WHAT’S THE PROCESS OF GETTING A TAX FREE BIKE FOR WORK?
- Step 1. Your employer needs to be registered with a Cycle to Work scheme. At Corley Cycles, we deal mostly with Cyclescheme, Bike2Work and NHS Bike to Work, but there are other schemes out there.
- Step 2. Visit Corley Cycles, choose the bike and any safety equipment and get a quotation.
- Step 3. Leave a small refundable deposit to allow Corley Cycles to hold the bike, or order one in, which will be ready to collect when you get your certificate.
- Step 4. Apply for a certificate online using the relevant Cycle to Work scheme website. Your employee will usually sign an online Hire Agreement at this time.
- Step 5. Once approved, a certificate will be issued to either your employer or directly to you, whichever is requested.
- Step 6. The certificate is then redeemed at Corley Cycles in exchange for the goods you were quoted for if you left a deposit you will have this refunded at this point. Salary sacrifice payments start.
- Step 7. At the end of the hire period the Cycle to Work scheme will offer you a choice; 1. Hire the bike for another 36 months where a one-off payment is made to continue with the hire agreement (normally 3% or 7% of the value of the bike dependant on the full market value), 2. Transfer ownership from the scheme to yourself for a one-off payment (normally 18% or 25% dependant on value), 3. Decide that you don’t want to keep the bike and let the cycle to work scheme have it.
Please note that although the above procedure applies to the vast majority of schemes there are some variations.
WHAT ARE THE SAVINGS?
With Cyclescheme, you can get a tax-free bike, which for most people means they save about 32% of the cost. Head to www.cyclescheme.co.uk/calculator to check out how much you can save.
See the table below as an example of the calculator:
If you would like any more information on Cycle to Work schemes then please pop into the shop or send us an e-mail to firstname.lastname@example.org.