for a minimum of 12 months (but can be for longer) and your employer can advise on the spending limit.

Green Commute Initiative allows for the repayments to be spread over 12-48 months (as agreed with the employer), and they are registered with the FCA for Consumer Hire.

How does the tax-free bit work?

Monthly payments for the new bike are taken from the employee’s gross salary i.e. before any tax is deducted.

You’ll be paying less tax and National Insurance every month that you’re paying off the bike.

This means that at the end of the scheme you’ll have saved up to 32% of the actual cost of the bike for basic-rate taxpayers.

And even more for higher rate ones (and you’ll have spread the cost into manageable monthly payments too).

With most providers, there is an end-of-scheme payment, as technically you have been loaned the bike and you have to buy it at what HMRC call a fair market value.

This usually works out around 7%, though the Green Commute Initiative only charges £1.

The scheme is easy to access and won’t take up much administration time for your employer.

There’s a financial benefit for your employer too.

They end up paying less employer national insurance contribution so they save about 13% on the cost of the bike.

So your employer pays for the bike from you in monthly instalments, and saves 13% in the process and gets a healthier, happier more productive staff member who doesn’t need a parking space.

Which schemes does Bicycle Doctor operate?

We are proud to operate a number of these schemes. When a bike is purchased through cycle scheme, any existing discounts applied to items will be removed. Additional information for the individual schemes we operate can be seen below:

  • Caboodle Technology https://caboodle-technology.co.uk/benefit/bike-to-work-scheme/
    • Bikes purchased through this scheme can be collected in person or delivered by courier
    • ID must be shown when collecting the bike, or provided electronically
    • There is no admin fee for this scheme

  • Cycle Solutions https://www.cyclesolutions.co.uk
    • Bikes purchased through this scheme can be collected in person or delivered by courier
    • ID must be shown when collecting the bike, or provided electronically
    • There is no admin fee for this scheme

  • Green Commute Initiative https://www.greencommuteinitiative.uk
    • Bikes purchased through this scheme can be collected in person or delivered by courier
    • ID must be shown when collecting the bike, or provided electronically
    • There is no admin fee for this scheme

  • Vivup https://www.vivupbenefits.co.uk
    • Biked purchased through this scheme can be collected in person or delivered by courier
    • ID must be shown when collecting the bike, or provided electronically
    • There is no admin fee for this scheme

  • Cycle 2 Work – sometimes known as the Halfords scheme https://www.cycle2work.info
    • Bikes purchased through this scheme must be collected in person
    • ID must be shown when collecting the bike
    • There is a 5% admin fee for this scheme

  • Bike 2 Work Scheme https://www.bike2workscheme.co.uk
    • Bikes purchased through this scheme can be collected in person or delivered by courier
    • ID must be shown when collecting the bike, or provided electronically
    • There is no admin fee for this scheme
  • Cyclescheme https://www.cyclescheme.co.uk/
    • Bikes purchased through this scheme must be collected in person
    • ID must be shown when collecting the bike
    • There is no admin fee for this scheme