What is a cycle to work scheme?

The Cycle to Work salary sacrifice scheme is a great way to increase staff access to bikes. The scheme enables PAYE employees to spread the cost of purchasing a bike and equipment whilst benefiting from tax and national insurance savings. It is a government initiative, allowing employers to purchase and ‘loan’ bikes and equipment to their employees as a tax-free benefit.

How it works:

  • Employees receive a voucher of an agreed value that they can spend in selected shops and repay it over the course of the agreed ‘loan’ period.
  • Payments are deducted from monthly salaries before income tax and national insurance contributions, leading to savings for both employees and employers.
  • Ownership of the bike/equipment is transferred to the employee with the final instalment.

 

Can I purchase a bike from Bike for Good using a Cycle to Work scheme?

Bike for Good is a member of CycleScheme and the Green Commute Initiative salary sacrifice schemes. 

 

How do I know if my employer is part of a Cycle to Work scheme?

Usually information on the Cycle to Work scheme would be included in the staff handbook and ideally mentioned during staff inductions. If you are not sure, contact your HR department. 

 

If my employer is not part of a Cycle to Work scheme how can I encourage them to join one?

  • Invite your employer to register with Cyclescheme
  • Your employer registers with Cyclescheme 
  • You choose a bike and accessories
  • You apply to the scheme
  • Your employer approves your request
  • You get a brand new bike and equipment
  • Pre-tax payments are deducted from your salary
  • After 12 months the cheapest option is ‘own it later’ where you pay a 3-7% deposit then after 3 years ownership of the bike is transferred to you. 

 

How to register with the Green Commute Initiative:

  • Share the Green Commute Initiative briefing document and the Instant GCI flyer with your employer. 
  • Get a quote for a bike and equipment from a registered bike shop, e.g. Bike for Good! 
  • Complete an instant GCI form (if less than 1,000 employees)
  • This generates a proforma invoice for a GCI voucher covering the cost of the bike and equipment
  • Send this invoice to your HR department.
  • Your employer pays this amount to GCI. 
  • GCI issues a Salary Sacrifice Agreement and a Hire Agreement. The Salary Sacrifice Agreement is between you and your employer, it details the monthly payments and repayment period you have agreed with your employer (usually between 12 and 60 months). The 3 month Hire Agreement is between you and GCI. For the following 5 years and 9 months, GCI makes a free of charge loan, after which ownership is transferred to the employee for £1 (so the transfer of ownership is clear to HMRC). 
  • GCI pays the bike shop and issues a collection voucher to the employee.
  • You make monthly payments through your salary. Your gross pay (before tax) is reduced by the value of the voucher, meaning reduced tax and national insurance payments. Depending on your tax rate, you’ll save either 32%, 42% or 47% on the cost of the bike and equipment.
  • After 6 years you pay £1 to GCI and the bike is yours.

 

What types of bikes are available?

Pedal Bikes

Dawes, Raleigh, Claud Butler, Forme, 6KU, Aventon, BLB, Basso, Tifosi, Cinelli, The Light Blue and Polygon brands. 

Ebikes

Dawes, Raleigh, Ridgeback and Forme brands.

Cargo & Ecargo Bikes

Raleigh, Ridgeback, Omnium, Tern, Butchers and Bicycles, Harry Vs Larry, Yuba, Carla Cargo and Urban Arrow.

Bike for Good can provide free trials of ecargo bikes for employers. On request only and subject to availability, we can arrange short trials of our ecargo bikes for individual customers. For more information please contact glasgow@bikeforgood.org.uk 0141 2485409.

Accessories

A range of lights, helmets and mudguards are also available and can be purchased using Cycle to Work vouchers.

 

How do I order a bike from you?

Bike sales are currently only possible on Saturdays from 9am to 5pm at our Glasgow West Community Hub

 

Contact Us

Please contact us to enquire about stock and to place an order. 

 

Cycling Friendly Employer

Membership of a Cycle to Work scheme is one of the key criteria for Cycling Scotland’s Cycling Friendly Employer Award. Applicants receive 1 to 1 support to improve cycling facilities, organisational policies and promote cycling within the workplace. This can include installing cycle parking, changing and clothes drying facilities, joining a cycle to work scheme, or arranging cycle training.

If you’d like to create a cycling culture in your workplace and gain access to tools and funding to improve cycling facilities and encourage employees to cycle for everyday journeys encourage your employer to apply for the Cycling Friendly Employer Award.