| How do I order a bicycle under the scheme? |
First of all ensure that you meet the eligibility criteria for your company, this can be found on the order form.
Decide which cycle meets your needs from the packages available in the Options leaflet. Add any additional safety or equipment packages required, remembering you must not exceed the monthly gross salary
sacrifice and the total value of goods must not exceed £1000.
Complete the order form in the Options leaflet and return it to your local HR Department. You will then be
sent a hire agreement with an explanatory covering letter giving the next steps.
Once you have signed and returned the hire agreement your order will be confirmed with Wheelies Direct
and you will be contacted by them to arrange delivery of the Bicycle and check the size/colour
requirements. Delivery will normally be within four weeks of the closing date of the scheme. |
| Where can I view the equipment prior to making my choice? |
A range of specially selected bicycle and accessory packages is included in the Options leaflet that you
should have received with these questions and answers.
If you have not received the Options leaflet one can be obtained through your Cycle Solutions Scheme
co-ordinator or by contacting Wheelies Direct on 0845 279 9970 |
| Can I change the specifications of the packages on offer? |
Yes
Wheelies Direct offer special packages of bicycles and safety equipment. These packages have been
carefully selected to ensure that you receive great value for money. However, Wheelies Direct is able to
supply over 160 different cycle brands, from budget models to top of the range mountain bikes, racers and
commuting bikes.
Through Wheelies Direct you are able to select from the UK’s widest choice of bikes and safety equipment.
Wheelies Direct are able to provide expert advice which will ensure that the bike is suited to your specific
requirements and will provide safe and enjoyable riding.
|
| Can I change my mind once I have ordered under the scheme? |
| By completing the Hire Agreement and Schedule on your employer’s premises and sending
this in you are committing to a salary sacrifice for a period of 18 months which cannot be cancelled. |
| Does it matter what I use the bicycle for? |
The scheme has been launched by the Government to encourage people to use bicycles, especially to
and from work.
You can use it for anything you like but at least 50% of the bicycle’s use must be for work purposes.
This will include commuting i.e. all or part of the journey (for example to the station) from your home to your
workplace, or from one workplace to another. |
| How will this be monitored? |
| You are not required to keep any record of use but the organisation is required by Her Majesty’s Revenue &
Customs to make it clear that if you do not use the cycle in this way you may lose the benefit of the tax relief. |
| Can any member of my family use the bicycle away from home? |
| Yes. However, by signing the hire agreement, you will be solely responsible for the equipment supplied and
are responsible for insuring the equipment appropriately for its use. |
| Is there a limit to the value of the bicycle I can acquire through Cycle Solutions? |
| Yes. Under the terms of this scheme you are only entitled to equipment with a total value of £1,000. |
| Do I have to be a first time cycle owner to take advantage of the scheme? |
| No. Although the scheme has been introduced to encourage cycling among those who do not have their
own bicycle, any eligible employee can use the scheme. |
| Can I change the equipment and parts of the bicycle during the hire period? |
| You can add accessories such as lights and mudguards onto the bicycle if you wish. You are also able to
change equipment which has been worn or damaged through normal wear and tear to the cycle provided
it does not invalidate the manufacturer’s warranty. |
| Can I upgrade my bicycle package at a later date? |
You can add any new components or accessories subject to warranty agreements, throughout the
agreement period. These items would not be covered under the Wheelies Direct warranty, and must be
removed when you return the bicycle at the end of the agreement period.
A range of commonly purchased equipment is available on Wheelies Direct’s website at the following
address www.wheelies.co.uk. |
| How long is the agreement for? |
| 18 months. |
| When do I need to send my order in by? |
| Order forms need to be received by the date shown on the Cycle Solutions Order Form. |
| What if I lose or damage the equipment? |
| You must insure the equipment against theft, fire or accidental damage so that it can be replaced if it no
longer works. If it goes missing or is damaged you will have to keep paying for it. Please get in contact with
the company that provides your home contents insurance policy and they will be able to advise you on how
to cover your new equipment. |
| It sounds too good to be true! What’s the catch? |
As long as you understand how the scheme works, there isn’t one. The Government is concerned with the
health of the workforce in the UK and environmental factors linked with traffic pollution. With only one in three
adults in the UK owning a bicycle they are using the scheme to promote and encourage cycling amongst
the UK’s workforce. |
| How do I pay for it? |
| What is the salary sacrifice element of the Cycle Solutions scheme? |
The salary sacrifice happens when you give up the right to receive part of your salary due. This is neither a
deduction from salary nor is it a charge on salary; it is where you agree to accept a lower amount of salary,
in return for your employer providing you with the non-cash benefit of the bicycle and safety equipment. For
a benefit such as a hired bicycle, where there is a specific tax exemption, the employee can receive a tax
and NIC-free benefit instead of salary on which tax and class 1 NIC’s would have been fully payable. |
| Do I have to pay VAT as well? |
| No. All payments made by you under the salary sacrifice do not require payment of VAT. |
| If I take up the scheme will I have to go through any credit checks? |
| No. Provided you meet the eligibility criteria set by your employer then there are no other checks required. |
| As it is a benefit do I need to tell the taxman? |
| No. The scheme is set up using tax rules that exempt you having to pay tax on the benefit and therefore
you do not have to notify the Inland Revenue. |
| What is the impact on my pension or other benefits? |
The likelihood is that any effect of a reduction in your cash pay may well have a small effect in the following
areas:
• Any pension scheme being contributed to (in particular this may be important if you are nearing
retirement and have a final salary pension scheme)
• Entitlement to contribution based benefits like a State Pension
• Entitlement to earnings related benefits like Maternity Allowance
• Entitlement to work related payments like Statutory Sick Pay |
| If I have any questions about the impact of the scheme who should I contact? |
| Please speak to your organisation’s human resource or personal department |
What happens at the end of the
scheme, or if I leave? |
| What happens when I have finished the payments? |
You may be able to start a new scheme with a more up to date bicycle, if your employer wishes to
implement a new scheme.
• The bicycle and equipment can be returned or collected for a small collection fee.
• Your employer may have the opportunity to sell the bicycle and equipment at the end of the scheme at
fair market value. Currently fair market value is estimated to be a nominal sum not exceeding the amount
of one month’s salary sacrifice. |
| What if I leave the company during the Cycle Solutions scheme? |
You may be able to start a new scheme with a more up to date bicycle, if your employer wishes to
implement a new scheme.
• You will be required to pay any future outstanding gross salary sacrifice amounts as a lump sum from
your final net salary payment; such a payment cannot be taken from gross pay.
• If your final salary will not cover the entire final balance payment due, then you will need to pay your
employer the balance owed over and above your final salary payment within 14 days of you leaving.
• If you are made redundant, the rules of the scheme mean that you will be treated as a leaver and
therefore the above will also apply |
I will be retiring before the end of the 18 month agreement
period can I still participate? |
| Yes, however, when you leave you will have to settle the outstanding balance from your final net salary
payment, in the same way as a leaver described above |
| What if I can’t afford to carry on with the scheme? |
| The rules set by the Inland Revenue are that once you have agreed to a salary sacrifice for the period of
the hire of the bicycle, you do not have the option to revert back to the original salary until the hire period
is up. So, if you agreed to the hire for 18 months then you cannot go back to original salary for 18 months. |
| What happens if I go on unpaid leave? |
| If you take any form of unpaid leave such as extended maternity or sickness your employer may agree
to extend the hire period by the number of months you were not being paid. |
| What is the cost benefit to my employer? |
| Your employer will save secondary class 1 NIC contributions on that part of the employee’s gross salary
sacrifice. This saving will be used to offset the costs of implementing and running the scheme |
| Is this a one time offer? |
| The scheme will be reviewed by your employer and there may be further launches. However at this stage
there cannot be a guarantee that the scheme will run again in the future. |
| Delivery and Technical Support |
| What will the delivery arrangements be? |
| Once the order period has ended and your bicycle is ready you will receive a call to arrange a convenient
time to take delivery of the equipment. This should be within four weeks of the closing
date. Wheelies Direct will also check with you to ensure that the equipment you receive is the
correct size for you, frame style (if a ladies or gents option is available) and in the colour you want. |
| Can I have the equipment delivered to my workplace? |
| No, as the boxes are large and your employer cannot accept responsibility for the acceptance of the
equipment or missing packages delivery has to be to a home address. |
| What if I have a problem with using the bicycle and safety equipment? |
| Call the Wheelies Direct Helpdesk on the number advised and they will be able to assist with sorting out
the problem. If it is equipment you installed yourself, either the Helpdesk will assist or, if it is not common
equipment you may be asked to call the supplier of the equipment. |
What do I do if the bicycle is damaged or parts are missing when I
receive it? |
| Contact the Customer Care team who arranged delivery on 01792 583000. |
| What if something goes wrong with the bicycle during the hire period? |
All bicycles come with a full 18 month warranty.
In case of problems please call our technical support team on 01792 583000. |
