How do I order a bicycle under the scheme?
Decide which cycle meets your needs from the packages available in the Options leaflet. If none of these take your fancy then you can choose from 100's of alternative models available in our online shop.
Add any additional safety or cycle equipment packages required, remembering you must not exceed the monthly gross salary sacrifice and the total value of goods must not exceed £1,000.
You can order your bike and cycle equipment on-line, call our help line on 0330 100 2480, or send the order form attached to your options brochure to:
Cycle Solutions (Cycle to Work) Ltd
Unit 6 Europa Way,
Swansea West Industrial Park
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 the Cycle Solutions team and you will be contacted by them to arrange delivery of the bicycle and check your 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?
We are able to offer the UK's widest range of bicycles and cycling accessories. Over 140 different cycle brands are currently available through Cycle Solutions.
A range of specially selected bicycle and cycling accessory packages is included in the Options leaflet that is available from your employer. The Options leaflet is intended to make the selection process easier for you. We try to list some of the bikes and kit which will provide you with best value for money, but you are free to select from the massive range included on our website.
If you have not received the Options leaflet, one can usually be obtained from your employer or by contacting Cycle Solutions on 0330 100 2480. If you would like us to send you a copy of the brochure, please email us.
We will also visit key sites within your organisation to set up our 'Virtual Shop'. We will bring a range of bikes, accessories, and clothing along to these roadshows so you can browse at your leisure. Our expert road show staff will also be on hand to answer any questions.
With such a wide selection of bikes available we are sure that we will be able to assist you in choosing the bike and equipment which perfectly match your needs.
Can I change the specifications of the packages on offer?
Cycle Solutions (Cycle to Work) Ltd offer special packages of bicycles and cycle safety equipment. These packages have been carefully selected to ensure that you receive great value for money. However, Cycle Solutions (Cycle to Work) Ltd is able to supply over 140 different cycle brands, from budget models to top of the range mountain bikes, racers and commuting bikes.
Through the Cycle Solutions scheme you are able to select from the UK’s widest choice of bikes and safety equipment.
Cycle Solutions (Cycle to Work) Ltd 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 12 or 18 months (which will be stipulated within the Hire Agreement) 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 Cycle Solutions (Cycle to Work) Ltd 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 in our online shop. As a Cycle Solutions customer you are entitled to a discount on any equipment you buy after signing up to the scheme. Call Cycle Solutions on 0330 100 2480 for details.
How long is the agreement for?
The length of the scheme will depend on the parameters set by your employer. The rental period will typically be 12 or 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. If you would like to confirm the scheme dates applicable to you please call the Cycle Solutions team on 0330 100 2480.
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?
An update from HMRC published on 29th July 2011 clarifies that from 1st January 2012 VAT will be applicable to salary sacrifice arrangements.
If you are already enrolled on the cycle to work scheme and have salary sacrifice arrangements that extend beyond 1st January 2012 you may therefore be required to pay VAT.
Call us on 0330 100 2480 for details.
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 personnel department
What happens at the end of the scheme, or if I leave?
What happens when I have finished the payments?
You will have an opportunity when you complete your online Hire Agreement to agree to continue to use the equipment for a further 5-years beyond the completion of your salary sacrifice hire period. This extended usage agreement (which will be directly between you and Cycle Solutions) costs absolutely nothing. So you will benefit in full from the savings you make during the salary sacrifice period. If you take ownership of your bicycle and/or equipment at the end of the extended rental period, the fair market value of the bicycle will be negligible so there will be nothing extra to pay.
Alternatively, if you prefer you may also have the opportunity at the end of your salary sacrifice period to choose one of the following options:
- The bicycle and equipment can be returned to Cycle Solutions.
- You may be able to purchase the bicycle and equipment for a one-off fair market value payment.
If you would like to discuss these options, and any others that may be available to you, please call Cycle Solutions on 0330 100 2480
What if I leave the company during the Cycle Solutions 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 hire 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 12 or 18 months then you cannot go back to original salary during that period.
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.
End Of Scheme - Extended Hire Agreement
How is the market value for a bike obtained through a Cycle to Work Scheme calculated?
HMRC has published the following ‘Valuation Table’ to be used to calculate the market value of bicycles and safety equipment at the end of the ‘salary sacrifice’ rental period:
|Age of cycle
||Acceptable disposal value percentage
||Orignal price less than £500
||Orignal price £500+
|6 years & over
Will I be offered ownership at the end of the hire period?
In order to preserve the tax benefits of the scheme, there can be no guarantee or obligation to transfer ownership to you (the employee) immediately after the hire period has ended. However, employers often choose to offer this option, either directly or via Cycle Solutions.
Can employees still make a saving?
At the end of the hire period, Cycle Solutions will contact you to discuss the options available.
The most attractive option for most employees is a zero-cost extended hire period where they can continue to use the bicycle for an extended period of up to 60 months.
At the end of this period, no further action or payment is required, and the bike ownership is automatically transferred.
If I extend the hire period, what are the monthly payments?
The monthly payments are zero. There are no further salary sacrifice payments or hire charges due during the extended use period.
Will I have to pay more when the extended hire period ends?
No. You will have the option to return the bicycle and receive a refund of your deposit. If you are offered ownership by Cycle Solutions at this point, no further action or payment is required if you wish to keep the bicycle (we will simply retain the deposit as full and final payment).
Can an employee participate in a new cycle to work scheme during the extended hire agreement period?
Yes, an employee is free to participate in future Cycle to Work schemes offered by their employer. The Extended Hire Agreement is not a salary sacrifice arrangement and, apart from the refundable deposit, no further payments are required from the employee.
If the employment status of a scheme participant changes, what happens?
During the extended hire agreement period, the employer has no responsibility to contact Cycle Solutions, as the agreement is between Cycle Solutions and the employee. It makes no difference if you (the employee) change your job during the extended use period.
What if the bicycle is lost, stolen or damaged?
By signing the Extended Hire Agreement, you are committed to insuring the bicycle and equipment against theft, fire or accidental damage. Even though Cycle Solutions owns the cycles and safety equipment during the extended hire period, the agreement places the onus on you to have the cycle covered. If the bicycle is lost, damaged or otherwise rendered unusable, the extended hire agreement deposit paid by you will not be refunded.
We recommend that you contact the company that provides your home contents insurance policy as they will be able to advise whether the bicycle can be covered under the existing policy terms.We are also able to provide employees with details of a number of cycle specific insurance policies should you wish to take out separate insurance for the bicycle and equipment.
What if I have an accident whilst riding the bike?
The extended hire agreement that you will be required to sign stipulates that it is your responsibility to ensure that the bicycle and equipment is maintained and used safely.
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. Cycle Solutions (Cycle to Work) Ltd 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?
This is at the discretion of your employer contact us for clarification for your scheme
What if I have a problem with using the bicycle and safety equipment?
Call the Cycle Solutions (Cycle to Work) Ltd 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 0330 100 2480.
What if something goes wrong with the bicycle during the hire period?
All bicycles supplied direct through our online store come with a full 18 month warranty. In case of problems please call our technical support team on 0330 100 2480.