Cycle to Work schemes have been introduced by the Government to promote a healthier lifestyle and help reduce environmental pollution. In addition to this the schemes can provide financial benefits to the employer and employee too through tax savings.

Why are there different schemes?

There is only one Government Cycle to Work scheme but there are a number of scheme operators, of which Cyclescheme is the UK's largest and most common.

The end result for Employers and Employees is the same but the way each scheme operates may differ from operator to operator.

The Cult Racing Cycle2Work Scheme allows an employer to operate their own scheme by supplying the documents necessary in order to provide bikes and safety equipment. Buy administering our own scheme we can also keep the commissions and fees scheme operators take from us and pass those on to the Employer aswell as offering additional benefits.

Who can take advantage of the Cult Racing Cycle2Work scheme?

The scheme is open to all employers.

Employees must be:

1. Over 18 years old;
2. Earning no less than the National Minimum Wage;
3. Their contracts of employment cannot be shorter than the hire period;

The scheme must be made available to all employees. It cannot be restricted to certain employees such as senior management.

Why purchase a Cycle2Work Bike through Cult Racing Cycles?

Benefits to employers and employees of using Cult Racing Cycles for your tax free bikes:

• Choice: We have a wide range of bikes available for customers to demo
• Advice/Fitting: We can advise extensively on the type of bike best suited to your requirements  and advise on size and fit that your bike should be.
• Service: It doesn't stop when you walk out of the door and ride away, all of our bikes come with a FREE first service and our workshop rates are competitive
• No Hidden Costs: We don't make a charge to administer our scheme.

An example of how savings are attained

The table below contains 2 examples, one based on higher rate tax payer with NIC (National Insurance Contributions) above the upper limit and one on a basic tax rate paying between the lower and upper NIC earnings limit.

** Savings are illustrative and are based on the employees PAYE and National Insurance rates in the examples. The savings are reduced if the employer sells the bike to the employee at the end of the hire period.

*** It has been assumed that the employer is VAT standard rated and will pass the VAT saving onto the employee.

The Cult Racing Cycles Cycle2Work Scheme Process

Employer:

• Contact Cult Racing Cycles for any assistance and sample forms and advise us of the company Cycle2Work contact for the scheme.
• Employee provides employer with written or emailed quote from Cult Racing Cycles for approval.
• Invoice raised by Cult Racing Cycles.
• Once invoice payment has cleared, the bike(s) will be available for collection or shipping to the employee.
• Employer sets up necessary paperwork and salary sacrifice arrangement.

Employee:

• Employee selects bike and obtains written/emailed quote from Cult Racing Cycles.
• Employer approves quote and pays invoice raised by Cult Racing Cycles.
• Once invoice payment has cleared, Employee advised bike and safety equipment are ready for collection or due to be shipped.

Need more information?

Contact Paul Prince on 01564 701860. He has all of the required documentation on file should you wish to administer your own scheme.

Documents

FAQs
Introductory Letter
Order Form and Salary Sacrifice Calculation Sheet
Pre-Contract Information
Hire Agreement