What is the Cycle To Work scheme?
East Street Cycles has partnered with Bike2Work and Cyclescheme cycle to work schemes. Both offer quick services to help provide your new bike and accessories at a lower cost to you and spread out over 12 months. This allows you to have a nice new bike and accessories, right now without having to pay the full cost.
How does the Scheme work?
The cycle to work scheme allows you to get up to £1000.00 worth of bike and safety equipment through your employer. Once you have collected your new bike and accessories to the voucher value, you’ll pay the cost back to your employer over 12 months. Your employer owns the bike until the loan has been paid in full. This means at the end of the loan, you’ll have to pay a small fee, the fair value of the bike, to transfer the ownership to you. It is best to speak to your employer about this as there are a few ways to reduce the payment.
If your company has a Finance Credit Licence, it may be possible to have a higher limit.
Below are a couple of examples.
Standard Tax Band
Whyte Carnaby: £599.00
Endura Hummvee Helmet: £42.99
Kryptonite New York Lock: £74.99
Total cost of bike and accessories: £716.98
Income tax saving over hire period: £143.40
Employee NI saving over hire period: £86.03
Final Cost of Bike and accessories: £487.55
Cost to you each month: £40.63
Percentage Saving: 32%
Total Savings: £229.43
Higher Tax Band
Trek FX 3 Disc: £650.00
Bontrager Flare and Ion Lights: £59.98
Endura MT500 Helmet: £149.99
Kryptonite New Your Mini Lock: £79.99
Total cost of bike and accessories: £939.96
Income tax saving over hire period: £375.98
Employee NI saving over hire period: £18.80
Final Cost of Bike and accessories: £545.18
Cost to you each month: £45.43
Percentage Saving: 42%
Total Savings: £394.78
What can I purchase with the Cycle to Work Scheme?
You can purchase any bike and accessories that you may require to ride into work. We find most customers choose locks, lightsets and a helmet with their bike. In general, if it can be fitted to your bike you can include it on your voucher. below is a small list of allowable items:
- Cycle helmets which conform to EN1078 safety standards
- Bells and bulb horns
- Locks and chains. (We recommend to spend a minimum 10% value of your bike on a lock)
- Mudguards and Racks
- Pannier Bags and back packs
- Reflective and high-visibility clothes, including cycle clothing
- Child Seats
- Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs.
Some rail services don’t allow bikes during peak times. For this reason, the scheme allows you buy two bikes with one voucher. However, there are a few items which cannot be included. These are:
- Cycle computers, including GPS
- Tag a Longs and Children’s Buggies
- Car Racks
- Energy Products
- Cycle trainers or other products used solely for racing
- Bikes for Partners, including tandems
- Children’s bikes
What if I want to spend more than £1000.00?
You are allowed to top up your voucher if you spend more than £1000.00 However, it is best practice to ask your employer if they allow you to do so. If you spend over your voucher limit, this will not form part of your salary sacrifice and therefore you would only make savings on the first £1000. All equipment will remain the property of your employer during the hire agreement. If a company wishes to allow employees to purchase equipment over the £1000 limit and make savings on the whole amount, they will need limited permission from the Financial Conduct Authority.
I want to buy my bike from you using the Cycle to Work Scheme. What are the next steps?
It’s easy to do and there are usually 7 steps to follow
- Check to see your employer is signed up to Cyclescheme or Bike2Work
- Pop into our Farnham or Walton on Thames stores and choose your bike and accessories
- Submit the quote to your employer
- Wait for your voucher
- Contact us when your voucher has arrived and arrange a collection time
- Pop in store and swap your voucher for your brand new bike
- Ride home with a big smile on your face, knowing you’ve just saved some money and bought a new bike
When collecting your bike, we’ll need to see some ID. Passport or Drivers Licence with a picture is accepted. On rare occasions, we may ask for a deposit∗ to hold the bike. This allows us to secure the bike and accessories until your voucher arrives. When you pop in to collect your bike we’ll happily refund the deposit in full.
∗ In some cases, if a voucher is cancelled we cannot refund the deposit, however, you are welcome to use it to purchase other goods or services.