Cycle Scheme

WHAT IS CYCLESCHEME?

Cyclescheme allows you to pay for a new bike using a ‘salary sacrifice’ employee benefit. You choose a bike, hire it for an agreed length of time, and then snap it up for a fraction of its original value. All while making huge savings (at least 25%!) and spreading the cost.

There is no longer a £1000 limit, meaning that (depending upon your employer) you can choose a new MiRiDER One bike.

PLEASE CLICK HERE TO VISIT THE CYCLESCHEME WEBSITE FOR ALL THE RELEVANT DETAILS

HOW TO ORDER A BIKE USING THE CYCLESCHEME VOUCHER

    1. First you’ll need to find out if your employer is already signed up to the Cyclescheme. If they are you’ll need their ‘company code‘ (please speak to your HR department). If not, they can apply online here – LINK.
    2. Choose the bike and any accessories you would like to be included in the scheme.
    3. Once you have the ‘company code’, you can apply for an e-certificate on the Cyclescheme website – LINK.
    4. If successful you will be emailed an e-certificate with a redemption code on it.
    5. Next email your e-certificate along with the bike and accessories, your delivery address and contact number to hello@mirider.co.uk. Ensure the total value of the order matches that on the e-certificate.
    6. We will redeem the e-certificate and once payment has been received from Cyclescheme, your bike will be dispatched. This can take a couple of days to process and we will email you to confirm successful redemption and a subsequent dispatch date.

Green Commute Initiative

The cycle to work scheme with no £1,000 limit

WHAT IS GREEN COMMUTE INITIATIVE?

Green Commute Initiative is a Social Enterprise with a vision to get commuters out of cars and onto any kind of bike, with the dual purpose of improving both the individual’s health and wellbeing, as well as reducing the environmental impact of pollution and congestion from cars.  We do this through our cycle to work scheme.

ABOUT THE sCHEME

How does CGI work?

Your employer buys a voucher which entitles you to the hire of a bike of your choice directly from us. Because we’re authorised by the FCA there is no £1,000 limit.

The cost of the voucher is the same as the bike so for a £1,500 bike the voucher is £1,500.

You repay the cost of the voucher by sacrificing a part of your gross (before tax & NI) salary. This means you save the tax and NI that you would pay if you bought the bike from your net (after tax) pay. Your employer also saves 13.8% employer’s NI. So it’s worth them doing it.

At the end of the hire period we can’t give you the bike because you would incur a tax liability. So, we make you a free of charge loan of the bike for a further five years and nine months. After 6 years, under a separate agreement, we can transfer to ownership title to you for a £1 processing fee.  The £1 acts as a marker to protect you from any future claim that HMRC may make.

We manage all the end of scheme arrangements so there is nothing for your employer to do and best of all no end of scheme sting as there is on old fashioned Cycle to Work schemes.

Is there anything to pay at the end of the scheme?
GCI does not charge a ‘sting-in-the-tail’ exit fee, unlike other schemes which charge up to 7% of the full value of the bike.  GCI ensures you get the full benefit of the tax-break from HMRC by offering you a free of charge loan after the initial hire period.  After the loan period, under a separate agreement, we can transfer to ownership title to you for a £1 processing fee.  The £1 acts as a marker to protect you from any future claim that HMRC may make.
How does the Cycle to Work Scheme work?

Cycle to work schemes allows employers to offer their employees the use of a bike for commuting in exchange for a salary sacrifice.  The salary sacrifice enables the employees to use their gross pay to reimburse the employer for the cost of the bike.  The gross pay is before tax, so the employee saves the tax and national insurance which would have been due on the amount sacrificed (32%, 42% or 47%).  It also allows employees to spread the cost over monthly pay packets, making the acquisition more affordable.

Is this HMRC compliant?

Yes.  You can see the confirmation in the third paragraph on the Employment Income Manual page of their website.
“The exemption also covers the provision of a voucher for hiring bicycles and equipment.”

One of the big four accountancy firms said:
“Our review of the GCI documentation has confirmed that the scheme arrangements are
robust and comply with the relevant legislative exemption in respect of cycles and cyclist’s
safety equipment.”

Please ask us if you would like to see a copy of their report.

How long is the agreement for?

There are two separate agreements:

The salary sacrifice agreement is between the employer and employee and covers the repayment of the voucher cost.  This can be for any period longer than twelve months that both parties are happy with.  Common terms are 12, 18, 24 months but it could be for as long as 60 months.

The hire agreement is between the employee and GCI Ltd.  This is unaffected by the length of the salary sacrifice.

Why no £1000 limit?

Green Commute Initiative is authorised by the Financial Conduct Authority for consumer hire up to any value.  Since you’re hiring the bike from GCI, your employer doesn’t need FCA approval.   View our FCA registration

How to cycle to work in a suit?
E-bikes are the future of commuter travel.  The battery assistance kicks in when you need it meaning you don’t need to get hot and sweaty cycling up hills or going long distances.  This means you can cycle to work wearing your usual business attire without the need to change or shower when you arrive at your destination.
How much money will I save?

This all depends on which income tax-band you are in.  This coupled with your national insurance contributions will give you the percentage of what you’ll save from your gross salary.

Example
Basic Taxpayer Rate = 20%.
National Insurance contributions = 12%.
Total saving = 32%

Higher rate tax payers can save as much as 47%.
To find out how much you will save on your bike package, use our savings calculator.

With 3rd party finance, who is responsible for repayments?

Finance taken out with a third party is between the employer and the finance company and as such, the employer will repay the loan.  The employer recoups the money from reduced salary payments, minus the commission on the loan.  The cost of the loan is more than covered by the employer’s reduced National Insurance payments.  The employer still saves money.

Akira can time their payments so they are due after the salary payment date.

more....

Is there a maximum on how much I can spend?
The maximum limit is £10,000 but employers can set internal limits for employees which could be calculated as an actual amount or a multiple of a month’s gross salary.  Sound judgement should be made when considering if an employee can actually afford an expensive bike package.
How much money will my employer save?
Employers can typically save 13.8% of the total value of the salary sacrifice, due to the reductions in Employers’ National Insurance contributions.  The savings will reduce slightly if the employer has opted to use third party finance or if 30-day terms has been agreed.
Will I lose my tax-free benefit if I leave my employer before the agreement ends?

When an employee leaves before the end of the agreement, any outstanding amount on the loan must be repaid within 14 days of leaving the employment.  However, the final salary payment must not take them below the minimum wage.  If the outstanding amount owed is not fully covered by the final salary payment, the employee must pay it through their own means.  This will mean that they lose the tax free benefit on any amount not paid via their salary.

I'm the director of my own company , can I join the scheme?

If you pay PAYE as a Director you will qualify.  You may wish to consult your accountant for advice.

I'm self employed, can I join the scheme?

Sadly, you will not be able to take part because your tax arrangements are different. You may be able to claim business use for the bike though.

Will salary sacrifices affect my workplace pension?

Yes, reducing your gross salary will most likely reduce your pension contributions, which in turn affects your final pension pot.  However, your employer might have different pension arrangements in place.  Please consult your pension provider for more details.

Do I need to pay the bike shop a deposit?

The bike shop may wish to charge a deposit in order to secure the deal, however they should refund this back to you in the event your organisation decides to not take part in the scheme.  If you do proceed, the deposit will be refunded back to you when you collect your bike.  However, if the bike shop has had to place a special order for you, they may decide to withhold the deposit in the event the deal does not go through.  You should ensure both you and the shop are clear on this point.

Is my organisiation already signed up?

Your organisation does not need to be signed up for you to use Instant GCI.  Instant GCI works on an individual basis, so as long as your employer agrees to your request, you can go ahead.  If they have already allowed other individuals to take part in the scheme, it is likely that the scheme will be advertised internally on either staff noticeboards or the intranet.

For Corporate GCI, your organisation will have an GCI code which allows you to access the dedicated portal.  Your HR department or intranet will provide this.