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Employers Ride to Work Cycle Scheme

Evans Cycles Ride-to-Work is a leading provider of the Government’s Cycle to Work scheme. This popular employee benefit provides excellent tax savings on our wide range of bikes and equipment. The choice could be a new bike plus high-vis clothing and safety accessories or simply new kit for the commute – it’s all available through Ride-to-Work with up to 42% tax savings. If you have any queries call our helpdesk on 01293 572 325

Why offer a Ride-to-Work scheme?


For employers:


It’s easy to administer and it’s free

Thanks to our simple processes, fast online system and full helpdesk support administering your Ride-to-Work scheme is hassle-free. And with no set-up fees it’s a win-win for you and your employees.

 

Healthier, happier employees are more productive

More than 70% of employers have said the Ride-to-Work scheme has had a positive impact on their organisation in terms of improving employee health. *

Good for business and for the environment

Offering a Ride-to-Work scheme is one way to demonstrate that your organisation wants to reduce its impact on the environment. And with more employees riding to work you’ll place less demand on car parking spaces and local transport infrastructure.

Employers save money too

Don’t forget that each time an employee joins the Ride-to-Work scheme employers reduce their own National Insurance Contributions. See example savings below.

 
For employees:


Unbeatable savings on cycling equipment

 

The savings available through Ride-to-Work mean that employees can save hundreds of pounds on our huge range of quality cycling equipment; which is typically 32%-42% of the retail cost. They will also benefit from spreading the cost interest-free through their salary.

 

Employees can spend £100 - £1000 with the savings being made by reducing tax and National Insurance on the amount “salary sacrificed” from gross pay over 12 monthly instalments. For a basic rate tax payer that’s a saving of 32%, meaning they can save over £300 on their choice of a new bike, clothing and accessories.

 

In addition to the great tax savings employees receive these exclusive Ride-to-Work perks to ensure some unbeatable savings:

 

  •   Up to £60 of free accessories
  •   One year’s free bike servicing worth £120
  •   Take advantage of sale offers and price match for even bigger savings

 

Get fit, reduce stress and stay healthy*

 

86% of employees believe cycling to work has led to health benefits including weight loss and reducing stress. 70% of scheme users are driving less since getting on their bike.

 

It doesn’t just benefit existing cyclists; with more than 60% of scheme users stating they were novice or occasional cyclists prior to joining the scheme, it really is a benefit for everyone.

 

On average scheme users save £64.70 per month compared to other modes of commuting.

 

And don’t forget the bike can be used for leisure riding as well as commuting.

 

* Cycle to Work Alliance Survey, December 2015 & July 2017

How it works

 

 

You can set up a Ride-to-Work scheme quickly and easily, and it’s absolutely free. In fact your new Ride-to-Work account can be up and running within one hour. If you have any queries call our helpdesk on 01293 572 325

 

How much will this cost the employer?

The only cost to the employer is the initial purchase of the cycling equipment which is then hired to the employee. The employer recovers the cost of the equipment via the salary sacrifice over 12 months whilst making savings on the employers NI contributions.

Would you like your scheme to be cash neutral? We can help you finance it so it doesn’t affect your company’s cash flow at all. Please contact us at ride-to-work@evanscycles.com for further details.


Step 1 – Sign-up with Evans Cycles Ride-to-Work

Complete the employer registration form here. We’ll email you confirmation of your account number enabling you to launch Ride-to-Work straight away.

 

Step 2 - Promote your scheme to employees

Login to your account and download free marketing materials to spread the word about your new Ride-to-Work scheme, or if you would prefer we can send you printed flyers and posters by post. Our helpdesk team can answer any employee queries.   For employers with more than 250 employees we provide an account manager who will support you with all aspects of the scheme including literature, events, roadshows and presentations.

 

Step 3 - Approve employee applications

To apply for the scheme, your employees complete an application form and hire agreement, provided through our dedicated online system. You’ll receive an email notification when an employee applies, so all you need to do is just log in and approve!

 

Step 4 - Certificates dispatched to employees

Once you have approved an application and paid the invoice we email a Ride-to-Work certificate to the employee, which can be redeemed in store, online or over the telephone. We will issue you with either a pro-forma invoice, or provide credit terms for larger employers.  

 

Step 5 - Salary sacrifice commences

Once you have approved an employee to join Ride-to-Work you will set-up salary sacrifice deductions from your employee’s gross pay over 12 months. .


Setting up your scheme

 

Paying for the equipment

 

As the employer you will purchase the cycling equipment from Evans Cycles and then hire it to your employees via salary sacrifice, enabling you to recover the cost over 12 or 18 months. The cost of the bike and accessories is typically the value of the salary sacrifice, up to a maximum of £1000.

 

There are 3 ways to pay for the equipment:

 

1. Pro-forma invoice – this is the default option for the majority of our clients. When you approve an employee application we will send you a pro-forma invoice by email. When this is paid we will send your employee their Ride-to-Work certificate, which they can redeem for their chosen cycling equipment.

 

2. Credit terms – if there are more than 10 employees wishing to join the scheme imminently we can provide credit terms. This means that as soon as you approve the applications we instantly email the certificates to the employees, and then send you an invoice for the amount of salary sacrifice with 30 days’ payment terms. Please contact us to arrange credit terms.

 

3. Asset finance - if you would like your scheme to be cost neutral without impact on cash flow we can introduce you to our asset finance partner, Akira Financial. This option means you will receive finance to fund the cost of purchasing the equipment on behalf of your employee. The cost of finance can be added to salary sacrifice, meaning there are no additional fees for the employer. For details contact ride-to-work@evanscycles.com

 

How the savings work

 

Employees:

 

Employees make savings via salary sacrifice. By reducing gross pay in exchange for the benefit (cycling equipment) employees do not pay income tax or national insurance on the part of the salary they have sacrificed. The maximum amount of salary sacrifice is £1000, although employees can choose to add their own funds on top of the salary sacrifice amount.

 

Example salary sacrifice amount £600
Gross monthly salary sacrifice amount over 12 months £50
Basic rate tax payer
Net monthly cost after tax savings £34
Total cost of cycling equipment after savings £408
Total savings in tax (20%) and national insurance (12%) £192
(32%)
Higher rate tax payer
Net monthly cost after tax savings £29
Total cost of cycling equipment after savings £348
Total savings in tax (40%) and national insurance (2%) £252
(42%)

 

So in the example above a basic rate tax payer would pay £408 for £600 worth of cycling equipment, whilst a higher rate tax payer would pay £348 for that value of equipment. Plus they have the additional benefit of spreading the cost interest free through their salary.

 

We provide employees with a savings calculator

 

Employers:

 

Using the £600 example above the employer would make a national insurance saving of £82.80. This is based on 13.8% of the salary sacrifice amount.

 

Each time an employee enters salary sacrifice the employer will make a saving on their employer’s national insurance contributions. This is because total gross salary has been reduced and lower contributions are required from the employer.

 

Salary sacrifice

 

When an employee applies to join the Ride-to-Work scheme you will approve their application and then set-up the salary sacrifice deductions through your own payroll system. Typically the first deduction begins from the next payroll following approval to join the scheme.

 

For example, on a salary sacrifice of £600 over 12 months, the deductions will be £600 / 12 (months) = £50. This is the amount the employee will see on their payslip. This is the gross amount before tax savings, and the true cost to the employee each month would be £34 if they are a basic rate tax payer or £29 for a higher rate tax payer.

 

Salary sacrifice is the process which enables employees to benefit from the tax savings, and for employers to recover the initial cost of purchasing the cycling equipment.

 

The default salary sacrifice term is 12 months, but it can be up to 18 months. Employers can set the salary sacrifice term from the control panel within the Ride-to-Work system.

 

End of scheme process

 

The tax benefits available through the Cycle to Work scheme are provided on the basis that employers are hiring the equipment to their employees, with the employee paying the cost of the equipment out of their gross pay through salary sacrifice.

 

At the end of the salary sacrifice term, scheme guidelines require that any transfer of ownership takes place in accordance with the Fair Market Value. There are however different options for managing this end of scheme process.

 

One of the benefits of Evans Cycles Ride-to-Work scheme is our free and unique Transfer4You service. At no extra cost, Evans Cycles will manage the end of scheme process entirely, giving employees the option to continue to use the equipment free of charge.

 

For employers Transfer4You ensures there is no end of scheme administration whilst also ensuring maximum scheme savings for employees without any further charges or deposits. When reviewing scheme providers, it is important to understand how end of scheme charges are applied.

Why choose Evans Cycles

 

We work with thousands of employers nationwide. They have chosen Evans Cycles Ride-to-Work for our easy-to-use online system and outstanding account management, plus the peace of mind that their employees can benefit from expert service, quality products and fantastic savings from a single provider.

 

We offer your employees the convenience of shopping at any of our bike stores nationwide, online or over the phone with Click & Collect or home delivery. We also partner with local bike shops where an Evans Cycles store is not available.

 

Our clients are large and small and operate across all industry sectors. They include City of Edinburgh Council, Citi Bank, easyJet, Facebook, London Fire Brigade, Mercedes, Metropolitan Police, and Virgin Media. We also work with many leading employee benefits providers.

 

For Employees
Exclusive perks Up to £60 of free accessories plus one year’s free bike servicing worth £120.
Even bigger savings In addition to the tax savings take advantage of all sale prices and our Price Match guarantee
Quality & Service The UK’s best range of quality cycling brands under one roof. Free test rides and full workshop at all stores. 30 day exchange on any bike, even if it’s been ridden.
Convenience Shop in-store, online or over the phone with Click & Collect or home delivery.
No ownership charges Unlike other scheme providers our Transfer4You service means no hidden costs for employees at the end of their salary sacrifice which could save them up to £70.

 

For Employers
Full service solution We do everything from setting-up the scheme to supplying the bikes, with a dedicated account manager and helpdesk service.
Simple administration secure easy to use online system reduces administration with all documents supplied and full reporting functionality.
Transfer4You Our exclusive free end of scheme service reduces administration and maximises savings for employees.
Flexible financing We can provide credit terms to reduce invoicing administration, or introduce you to our asset finance partners.
Marketing A wide range of free promotional materials are available as well as on-site or in-store events for your employees.
Employers FAQ's

 

How does my organisation apply for an account with Ride-to-Work?

 

If you are an employer, you can apply for an account here

 

Who does the equipment belong to?

 

It belongs to the employer and is hired to the employee for the term of a Hire Agreement.

 

What happens at the end of the scheme?

 

There are several options open to the employer regarding transferring ownership and allowing on-going use of the bike. Refer to End of Scheme Transfer of Ownership for further details.

 

How much will this cost the employer?

 

The employer purchases the cycling equipment from Evans Cycles and recovers the cost from the employee via salary sacrifice. Therefore the initial cost of the equipment is fully recovered over 12 months. The employer will also make a corresponding saving in employers National Insurance Contributions based on the amount of salary sacrifice made by employees participating in the scheme.

 

If the employer does not wish to make the upfront purchase of the equipment we can introduce our finance partner, who is able to provide funding which will make the scheme cash neutral. For further detail on funding email ride-to-work@evanscycles.com

 

Does the employer need to apply for dispensation from HMRC to provide Ride-to-Work?

 

No. We provide all the necessary forms and agreements.

 

Does my organisation need credit authority to offer the scheme?

 

No. The Financial Conduct Authority states that a Cycle to Work Scheme does not require it’s authorisation where the total amount of an employee’s salary sacrifice does not exceed £1,000.

 

To offer your employees an improved benefit with a higher limit you will require Consumer Credit Authorisation, which can cost as little as £100. Read our useful advice guide for further information.

 

What are the rules regarding maternity leave?

 

If an employee goes on maternity leave during the salary sacrifice period and their salary falls below NMW the employer has the option to initiate a repayment holiday or to continue with payments. Employers would need to supply the employee with an amendment to the hire agreement for signature. The Office of Fair Trading rules state that if the hire agreement term runs over 18 months the employee has a right to cancel the contract and therefore employers need to keep this in mind when extending the term of the salary sacrifice. Employers are not liable to make the payments while the employee is on maternity leave.

 

I am self-employed - can I join the Ride-to-Work scheme?

 

You must be paid via PAYE to make the salary sacrifice.

 

Would an employer be liable?

 

This is highly unlikely. Read our fact sheet.

 

What happens about stolen bikes and insurance?

 

Insurance of the bike and equipment is the employees' responsibility. We recommend Evans Cycles Insurance which is a low-cost comprehensive insurance policy for cyclists.
If a bike being hired through the scheme is stolen we generally recommend that it can be replaced via insurance for the same or similar product where the employer is happy to accept this. Replacement bikes should continue to be used for the purpose of cycling to work for the remaining duration of the hire agreement.
In cases where the equipment is not insured the employer generally requires the balance of outstanding payments to be made. No Fair Market Value fee is required on stolen cycles.

 

Who is responsible for maintaining the bike?

 

It is the employee’s responsibility to maintain the bike. Evans Cycles offers a free bike check-up after 6 weeks and all stores operate a full workshop service. And don’t forget all employees joining Ride-to-Work receive two free services during the first year of using their new bike.

 

What happens if an employee leaves before their salary sacrifice is completed?

 

If an employee leaves before completing their salary sacrifice term, any balance remaining should be repaid from the employee’s final net salary, i.e. without the tax/NI savings. This reflects the early termination clause contained within the Ride-to-Work hire agreement.
It is expected that the employee will wish to take ownership of the bike at the same time and the employer can choose:

  • To collect the applicable FMV of 18% or 25% of the original value, dependent on whether the original value was below £500 or above £500 (as per HMRC table below)
  • To declare the FMV figure as a benefit in kind on a P11d
  • To transfer the equipment to Evans Cycles earlier within the Transfer4You arrangement

 

If you are collecting FMV please note:
Employers can choose to collect a lower amount of the final balance plus FMV in order to equal the total amount due to the employer for the original purchase of the equipment. This way the employee is not charged more than is necessary and the employer is not out of pocket.
For example:
£1000 bike = £83.33 per month Employee leaves after 9 months with an outstanding amount of £249. Employer could collect FMV (£250) in place of the outstanding balance.
Employee leaves after 5 months with an outstanding amount of £583. Employer could collect FMV (£250) and £333 outstanding balance.

There are no benefit in kind implications with not collecting the full salary sacrifice balance. FMV must be collected otherwise there are benefit in kind implications. A letter should be provided to the employee confirming that FMV has been collected which transfers ownership to the employee.