This is a salary sacrifice scheme which provides an Income tax and National Insurance efficient way to pay towards the hire of a bicycle and associated safety equipment for 12 months. You can choose a bike and equipment from Cyclescheme up to a maximum value of £2500.
You sacrifice part of your annual salary to cover the hire of a bicycle and associated safety equipment for 12 months. For the initial 12 month period the bicycle will be hired from the University. The monthly payments towards the hire of the bicycle will be taken directly from your monthly salary and will cover the cost of the certificate value.
At the end of the 12 months, you have three options
- Return the bicycle to the scheme provider, Cyclescheme
- Continue to use the bicycle and hire from Cyclescheme by signing an, “Extended Use Agreement,” paying a small deposit of either 3% or 7% of the certificate value. There are no further monthly deductions.
- Take ownership of the bicycle paying Cyclescheme either 18% or 25% of the certificate value
You can participate in this benefit provided your earnings after deduction of the hire amount does not reduce your salary below the National Living Wage.
You have at least 12 months remaining on your employment contract.
If you leave employment before the end of the initial 12 month hire agreement the outstanding balance would be repayable immediately and, if possible would be deducted from your last net salary payment, meaning you would not have benefited from Income tax and National Insurance savings on any outstanding balance.
If you leave employment during the 'Extended Use Agreement' period, as your contract is directly with Cyclescheme the contract and bicycle will transfer with you.
You are responsible for insuring the bike during the hire period. If the bike is stolen during the hire period, you will continue to pay your monthly instalments. These monthly payments will be from your net pay and not gross, therefore no savings will be made. It is, therefore, important that you make insurance arrangements. See Cyclescheme advice on insurance for your bike or check with your home contents insurance provider. If the bike is stolen or damaged, you must inform the payroll immediately.