HOW DOES IT WORK?
essentially, your employer buys a bike of your choice from cycle 360 to allow you to ride to work (and for pleasure!)
you purchase it from the employer by making monthly payments from your salary, which is agreed between you and your employer that does not exceed three tax years
when the agreed purchase period comes to an end you own the bike!
WHAT CAN I PURCHASE ON THE CYCLE-TO-WORK SCHEME?
any bike and/or bike safety equipment (helmet, lights, mirror, high visibility clothing) to any value:
if the net cost to your employer (bike plus equipment less any contribution to initial cost made by you) is less that £1,000, that’s it - there is no benefit in kind charge to be potentially added to your ITIP salary payments.
if the net cost to your employer is greater that £1,000, the excess is a “benefit in kind” and will be added to your income for the purposes of calculating ITIP payments – still a great result!
for electric bikes the cycle-to-work scheme is even more generous!
if the net cost to your employer (bike plus equipment less any contribution to initial cost made by you) is less that £1,600*, again there is no benefit in kind.
if the net cost to your employer is greater that £1,600*, the excess will be added to your income for the purposes of calculating ITIP payments.
*the £1,600 allowance is reduced if you have received other benefit in kinds from your employer such as gym membership.
PURCHASING YOUR BIKE IN FIVE SIMPLE STEPS
1. you obtain a written quote from cycle 360 (inclusive of VAT)
2. you gain approval of your quote from your employer
3. your employer provides you with a purchase order addressed to cycle 360
4. you collect your bike and/or cycle safety equipment from cycle 360's store
5. cycle 360 invoices your employer who pay for the bike