At Larkfield cycles we are all about getting people on to bikes. The government is offering a tax free way for you to purchase a bike and safety equipment. We offer the scheme from two providers that your employer could sign up to. www.cyclescheme.co.uk and www.bike2workscheme.co.uk, both work in a similar way as described below.
Cyclescheme is the UK's No.1 provider of tax-free bikes under the Government's Cycle to Work initiative.
Once your employer is partnered with Cyclescheme, You need to visit us in Store to choose the bike and safety equipment you want, normally up to £1000.00.
You then apply for a Cyclescheme Certificate online using a unique link to Cyclescheme’s secure Extranet facility The unique link is provided to employers and distributed to all employees.
If the employer approves their application they will countersign the Hire Agreement and pay Cyclescheme for the full retail price of the bike and equipment.
Cyclescheme will then post out a paper Certificate, usually to your home address.
The Certificate is then redeemed in store and exchanged for the bike package. Salary sacrifice then commences over the hire period (usually 12 months). The salary sacrifice is made prior to Income Tax and National Insurance contributions and, as a result, employees pay less of both. Most employers can pass on a VAT saving too.
At the end of the hire period the owner of the equipment may choose to offer you ownership of the bike for a market value payment, or pay a small deposit allowing you to remain in possession of the bike and continue to use it. The bike must be for the employee.
Typical savings for employees are between 42% and 52%, but the actual amount depends on the employee’s personal tax band and the way the employer runs their scheme. Higher rate taxpayers will save more, employees whose company cannot reclaim VAT (the NHS, for example) will save less.
Employers can typically save 13.8% of the total value of salary sacrifice, due to reductions in Employers' National Insurance Contributions due.
Please note that the above procedure applies to the vast majority of schemes, but there are some variations to the above.
If you have any questions regarding getting a bike on one of the schemes, please feel free to contact one of the members of staff in the shop or call 01732 847 438.