Most Popular FAQs

Cyclescheme is an independent company created to help employers and employees make the most of the Government's Green Transport Plan Initiative. They are independent and can supply the right package of bike, accessories and safety equipment for everyone.

The agreement to pay your loan is non-cancellable, so you will be obliged to pay the remaining amount in full, without any tax exemptions. If you opt to take ownership of the bike you may have to pay an increased fair market value.

Employees paying PAYE, who have a contract that outlasts the duration of the salary sacrifice period are eligible, provided they are over 18 years old, earn more than the National Minimum Wage after the loan repayment has been deducted, and have completed the employer's probationary period (if applicable).

With a salary sacrifice you pay back the loan on your bike, accessories and safety equipment from gross rather than net pay for the hire period (usually 12 months), allowing you to benefit from income tax and NI relief. See www.hmrc.gov.uk/specialist/salary_sacrifice.pdf for a more detailed explanation.

Typical savings are between 30% and 50%., but the actual amount you pay depends on your personal tax band, and the way your company runs the scheme. Higher rate taxpayers will save more, employees whose company cannot reclaim VAT (the NHS, for example) will save less. If the employer uses external finance (ie your employer borrows the money to buy the bikes from an outside agent) then savings are normally about 5% lower. Finally, the fair market value payment needs to be taken into account when calculating the total savings.

The Cyclescheme calculator will show you the massive savings to be made through Cyclescheme.

You can choose any bike, including electric and folding bikes, providing your chosen Cyclescheme partner can supply it. Some bike shops may add an administration fee to quotes for custom bikes, because the profit margins are lower than those available on standard, mass-produced models. If your employer wants to supply bikes costing over £1000 (retail price including VAT) then they will need a Consumer Credit Licence, and this costs £725, so many employers limit the package value to £1000.

The bike and goods remain the property of your employer until the hire period finishes, unless your employer uses finance; in this case the finance company will own the bikes during the hire period. At the end of the hire period you may be given the opportunity to buy the bike for a fair market value payment. If the bike gets stolen you will be liable for any outstanding monies without any tax exemptions, so it's very important to make sure the bike is insured. You can obtain safety equipment, including Home Office-approved 'Sold Secure' D-locks and cable locks, as part of the scheme.

Most employers opt to sell you the bike and accessories, and you will pay the fair market value; this is the amount that a buyer would pay to a seller to purchase the bike and equipment. Each bike is assessed separately, but in our experience the market shows values to be around 5% of the original voucher value plus VAT. The fair market value cannot be stated before or during the scheme as this could be considered a benefit in kind as hire-purchase does not warrant any tax-relief.

You can use the bike however you like; a bike purchased under Cyclescheme should be used for work journeys at least 50% of the time. You don't have to cycle to work for a specified number of days throughout the year and you don't have to record your trips or mileage. Please note that you are not able to claim business mileage allowance if using a Bicycle hired to you by your employer.

Your Household policies are usually the cheapest option but you must ensure that the insurer covers the bike when in storage away from your home, and that the bike's value doesn't exceed the upper claim limit. If the bike can't be covered on your home insurance, we recommend Cycleguard (02476 851 000) for insurance, and the free services provided by Fetch (0870 460 8167) who will expedite your claim and ensure that you are able to replace your bike using the bike shop of your choice.

Your employer needs to apply for an individual consumer credit licence which costs £335, last for 5 years and takes around six weeks to come through.

There is no credit check.

SBR Sports can order bikes and accessories for you but we may wish to either take a deposit or have any carriage fees covered to prevent us from being left with a special-order bike or paying extra carriage fees.

Any deposits taken on your credit card will be credited back when you redeem your voucher.

Remember......You can pay online using your voucher which is quicker, easier and saves you time.

Cyclescheme's frequently asked questions should cover most queries on the general running of the scheme.

If you would like to make an enquiry regarding the online payment process, or you would like to make an enquiry about the scheme, please use the form below.

General Information on Cyclescheme

Cyclescheme is the UK's number one provider of tax free bikes for work through independent bike shops. Cyclescheme prides itself in giving the best service available with the minimum of administration. The scheme is run in strict accordance to the government's green travel plan and conforms to the requirements of the HMRC, OFT and DfT. They also provide hire agreements for employees and a free secure website for voucher processing.

Cyclescheme is the UK's number one provider of tax free bikes for work through independent bike shops. They are pleased to help you with information on one of the best government tax breaks so far. Cyclescheme's frequently asked questions should cover most queries on the general running of the scheme.

The Cyclescheme calculator will show you the massive savings to be made through Cyclescheme.

If your still not sure how it works, and you would like to find out more about what SBR Sports and Cyclescheme can do for your company, please contact us using the form below.

If you want to get your employer on board, the best thing to do is liaise with them directly. The scheme has to be run through your employer, and you're more likely to be able to persuade them than we are, so it's in your interests to hassle them about it!