July 15, 2015

Cycle Scheme

Cycle Scheme with Finsbury Cycles – how can we help you?

Finsbury Cycles is a member of the Government Cyclescheme programme, which offers employees a tax free incentive to purchase a bicycle and accessories through their employer. So how can we help you?

Who are Cyclescheme?

Cyclescheme is the UK’s number one administrator for the Government’s Green Transport Plan Initiative. Cyclescheme offers the most admin-friendly scheme for employers and the greatest choice of bikes and equipment for employees as Cyclescheme is partnered with around 1,600 independent bike shops and we are one of them!

Who can participate in the scheme?

There is no minimum or maximum company size necessary to sign up to the scheme.

Eligible employees must: be paying PAYE, earn more than the National Minimum Wage after salary sacrifice, and have a contract that does not end during the hire period.

Employees who earn close to the National Minimum Wage following salary sacrifice may wish to discuss with their employer the option of loan or pool bikes. There is no credit check for employees wishing to participate.

Employer and Employee Benefits?

Salary sacrifice occurs when an employee agrees to give up part of their salary for an agreed period (in the case of the Cycle to Work scheme this is usually 12 months) in exchange for some kind of non-cash benefit, such as the loan of a bicycle and safety equipment. As salary sacrifice is taken from the gross salary (before tax) rather than net pay it means the employee pays less income tax and National Insurance.

Employers that can reclaim VAT usually pass this saving on to their employees, which increases savings further.

Employers also save on Secondary Class NICs (usually around 13.8%) as the amount they’re paying in wages is also lower.

How to join?

If you are already part of the Cyclescheme, all we ask is that you include us as one of the recommended bicycle shops.

If you are not part of the cycle scheme, then we can help you set one up.

Please contact us on 0207 263 0007 so we can set the scheme up for you as soon as possible.