Cycle To Work Scheme
The Cycle to Work Scheme is a fantastic opportunity to get a new bicycle, electric bike and/or cycling equipment for up to 42% off. As well as the ability to save a significant amount of money, you also get to spread the cost over an agreed-upon term, which is usually 12 months, rather than having to pay for the bike in full when you order it.
For employers, it's quick and easy to setup a cycle to work scheme with Edinburgh Bicycle, and we also accept vouchers from a number of third party Cycle to Work facilitators. If your employer already has a scheme setup with one of these third party facilitators, contact us now to order your bike and/or cycling equipment and we will be happy to talk you through our range and how the individual scheme provider works.
Go Direct - Set up a cycle to work scheme directly with Edinburgh bike coop
There is no easier way to start a bike to work programme than by contacting the Edinburgh Bicycle Cooperative. Even if your company has a single employee, as long as you pay tax via PAYE, setting up a bike to work scheme with us is a quick and painless way to enjoy the benefits and savings of the Cycle to Work Scheme and is an excellent way to support independent bike shops like ourselves.
Introducing a Cycle to Work scheme enables you to offer a very attractive employee benefit for your workforce, and has the added bonus of encouraging more of your staff to cycle to work which will be positive for their mental health and wellbeing. We all recognise the benefits of regular exercise: healthy body = healthy mind. The great thing about riding a bike is that the employee gets their daily exercise fix on the way to work. Thoroughly oxygenated, cyclists will almost certainly turn up more alert and less stressed than their colleagues stuck in traffic jams or sardined in a delayed train. Furthermore, even in the most congested cities, the cyclist gets from A to B within a predictable time frame - to put it in a nutshell, pedalling makes you more punctual! The cycle to work scheme really is a win for all parties.
The scheme can save money for the employer as well. For every £1000 hired on the scheme, the employer saves £138 National Insurance contributions. These savings more than cover the small amount of extra work required to administer the Scheme. It's hard to think of a perk that your staff will appreciate so much, that will cost you so little.
Why choose edinburgh bike coop for cycle to work?
With our own Cycle to Work Scheme, you get eligibility for special offers as well as a fast turnaround. There is no spending limit; you can contact us to find out more at firstname.lastname@example.org. There are no hidden costs.
Established 1977, we are one of the biggest independent bicycle retailers in Northern Britain.
We serve Aberdeen, Edinburgh, Newcastle and Leeds, with some of the largest bike shops and ranges in each of these cities. Running large well-stocked shops enables us to offer a wide range of cycle equipment options for every rider from absolute beginner to enthusiast.
Our website showcases an inventory of more than 3,000 bicycle, accessory and clothing lines.
In our experience, the best way to encourage people to use Bike to Work is to supply the most appropriate bicycle in the correct size. (A £500 bike that fits is going to be safer and more pleasurable to ride than a £1,000 bicycle that's too big or too small).
Offering a world-class range of bicycles backed with expert advice is our best guarantee that every customer leaves the shop with the best bike for his or her requirements.
We are proud to be a workers' co-operative where every time-served employee has an equal share – more on this.
We will guide you through every stage of your Bike to Work Scheme's launch and implementation.
We will issue and administer all the agreements - all the employer needs to do is make the adjustments to the employee's salary.
We will provide all support required at absolutely no extra cost to your organisation.
We pride ourselves in being very easy to get hold of so you can rest assured that you will be able to contact us 7 days a week.
We have set up Cycle to Work Schemes in partnership with hundreds of organisations since 2004. Regardless of the number of employees – 3 or 3,000 - Edinburgh Bicycle Co-op can tailor a Cycle to Work Scheme to your needs.
Our in-store and online colleagues can also assist in matching the right bike and equipment to the specific needs of the customer by chatting through intended use, budget and personal preference (to name but a few). There will always be a perfect match whether this is a road bike, gravel bike, hybrid or electric bike. We are always happy to help find the right bike for cycling beginners (there are no silly questions) or for cyclists wanting to upgrade to more performance oriented bicycles.
We have years of experience complying with the requirements of HM Treasury. We can supply all the legal & admin documentation you will require. In other words, Edinburgh Bicycle Co-op is skilled at helping workplaces cut through the red tape involved in setting up a Bike to Work Scheme.
FLEXIBILITY & CHOICE
You choose your staff's repayment period and your staff get to choose from a massive range of bikes and equipment, guided by our experts. We stock hybrid, road, mountain, gravel, electric bikes and cargo bikes so there will definitely be something to suit almost everyone.
Edinburgh Bicycle Co-op can offer a complete marketing and support package to inform your staff of the benefits of the Bike to Work Scheme.
For the employee, we provide advice for choosing their bicycle and any accessories required. We will fit any accessories that are chosen along with a new bike, such as mudguards, so that the bike is ready to ride away when it comes to collection - we will not charge any extra fitting fee for accessories bought from us that are to go on a new bike.
When the employee comes to collect the bike, we take them through the bike and answer any questions they may have before they take the bike away. Aside from all of this this, we offer two free services at 6 weeks and 12 months to ensure the bike is running well and any teething issues are addressed and, going forward, we are always available to assist with any repairs or warranties to get you back on the road again as soon as possible.
200 BIKE MODELS TO CHOOSE FROM
Your employees will be able to select from up to 200 models of bikes from any Edinburgh Bicycle Co-op store. Whether they're looking for a dedicated commuter/leisure bike, or they would prefer a mountain bike, folding bike, an electric bike or a full-on competition road bike, we are confident that you won't find a better selection of appropriate bikes to cycle to work on.
YOUR STAFF CAN EVEN SELECT BIKES ON SPECIAL OFFER
Edinburgh Bicycle Co-op does not put any limitations on which adult bike qualify for the cycle to work scheme (beyond the monetary limit set by you, the employer). For instance, if the employee chooses a bike that's on special offer, they will still get the full discount and the tax savings on top. Whereas, special offers are not available with third party cycle to work schemes.
SIMPLE TO JOIN, SIMPLE TO OPERATE
Our sales staff have years of experience advising new and returning cyclists on the most appropriate bike for their commute. All our sales staff are trained to ensure every Bike to Work application is completed correctly. We can therefore guarantee that every order will be processed smoothly.
WE CAN SUPPLY THE BICYCLE VERY QUICKLY
Typically, the employee will be able to collect their new bike from Edinburgh Bicycle Co-op within 10 days of choosing it. (Compare with some cycle to work schemes where it's not unusual to be kept waiting for over a month). We will also help choose and then fit any accessories that go with the bike so the bike is ready to ride as soon as it leaves the store.
EDINBURGH BICYCLE IS A WORKERS’ CO-OPERATIVE
Every time-served employee is an equal owner of Edinburgh Bicycle Co-op - a fact that sets us apart from many independent bike shops. It's therefore in our DNA to treat every customer as an equal, with professionalism and respect. We trust that this co-operative culture helps make our shops more approachable – especially for new or returning cyclists.
You will always get a swift reply when you contact our bike to work team at email@example.com.
how does the bike to work scheme work?
Under the Cycle to Work scheme, the employer pays up front for the bike and/or new cycling equipment and then leases it to the employee through the Edinburgh Bicycle Coop. The employee doesn't pay a penny for it upfront but agrees to make salary sacrifice payments — a small deduction from their paycheque every month — for the duration of the hire period, which is usually 12 months. Because this deduction is made from the employee's gross salary, they pay less income tax, and this is where the savings come in.
For example, a £600 bike over a 12-month hire period would be a £50 deduction from each month's paycheque. As this is taken from your gross salary, and as you won't pay tax on it, this works out to a £34 deduction from your net salary. Over the course of the year, the employee saves £192, paying a total of £408 instead of £600 (assuming they are a basic rate tax payer; if on the higher tax band, they would save £252, paying £348 instead of £600 rrp).
The following tables give a rough idea of the savings you can expect, assuming a 12-month hire period. The exact savings will be determined by the specifics of your cycle to work program.
Savings for intermediate rate taxpayer in Scotland, assuming 21% tax on a salary up to £43,662 per annum*:
Net Cost of
Savings for higher rate taxpayer in Scotland, assuming 42% tax on a salary above £43,663 per annum*:
Net Cost of
*Please note that these figures are rough estimates and do not take into account any end of hire agreements. Employers should consult accountants, if appropriate, for exact figures.
how does the process work?
1. The employer signs an agreement to setup a Cycle to Work scheme with Edinburgh Bicycle Cooperative. This allows us to handle all the administration of the hire agreements, bicycles, and accessories, and allows employees to hire bikes with no limit on their value.
2. The employee picks their bicycle and/or cycling equipment. This can be done in-store, or by phone or website. No deposit is required to reserve your goods, and any sale items can be included.
3. Edinburgh Bicycle Cooperative creates the hire agreement, which is signed by the employer and the employee. We'll email the agreement to both parties to e-sign, making it as quick and easy as possible for everyone involved!
4. The employer pays Edinburgh Bicycle Cooperative for the bicycle and/or equipment. Once the hire agreement is signed, we'll provide the employer with all the information needed to pay for the bike.
5. The employee collects/receives delivery of the bicycle and/or equipment. Once payment has been received, we will inform the employee to collect the bike, or arrange delivery to them.
WHICH EMPLOYEES CAN USE THE CYCLE TO WORK SCHEME?
Employees whose employment contracts outlast the duration of the hire period.
Employees must be 18 years or over in England and Wales, or over 16 years old in Scotland.
Employees must pay tax via the PAYE system.
Employees must not drop below the minimum wage once the salary sacrifice is applied.
Employees who are not intending to depart from their employer within the next 12 months.
DOES THE BICYCLE HAVE TO BE USED FOR CYCLING TO WORK?
At least 50% of the bicycle's intended usage must be work-related. The pre-contract information provided with the hire agreement will clearly state this. The rest of the time, employees are at liberty to use the bikes as they please.
DOES THE EMPLOYER HAVE TO MONITOR USAGE OF THE BICYCLE?
No. By ensuring that the hire agreement and the terms & conditions clearly state that a minimum of 50% of the bike's use must be for qualifying journeys, the employer is doing all that is required to ensure compliance.
Is there a restriction to the bicycle an employee can choose?
Only that the bicycle must be capable of fulfilling the role of providing transport to and from work. For this reason, children's bicycles are not available to hire under the scheme.
CAN I CHOOSE MORE THAN ONE BIke? OR NO BICYCLE?
You can take out 2 bicycles under the scheme, as long as both bicycles are for yourself and that for both bicycles, a minimum of 50% of their use is for work-related journeys. Bear in mind that the combined price of the two bikes will be considered relative to any spending cap when calculating whether you are still above minimum wage. Alternatively, if you already have a suitable bicycle, you can use the scheme solely for bicycle equipment that may make your journeys easier.
WHAT CYCLE EQUIPMENT CAN I GET UNDER THE SCHEME?
You are allowed to get any accessories that are considered "safety equipment." While this does not include items such as food or books, it does include:
• Bells and horns
• Mirrors and mudguards to ensure riders visibility is not impaired
• Child Seats
• Cycle clips and dress guards
• Locks and chains for preventing theft and to ensure cycles can be safely secured
• Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs
- Replacement parts to specifically improve the bicycles suitability for commuting, such as puncture-proof tyres or a different saddle.
• Replacement parts to keep the bike roadworthy
Please note the above is not a comprehensive list of what safety equipment is available to choose. As always, you are welcome to contact us in store or online if you have any queries of what can be included in the cycle to work scheme.
CAN OUR STAFF TAKE ADVANTAGE OF EDINBURGH BICYCLE CO-OP’S SALES OR EXCITING OFFERS?
Yes. There are no restrictions or added fees to bikes and equipment featured in a sale or on offer purchased through Edinburgh Bicycle Coop's cycle to work scheme. In fact, it is a great way to purchase a bike and pay significantly lower than the RRP.
Can cycle to work be done via mail order?
Yes. Employees can view their bike and cycle equipment shop online through our website www.edinburghbicycle.com, then order by phone. We can arrange delivery of a bicycle to the employee's home or work address for £30. Please note that company credit cards cannot be used for remote payment. Payment must be completed either by BACS transfer, or by chip & PIN in-store.
HOW LONG IS THE REPAYMENT PERIOD?
The normal length of the repayment period is 12 months. Ultimately the employer makes this decision, though Edinburgh Bicycle would not recommend deviating from the standard 12 month hire period.
WHAT ARE THE SCHEME’S RULES?
The following rules apply so that the employee does not pay tax on this benefit:
The bicycle remains the property of Edinburgh Bicycle Coop for the full length of the repayment period.
The employee must keep the bicycle clean and in good working order.
The bicycle's primary use must be commuting to work.
Replacement bicycles are not available under the scheme. If the bicycle goes missing or is damaged, the employee will still have to pay the monthly amount for the remainder of the repayment period.
WHO OWNS THE BICYCLE?
Although the employee will have full use of the bicycle, and be responsible for it's care and upkeep, in order to obtain the tax advantage it is a requirement that ownership of the bicycle remains with Edinburgh Bicycle Coop.
WHAT HAPPENS IF THE BIKE OR EQUIPMENT IS DAMAGED, LOST OR STOLEN?
It is the hirer's responsibility to insure the bike against damage and theft. If the bike is damaged or stolen the hire agreement is not cancellable and the employee will still be required to pay for the bicycle and safety equipment hired. If damaged, they will also be required to pay for repairs.
WILL THE EMPLOYEE OWN THE BICYCLE AND EQUIPMENT AT THE END OF THE REPAYMENT PERIOD?
Not automatically. To be able to save on the Income tax and National Insurance contributions, the agreement must be a Hire Agreement not a Purchase Agreement.
Having said that, at the end of the hire period, Edinburgh Bicycle Coop has the option to continue hiring the bicycle to the employee at zero cost until such time that ownership of the bicycle can be transferred to the employee for a nominal fee. The course of action would be decided at the end of the hire period. To discuss the transfer of ownership please contact our bike to work team at firstname.lastname@example.org.
HOW MUCH CAN AN EMPLOYEE SPEND?
While historically cycle to work schemes were capped at £1000, this is no longer the case. There is currently no limit on what employees can spend, providing the salary sacrifice monthly payments do not take them below minimum wage. Employers can choose to set their own spending limit for employees if they wish.
Will Cycle to work affect EMPLOYER’S CASH FLOW?
Running a scheme where the employer pays for the bicycles upfront, then gets the money back via employee salary sacrifices, can have cash flow implications for the organisation. To discuss the implications of this, please contact our bike to work team at email@example.com..
WHAT HAPPENS IF THE EMPLOYEE LEAVES THE EMPLOYER BEFORE THEY HAVE REPAID THE FULL AMOUNT?
The employee will have to repay the outstanding amount that is left to pay from their final payslip. However, this amount will not be tax-free as it will be taken from their net salary. If the employee's final salary does not cover the outstanding amount, they will be sent an invoice for the remainder of the balance.
Ownership of the bicycle remains with the Edinburgh Bicycle Coop, who may then seek to dispose of it for a fair market value. HMRC issue guidelines on calculating the fair market value of a bicycle. Please follow this link for more details.
It is highly advised that employees do not enter into a hire agreement if they are intending on leaving their employer within the hire period.
As with all matters to do with our Bike to Work Scheme, to discuss the various options for dealing with the transfer of ownership please contact our bike to work team at firstname.lastname@example.org.
WHAT HAPPENS IF THE BICYCLE HAS A WARRANTY PROBLEM DURING THE HIRE PERIOD?
When the employee chooses a bicycle and equipment, Edinburgh Bicycle Cooperative will advise them of the warranty period, as they vary with each bicycle. If the employee experiences problems within the duration of the warranty period, Edinburgh Bicycle Cooperative will liaise with the supplier on the employee's behalf. The employer will not need to be involved in the warranty process.
HOW MUCH WILL THE SCHEME COST TO IMPLEMENT?
Edinburgh Bicycle Co-op will not charge your organisation for implementing the scheme. The cost of implementing a Bike to Work Scheme is usually negligible. Some administration duties are detailed below, but there are also significant NI savings - for every £500 an employee hires on the scheme, the employer saves £69 NI contributions.
WHAT IS THE ADMINISTRATION PROCESS INVOLVED IN SETTING UP THE SCHEME?
Edinburgh Bicycle Co-op handles the majority of the administration. Our standard scheme requires BACS payment for each bicycle before it can be collected. For larger employers, we can offer a scheme where bicycles can be collected straight away, and you will subsequently be invoiced.
The level of administration required to set up the scheme is outlined here:
Sign & have a witness sign an agreement whereby you arrange for Edinburgh Bicycle Cooperative to hire bicycles and/or cycle equipment to your employees on the employer's behalf.
Checking the eligibility of applying employees and signing each hire agreement. Edinburgh Bicycle Co-op produces & retains the required paperwork free of charge to the employer, and makes sure it is signed by the employee.
Making BACS payment to Edinburgh Bicycle Co-op following the instructions provided, or paying invoices from Edinburgh Bicycle Co-op within agreed terms, depending on your scheme
Implementing the salary sacrifice process for each employee that joins the scheme.
WILL WORK RELATED PAY BENEFITS BE AFFECTED?
Yes. There may be an impact on an employee's entitlement to benefit payments such as Statutory Maternity or Paternity Pay, Statutory Sick Pay and Working Tax Credit, as they will be calculated on the employees reduced pay. There may also be an impact on the employee's state pension.
AS IT’S A BENEFIT, DOES THE EMPLOYEE NEED TO TELL THE INLAND REVENUE?
No. The scheme is set up so that under the current tax rules the employee does not have to pay tax on the benefit and therefore the employee does not have to notify the Inland Revenue.
AS IT’S A BENEFIT, DOES THE EMPLOYER NEED TO TELL THE INLAND REVENUE?
The employer does not need to inform the Inland Revenue prior to the start of the scheme. However, it is advised that the employer submits an example of an employee's payslip prior to the scheme starting and an example of an employee's payslip once the salary sacrifice has been started to ensure the reductions have been implemented correctly.
CAN A SOLE TRADER TAKE ADVANTAGE OF THE BIKE TO WORK SCHEME?
If you use the PAYE scheme, you can buy the bike as an employer and lease it back to yourself as an employee, thus giving yourself the opportunity to make attractive savings. We advise seeking financial advice from your accountant regarding whether the scheme is suitable for you.
If, like many sole traders, you pay yourself an occasional lump sum rather than a regular salary, you will not be able to commit to a monthly salary sacrifice, so you won't be eligible to join the Scheme.
You can still make savings however, if you intend to use a bicycle for work-related journeys. You would purchase the bike from Edinburgh Bicycle in the normal way (with a company credit card, cash or by making a BACS payment) then claim back capital allowances and write the purchase off against tax. If you are VAT registered, you may also be able to reclaim the VAT. To do either of these you will require an invoice from Edinburgh Bicycle addressed to your company, which we can supply.
This facility is explained in section 5.3 of the Department for Transport Cycle to Work Scheme implementation guidance booklet. Edinburgh Bicycle Co-op recommends that you discuss this option with your accountant before purchasing the bike.
WHERE CAN I OBTAIN MORE DETAILED INFORMATION ABOUT THE SCHEME?
You can find out more about Bike to Work by downloading the Department for Transport Cycle to Work Scheme implementation guidance booklet. And of course you can contact our bike to work team at email@example.com.
Other schemes that we work with:
- Bike2Work Scheme
- Cycle Solutions
- Enjoy Benefits Ltd
- Green Commute Initiative
- Halfords (Cycle2Work)
How do other schemes work?
As you can see from the above list, we accept a number of third party cycle to work vouchers. These work differently from the Edinburgh Bicycle Coop bike to work scheme in a number of different ways. *Please Note: there are slight differences between how these scheme provider s operate but we will just put the common similarities here.
Once you have chosen your bicycle and equipment, you leave a 10% holding deposit of the value of the bike (e.g. if the bike you have chosen is £600, you only need to leave £60 to secure this). Don't worry though, once you bring in your cycle to work voucher to pay your transaction, this will be refunded.
Once the above is complete, we give you an itemised pro-forma for you to enter into the cycle to work scheme facilitator's website to start your application. Sometimes, you can log in to this from a company's intranet site, other schemes require that you contact your hr department or finance department to obtain an employer code to enter.
The facilitator will then contact your employer to and if all of the conditions of your particular cycle to work scheme are met, the third party facilitator will issue you with a voucher with a unique collection number to come in to store and pay for your bike.
On collection, the voucher is presented at the store, the new bike is paid off and your deposit is refunded.
We will take you through the new bike and answer any questions you may have before you ride off. This final step is particularly important with electric bikes as there is a lot of extra information to go through as well as battery care.
One final point to note is that any discounted bicycles are subject to a 10% additional fee. This is in order to mitigate the commission charged to us by third party cycle to work facilitators. In these scenarios, you will likely still get the bicycle for lower than the recommended retail price, just not at the full discount.
The only exception to the above is for Green Commute Initiative where we only charge a 5% additional fee as they charge us less commission.
**As mentioned previously, this is generally the way each third party scheme provider works but please get in touch for specific information for the various facilitators of the bike to work scheme.