About the Scheme

• Introduction
• How does it work?
• What can I buy?
• FAQs

Introduction

The Cycle To Work Scheme was set up by the Government in 1999 to encourage people to use bicycles as a means of transport to and from work.

How does it work?

As an employee of a company participating in the Scheme, you may purchase a bike and accessories through your employer, free of tax and National Insurance. Bikedock will deduct a further 10% savings* as a reward for your participation in the Scheme.

You can start enjoying your new bike and associated gear straight away. In order to pay back the amount owed to your employer, a 'salary sacrifice' is deducted from your pay packet each month over 12 to 18 months. At the end of the period the employer may offer employees the option to purchase the bicycle, at fair market value.

More about your savings and payments

What can I buy?

The products available through the Scheme are not defined clearly by the Government guidelines. Everyone's circumstances are different and the employer has the right to decide what is allowed under the Scheme as it is interpreted by them.

Most companies adopting the Scheme take a common-sense approach to defining eligible equipment. For example, Belfast City Council's eligibility guidelines (devised by Alistair Curran, Sustainable Development Manager) state that cycle carriers may be purchased through the Scheme by Council employees provided they are used substantially in connection with qualifying journeys (i.e. to and from work).

Your own employer will provide specific guidelines for your Cycle To Work Scheme through the appropriate company channels - emails, bulletin board posts or leaflets, for example.

Remember - in addition to your bike, you must also make allowances in your budget for vital safety equipment such as helmets, lights and locks. Please ensure you take all of your requirements into account when deciding how much you wish to spend!

Your employer can assist you with any queries as to what is allowed under the Scheme.

Get started now!

FAQs

• What does 'salary sacrifice' mean? - Salary sacrifice is a reduction in pay for a pre-determined period of time, in return for a non-cash benefit provided by the employer - in this case a bicycle and cycling equipment. The reduction is made from the gross salary, which allows the employee to save on tax and National Insurance contributions.
• Who is entitled to benefit from the Scheme? - The Scheme is open to all employees aged 18 or over who pay tax via the PAYE system. Their pay must not drop below the minimum wage once the loan repayment has been deducted.
• Who owns the bike? - The employer owns the bicycle and cycling equipment until the end of the hire period. At the end of the period the employer may offer employees the option to purchase the bicycle, at fair market value (usually around 3.5% of the hire agreement amount).
• Who is responsible if the bike is lost or stolen? - The employee is responsible for the bicycle for the duration of the loan and is therefore advised to insure the bicycle.
• What if an employee leaves early or is made redundant? - The employee will have to pay the outstanding amount.
• Can any bicycle be bought through the scheme? - Yes, if the value of the bicycle and cycling equipment does not exceed £1000 after discounts and is for employee use. If the value of bicycle and cycling equipment exceeds £1000 after discounts, then the employee can pay the excess.
• Can employees purchase more than one bike? - Yes, if they need more than one to travel to work: they could for example buy one for the journey from their home to a train station, then another one for the journey from a train station to their place of work.