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.
GREAT NEWS! Cyclescheme no longer has a £1,000 limit:
This recent update means your savings are no longer capped at £1,000 so you can use the scheme to save money on the total value of any request.
This is ideal for cycle commuters who like the idea of an electric bike or perhaps need more than one bike due to weather conditions or choices of route.
Saving on the total value of your bike package, rather than the first £1,000, means you will save more and have the right gear you need to cycle to work. Bike, clothing, locks, lights and more; it's all covered.
Here's how a bike to work scheme pans out...
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.