Do you own the bike at the end of Cycle to Work scheme?
The cycle to work benefit is a tax-efficient hire benefit. As such, you do not own the bike in the first instance (albeit it is in your care and you can use it as if it were your own).
What happens at the end of the Cyclescheme?
At the end of this period, Cyclescheme will refund the deposit if the employee does not wish to keep the package. No further action or payment is required if they wish to keep the package.
Is Cycle to Work scheme worth it?
The Cycle to Work scheme also allows you to buy accessories alongside the bike and this is definitely something you should take advantage of. In fact, we reckon it is worth using the scheme to buy two bike locks, a good set of lights, a helmet and some high-quality bibshorts.
How many times can you use Cycle to Work scheme?
There is no limit on how many times you use the scheme during your employment, but as you can only have one application per 12 month period, use it wisely!
How much do you have to pay at the end of cycle to work scheme?
At the end of the hire period, Bike to Work Ltd will contact employees to discuss the options available. The most attractive option for employees will be to pay a small, refundable deposit (3% or 7% of the equipment value*) and continue to use the bicycle for an extended period of up to 36 months.
Does the cycle to work scheme cost the employer anything?
Does the scheme cost anything for an Employer to implement? The scheme is free of charge to set up and costs nothing to run. The Employer makes the initial purchase and then leases the bike/equipment to the Employee via a salary sacrifice, until the full amount is recovered.
What happens if I don’t use my cycle to work voucher?
If they don’t process it, the bike scheme don’t release the cash. Ok, your employer is taking payments so, clearly, something has been triggered. Those payments, generally, will be taken from you in order that they can pay the cyclescheme provider for the upfront cost they’ve incurred.
How long does it take to get Cycle to Work voucher?
The cycle to work scheme usually takes 3-14 days from application to redemption. The length of time it takes to go from doing your application to getting your bike and/or accessories can vary; many employees can collect their cycle to work packages directly after being approved.
Can you pay off cycle scheme early?
If an employee leaves the scheme early, the bike or equipment will remain the property of the employer. … As such, they will no longer be able to take advantage of the savings made by paying for the bike or equipment from their gross salary before tax.
Can you use the cycle to work scheme twice?
If you have already had a bike and/or accessories package through the scheme, you can join again as long as: Your original Hire Period has been completed (usually 12 months) You have no outstanding ownership obligations (you’ve picked and paid for an ownership option)
How much are you allowed to salary sacrifice?
Salary sacrificed super contributions are paid on top of your employer’s compulsory super contributions, which is currently 9.5% of your salary. There’s no limit on how much you can salary sacrifice into super. However, it’s important to consider your concessional contributions cap. This is currently $25,000.
How does NHS cycle scheme work?
The Cycle to Work Scheme is a salary sacrifice scheme, which means that instead of making a direct saving on the purchase you make, the saving will be made from the money being taken from your gross wage (pre-tax and national insurance).