Cycle to Work allows an employer to offer an employee a cheaper way to purchase their ideal bicycle.
Choose your bicycle in store, hire it from your employer for an agreed length of time (usually 12 months), and then purchase it for a small percentage of its original price. This usually results in a saving of over 25% from RRP for a standard rate taxpayer. Even greater savings are available for higher rate taxpayers.
The scheme can also be used to purchase relevant safety accessories and clothing for use with the bicycle. For cyclists who already have a bike, some schemes will also allow for “accessory only” applications. Certain accessories are excluding, including but not limited to, computers, aero bars and boot racks.
To find out if you’re registered, ask around your place of work, or with your manager, HR department etc.
Employees can choose a bicycle and/or accessories up to a total of £1000. In recent years, some employers have increased the £1000 limit.
After receiving your bicycle and redeeming your voucher, you will pay it back through your monthly wage packet, before tax, netting you an average saving of 25%.
At the end of the scheme you will be given the opportunity to purchase the bicycle. This is usually at 5% of the fair market value of the bicycle. This usually amounts to not much more than the previous monthly payments.
Sale bicycles and accessories are not included for purchase on Cycle to Work schemes. Cycle to Work vouchers cannot be used in conjunction with other existing offers and/or discount codes.
You pick a bike and/or accessories costing a maximum of £1000 (there are some exceptions where you can go over this if your work holds a consumer credit licence).
Its deducted from your gross salary over a year (you pay less tax and NI), although we accept several scheme vouchers we find this a handy calculator:
At the end of the 12-month ‘hire’ period, you buy the bike from your employer for its HM Revenue & Customs (HMRC) approved Fair Market Value (FMV).
What Vouchers do you accept?
At Dales Cycles we have partnered with the biggest Tax-Free Schemes around including:
- Halfords Cycle2Work
- Salary Exchange
- Bikes 2 Work
- Green Commute Initiative
If you can't see your voucher listed, please contact us for a chat and we will help if we can.
Step by Step
Step 1. Once your employer is partnered with any of the schemes, you can visit our stores or call us to choose your bike and any extra safety equipment you might need, up to the value of your voucher.
Step 2. We will provide you with a written quotation to help you apply for a certificate. Usually this will be done online, or through your HR department.
Step 3. If approved, a certificate/voucher will be posted or e-mailed to you.
Step 4. Let us know when you've received your voucher so that we can safety check your bicycle and ensure everything is ready for collection/delivery.
Step 5. Redeem your certificate in store or over the telephone in exchange for your chosen bike and accessories.
Dales Cycles reserve the right to exclude chosen products from purchase with Cycle to Work vouchers.
These usually include products sold in conjunction with existing offers/vouchers, or sale/reduced items.
Find Out How Much You Could Save
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