At the end of the hire period, Bike to Work Ltd will contact employees to discuss the options available. The most attractive option for employees will be to pay a small, refundable deposit (3% or 7% of the equipment value*) and continue to use the bicycle for an extended period of up to 36 months.
What happens at the end of my Cycle to Work scheme?
What happens at the end of the Cycle to Work agreement? Technically, you’ve hired your bike from the scheme for the length of your agreement and you’ve got a few options at the end of it: Enter into a new agreement, paying a small deposit to rehire the bike. … Give the bike back.
Do you have to pay back Cycle to Work scheme?
Own it later – you pay a deposit of 3 or 7% of the bike’s value (3% if the bike was initially under £500 and 7% if it was initially over £500). You pay nothing more. When the bike is 4 years old you take ownership of the bike. If you do not wish to own the bike you and return it and we will refund your deposit.
Does cycle to work cost the employer?
Does the scheme cost anything for an Employer to implement? The scheme is free of charge to set up and costs nothing to run. The Employer makes the initial purchase and then leases the bike/equipment to the Employee via a salary sacrifice, until the full amount is recovered.
Is cycle to work a salary sacrifice?
Cycle to work operates as a ‘salary sacrifice’ employee benefit. … The salary sacrifice is taken from their gross salary (before tax) which means that the employee will pay less Income Tax and National Insurance (NI) and that the employer will reduce their National Insurance Contributions (NICs) bill.
Can I pay off my cycle to work scheme early?
If an employee leaves the scheme early, the bike or equipment will remain the property of the employer. … As such, they will no longer be able to take advantage of the savings made by paying for the bike or equipment from their gross salary before tax.
How much do you pay on the bike to work scheme?
The scheme applies to bikes and equipment up to the value of €1,250 and for pedelecs or e-bikes and related safety equipment up to the value of €1,500. As an employee you can use the scheme once every 4 years.
Is the cycle scheme worth it?
The Cycle to Work scheme also allows you to buy accessories alongside the bike and this is definitely something you should take advantage of. In fact, we reckon it is worth using the scheme to buy two bike locks, a good set of lights, a helmet and some high-quality bibshorts.
How does the Cycle to Work scheme save me money?
Cycle to Work is a ‘salary sacrifice’ benefit. What does that mean? You make a saving by paying for the bike and/or accessories directly from your gross salary (before tax). … Your income tax and national insurance are based on the lower figure, so the amount you pay is less.