What is the Cycle to Work Scheme?
The Cycle to Work Scheme is an annual tax exemption which allows employers to purchase bikes and equipment to be loaned to employees as a tax-free benefit. Employers recover their costs via a 12 month salary sacrifice mechanism, whilst also saving money on their National Insurance contributions.
Evans Cycles Ride2Work can help you manage all aspects of the scheme and is follows HMRC and Department for Transport guidance.
The tax exemption is enabled via a process of salary sacrifice, whereby an employee agrees to sacrifice a part of their gross salary in return for a non-cash benefit, such as a bike and safety equipment through the Ride2Work scheme.
At the end of the agreed loan period the employer may transfer ownership of the bike and equipment to the employee for a one-off payment based upon the fair market value of the bike at that time. Evans Cycles Ride2Work offers a numer of options to facilitate the transfer of ownership.
Employers reduce their own NI contributions in line with the reduction in gross salary being made by their employees.
Evans Cycles Ride2Work can help you manage all aspects of the scheme and is follows HMRC and Department for Transport guidance.
The tax exemption is enabled via a process of salary sacrifice, whereby an employee agrees to sacrifice a part of their gross salary in return for a non-cash benefit, such as a bike and safety equipment through the Ride2Work scheme.
Savings for employees participating in the scheme can be as high as 42%. The savings are achieved by reducing gross salary, which means income tax and NI contributions are not paid on that part of the salary being sacrificed in exchange for the hire of a bike and equipment.
At the end of the agreed loan period the employer may transfer ownership of the bike and equipment to the employee for a one-off payment based upon the fair market value of the bike at that time. Evans Cycles Ride2Work offers a numer of options to facilitate the transfer of ownership.
Employers reduce their own NI contributions in line with the reduction in gross salary being made by their employees.
How it works
We can help any company large or small implement the Ride2Work scheme. Depending upon the size of your company and how you wish to manage the scheme the following steps can be completed very quickly to enable your employees to start cycling to work.
Step 1 – Employer completes our registration form to join the Ride2Work scheme
Step 2 – Promote the scheme to your employees. We can help you with a range of marketing materials and events to promote the employee benefits of Ride2Work
Step 3 – Employees visit any of our stores nationwide or browse our website to determine the value of the bike and safety accessories they wish to hire through the scheme. We offer massive choice of products with free test rides and expert advice available to ensure employees choose the right equipment.
Step 4 – Employee requests their certificate using our online system
Step 5 – Employer’s scheme administrator approves employee certificate request and ensures the hire agreement is completed.
Step 6 – Employer places their order with Evans Cycles Ride2Work in order to purchase the bikes and equipment. Invoice issued to employer or credit terms available.
Step 7 – Once approved certificates are issued by email (usually within 1 hour of approval) and can be redeemed in any of our stores nationwide or via our telephone mail order service.
Step 8 – Employee salary sacrifice commences in first pay period after joining the scheme.
Step 9 – At the end of the agreed hire term a transfer of ownership of the equipment from employer to employee can be undertaken. Evans Cycles Ride2Work provides a range of options to assist this process, click here for more information
Useful links for employers:
• Transfer of ownership options
• Company application
• Employer benefits
Step 2 – Promote the scheme to your employees. We can help you with a range of marketing materials and events to promote the employee benefits of Ride2Work
Step 3 – Employees visit any of our stores nationwide or browse our website to determine the value of the bike and safety accessories they wish to hire through the scheme. We offer massive choice of products with free test rides and expert advice available to ensure employees choose the right equipment.
Step 4 – Employee requests their certificate using our online system
Step 5 – Employer’s scheme administrator approves employee certificate request and ensures the hire agreement is completed.
Step 6 – Employer places their order with Evans Cycles Ride2Work in order to purchase the bikes and equipment. Invoice issued to employer or credit terms available.
Step 7 – Once approved certificates are issued by email (usually within 1 hour of approval) and can be redeemed in any of our stores nationwide or via our telephone mail order service.
Step 8 – Employee salary sacrifice commences in first pay period after joining the scheme.
Step 9 – At the end of the agreed hire term a transfer of ownership of the equipment from employer to employee can be undertaken. Evans Cycles Ride2Work provides a range of options to assist this process, click here for more information
Useful links for employers:
• Transfer of ownership options
• Company application
• Employer benefits
