"Choose a bike, hire it for a year, then snap it up for a fraction of what it’s worth. It’s like a year-round sale, with interest free credit."
Here at Aberaeron Cycle Works we partner with Cyclescheme to offer employees the very best choice of product. If you cycle to work, you can save up to 39% on a new bike and safety equipment thanks to a government backed scheme that makes buying a new commuter bike much more affordable. The Cycle to Work Scheme is a salary sacrifice. This means the cost of a new bike and equipment is deducted from your salary as a non-cash benefit, so you save on tax and national insurance. Your employer effectively buys the bike and equipment on your behalf, then leases it back to you through an interest-free salary sacrifice scheme.
STEP 1 - DO YOUR HOMEWORK
The most important element of switching to a cycle commute, is to spend a bit of time thinking about what you’ll need. Think about how often you’re planning on cycling, what route you’ll take, how far you’ll go and what accessories you’ll need. Thankfully we are experts in this field and can help find the perfect package for you. So, if you do nothing else, pop by our store and have a chat with our experienced sales staff.
STEP 2 - SUBMIT YOUR APPLICATION
This couldn’t be easier. If your employer is already a part of cycle scheme, they’ll have a unique weblink that you’ll need in order to submit your application. If your employer isn’t signed up, then get them on board - it’s free, and they literally need to click a few buttons to get everything moving. On the application page, you’ll be guided through a very simple form which asks for your work details, contact information and the value of the cycle scheme certificate you’re applying for. Hit ‘submit’ and your employer will receive a copy of your application to approve. At this point, you’ll also get a copy of your Hire Agreement.
STEP 3 - COLLECT YOUR CYCLE SCHEME PACKAGE
With your application approved and paid for (by your employer) it’s time to exchange your cycle scheme certificate for your cycle scheme package. Pop by the store and we will get you fitted to your bike and on your way. At this point your salary sacrifice and Hire Agreement will kick in. This means that for the next 12-months you’ll be paying a set amount from your salary each month in exchange for the hire of your cycle scheme package from your employer - this is also where you make your income tax and national insurance savings (32% standard rate, 42% higher rate).
STEP 4 - END OF HIRE AND TRANSFER OF OWNERSHIP
When your Hire Agreement finishes, you make one final (small) payment, and you’re done! Sounds confusing? It’s not! Your tax savings happen because your cycle scheme package has been hired from your employer. To retain these savings, a further ‘transfer of ownership’ payment has to take place (or else the tax man will be on your back). For a cycle scheme package under £500 you’ll be paying 3% of the original value, and for a package over £500 you’ll be paying 7%. The bike then remains ‘hired’ for a further 36 months (but with no further monthly payments) until ownership is officially transferred to you at no further cost. This means a worst case scenario of a payment of £70 and saving of at least 25%.
Reasons to sign up
- The scheme doesn't cost anything to set up.
- The scheme can be easily completed online and you will be ready to offer your employees a bike within 2 weeks.
- It's a great thing to offer to your employees simply because they can save up to 40% off the cost of a new bike.
- Cycling to work helps you stay fit and healthy, burns a lot of calories, and reduces your carbon footprint.
- This all makes for happier, healthier and more motivated staff.
If you need any further questions answered then please head over to their website where you will find a comprehensive list of FAQ's here https://help.cyclescheme.co.uk/