Various cycle schemes have been running in the UK since 1999. Amazingly not all businesses offer it to their employees and those that do often don’t promote it. The employer is missing out on the business benefits of the cycle scheme and the employees are missing out on the savings.
Benefits to Employers
This is a huge missed opportunity as its a fantastic perk for employees that doesn’t cost the employer anything. In fact the employer saves money as they generate a NIC’s saving of up to 13.8%. The more employees who take up the offer the more the company saves.
The employers also benefit by having a happier and healthier workforce and might see less cars in the company car park.
Benefits to Employees
The employees save between 25-39% of the bikes value and get to pay off the bikes over a minimum of 12 months. A £1000 bike will cost a lower rate tax paying employee £56.67 / month. This is taken directly from salary. Before tax which results in the saving as the actual cost should have been £83.33.
Most employees see this as a great perk. As they are able to purchase something they might find hard to justify in a lump sum for a discounted price.
Historically the Cycle scheme had a £1000 price limit which made it less attractive to employees as many wanted the option to get a better bike. However recently the rules changed and the £1000 cap has been removed and now its there is no limit. The company is likely to set a limit however with one major employer in Derby offering a generous £2500 to its employees.
This increase really opens the doors to get a much better bike. Which also means a quality crank driven electric bike is now a possibility.
How to set up a cycle scheme
The cycle scheme is quite easy to setup and there are quite a few different companies offering cycle scheme processing.
We recommend the Green Cycle Commute initiative as its a very simple system to implement.
Other scheme providers include: Bike2work scheme, Cyclescheme.co.uk, NHS SME HCI Scheme, Salary exchange, Cycle Plus, On Yer Bike, Salary extra’s, Halfords Bike to Work, Cycle Solutions. All these scheme work in the same way and are accepted at Cyclo Monster.
How does an employee apply for a Cycle Scheme
Applying for a cycle scheme is very simple. Visit Cyclo Monster . Choose a bike and any accessories required up to your chosen value. If the bike price is over the cycle scheme value its usually possible to pay the difference.
The shop will then give you a quotation. Which can be submitted to your company according to their procedure. Often this will be to the HR department, manager or via electronic submission.
The payrole department will then make the salary sacrifice deductions and pay the invoice to the scheme provider. Usually a voucher is issued at this point which is given to the shop to exchange for the equipment.
How to tell your staff about the cycle scheme
Letting you staff know about the scheme and the business benefits of the cycle scheme is going to take up internal time and resources. Cyclo Monster can help out with this. We offer a service where we can visit your company free of charge and advise your employees on the benefits of the scheme. We can also provide promotional materials. Including posters and email flyers to put on the notice board or send out via email.
We would visit at a convenient time and only need a small amount of space. A meeting room or area near the canteen is usually ideal. These events are very enjoyable as its great to visit and support other local businesses and help get people out on their bikes.
If you would like to find out more information or go on the waiting list for a visit. Please get in touch so we can arrange to come and see you.