In a nutshell a ride to work scheme enables you to pay for a bike over the course of a year with hire payments deducted from your gross monthly salary i.e. before tax.
1. The employer buys a bicycle and accessories through one of the ride to work schemes i.e. Cambridge bike to work/Cyclescheme.
2. The price of the bicycle/accessories is divided by 12 and this amount is deducted from the employees monthly salary via a salary sacrifice. Throughout these 12 months the employee is leasing the bicycle from the employer. The employee makes savings as they will not pay any Income Tax or National Insurance on the salary sacrifice.
3. At the end of the 12 months hire agreement, the employee has two options, either purchasing the bicycle from the employer at 25% of the original price to gain outright ownership or, preferably, the employee extends the hire agreement for a further 36 months whereby the monthly payments are zero, and a small refundable deposit of 7% is paid up front. After the 36 months are up, the bike is yours.
We are one of the biggest Cyclescheme providers in Cambridge and are experts in helping you get going with ride to work, either with an established provider as well as our own better value Cambridge bike-to-work scheme.