Government schemes exists that can save you around 50% of the RRP of a new bike. It aims to make cycling more attractive as a legitimate way to commute to work by taking advantage of some new tax incentives. Big Bear Bikes works with many of these schemes to ensure that we can offer as many different types of Cycle scheme incentive programs as possible. This can make it a little confusing but they work essentially in the same way.
It is a form of salary sacrifice which means in exchange for a lower gross salary you would receive the non-cash benefit of a new bike & accessories, with a reduction in the RRP of your chosen bike by paying less in Income Tax & National Insurance.
Employee’s gain many benefits from Cycle scheme.
Frequently Asked Questions
Who does the bike belong to?
It belongs to the company and is hired to the employee for the term of the Hire Agreement.
What happens at the end of the scheme?
There are several options open to the employer regarding transferring ownership and allowing ongoing use of the bike. Call us 01751 474220 for more information,
Does the employee ever own the bike?
At the end of the agreed hire period the employer has the opportunity to sell the employee their bike back to them at fair market value, this can be calculated by clicking this link
What happens if the employee leaves his job before he has finished paying for the bike and accessories?
The payment for the bike and accessories is formalised by a Hire Agreement regulated by the Consumer Credit Act. This is a non-cancellable legal agreement. If the employee leaves his employment through any reason during the sacrifice period, then the employer will require the employee to pay compensation. This generally is used to cover the employer’s costs which haven’t been offset due to the non-completion of the salary sacrifice arrangement. This compensation will be taken from your final month’s net pay and will not qualify for PAYE and NIC savings.
You have not answered my question, what now?
If you find there are things that are still not clear to you, please telephone 01751 474220 or alternatively email email@example.com and we will do our best to answer any questions you may have.