CycleScheme & Green Commute Initiative
"The Cycle to Work Initiative saves employees 32 - 42 per cent of the total cost of a bicycle and accessories. The company buys the bicycle for you and then leases it back to you, usually for 18 months. At the end of the lease period you buy the bicycle for about the cost of one month's lease. The employee saves money by not paying any VAT and as the repayments are taken out of the gross monthly salary, a further 22% in income tax and 11% NI contributions are saved."
The Observer newspaper
New: Green Commute Initiative Cycle to Work Scheme with no maximum price
Another great option is the Green Commute Initiative which is authorised by the FCA and can cover 100% of the cost of the bike rather than a maximum of £1000.
1. Your employer can deal with 50cycles directly and administer the scheme themselves. More and more employers run this salary sacrifice scheme in-house. You choose the bike you want and we send an invoice to your employer, who does the rest.
2. Alternatively, you can go through a company called Cyclescheme. Ask your employer if they're using the scheme - if they are, you can request a voucher to use as payment.
3. There is also another way to spread the cost of your electric bike, through our interest-free finance payment packages.
Here's an example of how it works for our popular Agattu
Cost of bicycle £1895.00 inc. VAT RRP
Maximum amount covered by scheme is £1000
You pay the difference, £895 to cover batteries, delivery
If you are on a higher tax band clearly the savings could be greater . The initiative will not affect your pension.
Cycle Scheme have a handy calculator here - savings can be up to 42% for a higher rate tax payer.
If you're interested and think you will be eligible (most employees are), please contact us