Cycle To Work Scheme – A guide from Helix Sport
There are many ways to offer employee benefits today, from discounts to health schemes. When employees value particular benefits it promotes loyalty, happiness and productivity. We know that offering employee benefits can increase attractiveness to prospective employees; help keep existing employees and can possibly improve employee health by promoting healthy living. One such benefit related to health and wellbeing is the cycle to work scheme.
What is it?
Cycle to Work scheme is a Government scheme within the Green Transport Plan that allows employers to provide bikes and bike accessories to their employees as a tax free benefit. Through a salary sacrifice scheme, employees can enjoy savings of up to 42% on bikes and accessories. Hire payments are taken from an employee’s gross salary and these hire payments are not subject to tax and NI contributions. It’s free for employers to join and it is easy to administrate.
The employer owns the bike and accessories with the employee leasing them from the employer. Generally, ownership of the bike is either transferred to the employee at the end of the hire agreement (with the employee paying a Fair Market Value for the bike) or another lease agreement is agreed.
The benefits to employers are:
National Insurance contribution savingsAn employee benefit that promotes health and wellbeing
The benefits to employees are:
Savings of up to 42% on bikes and accessories up to £1000. Accessories include safety equipment, such as helmets, lights, shoes, pedals, clips, locks and chains, maintenance equipment and more.
If you are self-employed, you can still sign up, but you do need to be receiving a salary through PAYE scheme.
The process is really simple. Employees visit a bike retailer signed up to cycle to work and select a bike. The retailer provides a quotation for the employee to submit to the scheme for approval. Once approved, the employee collects the bike from the retailer and starts enjoying many miles of happy riding. At this point, the employer reclaims the VAT and pays the scheme provider the full value of the bike and salary sacrifice commences. At the end of the hire agreement, and the provider offers the employee their options of a continued hire agreement or potentially a buy out option.
Helix Sport can help you through the simple cycle to work scheme process – we can explain how it works for the company and for employees and help promote the scheme in your workplace, answering any questions along the way. We can help with the fun bit too by being the retailer of choice for the scheme, helping individuals with the selection of their new bike. We know that for some, choosing the brand and type of bike that is right for them can be tricky. We’ll help customers with their brand and model choice, based on listening to what kind of cycle route they have and how they ride; we’ll size them up for the right frame and advise on accessories.
We’ll also invite customers back to the store after a few weeks to complete a six week safety check, make any adjustments to the bike and help with any questions.
Helix Sport is a new sports retailer in Dorridge, Solihull opening in July. Helix Sport has handpicked bikes from Specialized, Cannondale and Cervelo, as well as awesome bike accessories from leading brands. In store, we have a workshop for bike build, service and repair so we’ll not only get you on the road, but help keep you riding. For customers wanting a full assessment of how they ride their bike and how it is set up, we offer a Retul Bike Fit Service. We also offer Running and Swimming products so once we’re open, pop into store and say hello!
For more information, email us now at [email protected]
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