Who are Cyclescheme?
Cyclescheme is the UK’s number one provider of tax-free bikes for the Government’s Cycle to Work initiative. It’s a brilliant programme where everyone wins – employees make big savings on new bikes, employers get a healthier workforce and save money too! Cyclescheme has a great track record in helping employers of all sizes to set up and run successful Cycle to Work schemes.

Do I qualify?
Your employer has to be willing to run the scheme before you can get your bike. Your employer can get a full information pack from www.cyclescheme.co.uk.

To qualify you must be an employee who is paying PAYE, and have a contract that outlasts the duration of the salary sacrifice period. You must be over 18 years old, earn more than the National Minimum Wage after the loan repayment has been deducted, and have completed your employer’s probationary period (if applicable).

How does the Scheme work?
Savings are made because your employer buys the bike from Cyclescheme and then hires it to you. You pay back the loan on your bike, accessories and safety equipment from gross rather than net pay. Your payments are deducted from your gross monthly salary.

What can I save?
Typical savings are between 30% and 50%., but the actual amount you pay depends on your personal tax band, and the way your company runs the scheme. Higher rate taxpayers will save more, employees whose company cannot reclaim VAT (the NHS, for example) will save less. If the employer uses external finance (ie your employer borrows the money to buy the bikes from an outside agent) then savings are normally about 5% lower. Finally, the fair market value payment needs to be taken into account when calculating the total savings.

How do I by a bike under the scheme?
The scheme uses a voucher system. Once your employer has entered into a contract with Cyclescheme, you need to sign an employee hire agreement that we supply or agree to the terms of the hire agreement online (this process is determined by your employer). You visit your local bike shop for a quote on a bike and accessories, which you enter onto our extranet system. When we receive the quote we will invoice your company, and provide a secure voucher once the hire agreement is signed. You take the voucher back to the bike shop to collect the bike.

Any questions?
Further details are on the Cyclescheme website at www.cyclescheme.co.uk. We can also advise with both the scheme itself and with selecting a bike once you have your coupon

If you’ve any further questions, please email us at info@woolseyofacton.co.uk or phone on 020 8994 6893.