How does the Cycle to Work scheme work?
The bike and equipment are leased to you by your employer who will deduct monthly ‘salary sacrifice’ amounts from your gross salary to cover the cost of the equipment.
- Because the deductions are from gross salary it means you pay less tax and NI, saving you 32%-42% (depending on tax banding) on a bike of your choice and/or safety accessories
- You can use the bike for either your full journey to/from work or part-journey, e.g. to/from the station. You can also use the bike for leisure cycling.
- The cost is usually spread over 12 months (or up to 18 months if your employer offers this).
What does ‘salary sacrifice’ mean?
Salary sacrifice means giving up part of your salary in exchange for a benefit, in this case the hire from your employer of a bicycle and /or cycling safety accessories. Salary sacrifice deductions are taken from your gross salary meaning you pay less tax and NI. This saves a basic tax payer approximately 32% on the cost of the equipment and a higher rate tax payer, approximately 42%.
For example, on a certificate value of £1000 over 12 months, the deductions will be £1000 / 12 (months) = £83.33 which will be taken from gross pay.
Exact savings will vary depending on personal circumstances and the specific way in which your employer operates the scheme.
Refer to the How it Works section for further details.
What cycling equipment can I get?
You can get any adult bike and a wide range of cycling equipment and clothing. You can select cycling equipment with a bike, or if you are already have a bike and are cycling to work you can choose to get equipment only, with all the same tax savings.
A wide range of cycling equipment can be included on Ride-to-Work and scheme guidelines (as set by HMRC) advise a ‘common sense approach’ should be taken when considering items to include.
As a guide any items which help make you safer, keep your bike safe, or help with your commute can be included, as follows:
Tools & maintenance items*
Replacement bike parts*
(must include some hi-vis or reflective detail)
Any high-viz items
Bags and bag covers
Tools & maintenance items – workstands not included
Child seats and car racks – can be included if your journey to work at any time involves using this equipment.
Replacement bike parts - to keep your bike safe on the road, for example: brakes, chains, cassettes, derailleurs, groupsets, wheels.
*Cycle clothing needs to contain some high viz or reflective detail.
Please note HMRC currently excludes the following items from the scheme:
Computers, including GPS units
Energy food and drink
To check if a particular item can be included, contact your local store or the Ride-to-Work Helpdesk on 01293 572325 or email firstname.lastname@example.org
Can I choose cycling equipment only, without getting a bike?
Yes, if you are already cycling you can get cycling equipment without getting a bike. The equipment must still be within the guidelines above.
Can I order components to build a complete bike?
Yes you can but this needs to be done through an Evans Cycles store as all components to make up a complete roadworthy bike must be ordered at the same time. It is not possible to order frames and forks online.
Is there a minimum and maximum amount?
The minimum is £100 and the maximum value you can apply for is £1000.
(Some employers are able to offer a higher maximum limit with a Consumer Credit Authority. Please check with your employer or the Ride-to-Work helpdesk for more information on this)
Can I buy equipment which is on sale, special offer or using Price Match?
Yes you can - which will give you even better savings through the scheme
Can I get more than one bike?
You can get two bikes - for example, if you cannot take your bike on the train but you need a bike at each end of your journey. Please note the scheme does not allow you to obtain a bike for someone else.
How do I purchase the equipment?
Once you’ve decided on the amount you want to spend, you request a Ride-to-Work Certificate and sign a hire agreement through our online system, which is then approved by your employer. Once approved your Ride-to-Work certificate will be emailed to you. You need to exchange the certificate for your selected equipment within 3 months from date of issue. Once your certificate has expired it cannot be re-issued or refunded.
Do I need to have chosen a bike before I apply?
Not necessarily but you can visit a store or go online to decide how much you’d like to spend on a bike and/or accessories. The main thing is to decide how much you want to spend and request this amount..
Check with your employer for their approval process and method of payment.
If your employer has a credit account with Evans Cycles your certificate will be issued immediately following approval by your employer, and you could get your bike the same day. If your employer does not have a credit account with us we will issue an invoice to your employer and when this is paid your Ride-to-Work certificate will be emailed to you. Invoices can be paid by BACS (which can take up to 3 working days to reach us) and also by credit card or same day bank transfer.
What if my certificate doesn’t equal the exact cost of the equipment?
If your certificate value is more than the cost of the equipment, it is not possible to get a refund but you can include more accessories. If your certificate value is less than the cost of the equipment you can add your own money to it.
How can I order and collect my equipment?
You can order the equipment at any Evans Cycles store, online or via our telephone contact centre. You can collect your equipment from any Evans Cycles store using our Click & Collect service or arrange for delivery to your work or home address. You need to exchange the certificate for your selected equipment within 3 months from date of issue.
I live too far to cycle to work, can I still get a bike on the scheme?
You can still get a bike and accessories through Ride-to-Work if you intend to cycle any part of your journey to/from work. You do not have to keep a mileage log but generally at least 50% of the bike’s usage should be for commuting purposes. You can also use the bike for leisure cycling.
Who is responsible for maintaining the bike?
It is your responsibility to maintain the bike but we do offer a free bike check-up after 6 weeks and all our stores have a full workshop. All Ride-to-Work certificates come with one year's free bike servicing.
Is the bike insured through my employer?
No. We strongly recommend that you insure the bike as your employer will still deduct the salary sacrifice payments even if the bike is stolen. Evans Cycles offer a low-cost comprehensive cycle insurance policy which can be purchased online here.
You can also insure bikes through household insurance and you should advise your insurer that the bike is through the scheme and is the property of your employer.
Can I use the scheme to buy a bike for somebody else?
Afraid not, Ride-to-Work is for employees only. The certificate is not transferable.
When do I start paying?
Your monthly salary deductions will normally begin in the next pay period after you have joined Ride-to-Work and signed your hire agreement. Your employer will start the deductions regardless of whether you have taken delivery of the bike or not. Check your pay slip to confirm salary sacrifice is underway.
Who does the equipment belong to?
The bike and equipment are leased to you by your employer who will deduct monthly ‘salary sacrifice’ amounts from your gross salary to cover the value of the certificate. At the end of this period, your employer may transfer title of the goods or extend the hire agreement for a longer period. Check with your employer to confirm their transfer of ownership policy.
What happens if I change my mind?
After signing the hire agreement you have a 14 day cooling off period if you change your mind. After that the hire agreement with your employer is not cancellable – see below.
If I don’t redeem my certificate can I cancel and get a refund?
The Hire Agreement is covered by the Consumer Credit Act and such agreements are not cancellable after a 14 day cooling off period. When you sign the hire agreement, you are agreeing to make a salary sacrifice in exchange for hiring cycling equipment. It is important therefore that you use your Certificate to select the cycling equipment as part of the agreement with your employer.
You need to exchange the certificate for your selected equipment within 3 months from date of issue. Once your certificate has expired it cannot be re-issued or refunded.
Can I pay off the balance early or pay over a shorter time?
Not usually. The commitment will run for 12 or 18 months depending on the agreement you have with your employer, unless your employer agrees to alter the terms of the agreement.
What happens if I’m off work?
If you take maternity leave, unpaid leave, holiday or sick leave that takes your monthly salary to below the amount of your salary sacrifice, your employer will suspend your payments until you are earning again. Check with your employer.
What happens if I leave my employer?
If you leave your employer before you have completed the salary sacrifice term, any balance remaining must be repaid from your final net salary, i.e. without tax/NI savings. To take ownership of the bike a transfer of ownership process will also apply within the HMRC Fair Market Valuation guidelines. Your employer will be able to advise which transfer option would apply to you.
I am self-employed - can I join the Ride-to-Work scheme?
You can only join the scheme if you are paid via PAYE in order for the salary sacrifice deductions to be made.
Can I take part in Ride-to-Work more than once?
Unless your employer advises otherwise you can join the Ride-to-Work scheme again after your salary sacrifice deductions have ended. Generally the salary sacrifice is over 12 months, but it could be up to 18 months. Some employers have specific rules regarding how often you join the scheme so check with your employer if you are not sure.