2. Contents
Executive Summary ………………………………………………………………………………………………………………………………………2
Bike2Work Scheme Ltd …………………………………………………………………………………………………………...…………………..3
Employee Benefits ……………………………………………………………………………………………………………….……………..……….4
Employer Benefits ……………………………………………………………………………………………………………………….………..……..5
How it Works ……………………………………………………………………………………………………………………………………..………..6
Cycle Insurance………………………………………………………………………………………………………………………………………..……8
We are here to help ………………………………………………………………………………………………………………………………..……9
Communication Activities……………………………….................................................................................................10
How are the savings made…………………………………………………………………………………………………………….…………...11
Savings Illustration……………………………………………………………………………………………………………………….……………..12
Transfer of Ownership…………………………………………………………………………………………………………………….………....13
Testimonials……………………………………………………………………………………………………………………………………………….17
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3. Executive Summary
Bike2Work Scheme has been in operation since 2009 and is one of the UK’s leading
providers of cycle to work schemes.
The key to our success is flexibility. By offering our clients access to a huge variety of
partner bike shops nationwide –in excess of 1,500 - we are able to effectively and
collaboratively administer the Bike2Work Scheme on behalf of any UK-based
organisation.
In 2013 alone Bike2Work Scheme helped over 3500 companies implement cycle to
work schemes and enabled over 15,000 employees to start cycling to work.
Following our year on year increase in turnover this year we are expecting a
turnover of £3M.
Our focus on quality is codified within our ISO9001:2008-accredited Quality
Management Systems (QMS). Our QMS underpins everything that we do and
ensures that we are meeting the highest possible standards in terms of planning,
administering, promoting, auditing and improving each scheme we deliver.
The success of this client-focused, sustainable approach has been recognised by our
contemporaries. In 2012 Bike2Work Scheme was highly commended for its
commitment to the environment at the Veolia Environmental Business of the Year
Awards.
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4. Bike2Work Scheme Ltd
Bike2Work Scheme allows employees to save up to 42% on the cost of
bikes & equipment
The scheme allows employers to save up to 13.8% per employee on
Company National Insurance Contributions
The scheme allows employees a tax exemption whereby they save on
income tax & NI contributions by having the cost of the bike deducted
from their gross salary
Bike2Work Scheme administrate and help you to run your scheme free
of charge. All your payroll department need to do is deduct the
weekly/monthly salary sacrifice from the employees salary -
information which will be provided
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5. Employee Benefits
Save up to 42% on the cost of a new bike and equipment
Cost is spread over weekly/monthly interest free payments
Save money on travelling costs
After sales service from chosen bike shops
Reduce your carbon footprint
Lose weight and tone up
Improve your general health and well-being
Improve mental health and help reduce stress levels
Look good, feel great, save money and help save the planet!
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6. Employer Benefits
Fitter and healthier staff
Healthy staff are less likely to be absent through stress or illness
Savings on employers NI contributions
Reduce your business carbon footprint
Cycling to work reduces congestion and demand for parking
The scheme is an attractive benefit for employees
Your company can be registered with Green Achiever and will be listed
in the Green Achiever Business Directory
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7. How It Works….
1. Any employee wanting to take part firstly visits one of Bike2Work
Scheme’s partner bike shops, chooses their bike/equipment and
obtains written quotation. The full list of partner shops can be found
on our website www.bike2workscheme.co.uk
2. Employee registers for the scheme via the website using the employer
pin. Once registered, he/she can log in and submit the quotation.
Bike2Work Scheme will look at every application closely and if there
are any items which do not comply with HMRC’s guidance the point of
contact will be notified. Bike2Work Scheme keep the list of items up to
date by liaising with HMRC and receiving updates regularly regarding
the guidance
3. The employer will then be asked to log in to approve/decline the
quote
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8. How It Works
Once approved the employee will receive an e-mail confirming their quote
has been approved and containing their hire agreement - the hire agreement
needs to be signed and returned to Bike2Work Scheme
Both the employer and employee must then sign and keep a copy of the hire
agreement for their records
Once signed, the employer then makes payment to Bike2Work Scheme as per
the invoice. Once payment has been received Bike2Work Scheme will issue a
voucher which is posted to the employees home address
The employee then takes the voucher to the bike shop, along with
photographic ID, to collect their bike & equipment
The weekly/monthly deductions from the employee’s pay begins
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9. Cycle Insurance
When entering into the hire agreement the employee is responsible for
insuring the bike/equipment. Employees can take advantage of 20%
Discount with our official cycle insurance partner Cycle Plan. This
information is included within the voucher pack, which is sent out on the
day Bike2Work Scheme receive payment from the company.
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10. We are here to help
Our helpline is open 5 days a week from 9am until 6pm to answer any
questions your employees may have
You will be assigned a dedicated account manager who will ensure
your scheme runs successfully and smoothly
Our website contains useful information and also a handy savings
calculator
We have more than 1,500 partner bike shops all over the UK who will
help you choose the perfect bike
Bike2Work Scheme will provide all promotional literature free of
charge to help you to promote the scheme to your employees
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11. Communication Activities
On site promotional days where employees can be advised by the bike experts
and trial some bikes available
A tailored e-mail campaign can be
created to be sent out internally to
employees from Bike2Work Scheme.
You will be provided with posters that can
be placed in key locations in the company
Branded leaflets will also be provided that can be placed in key locations for
employees or they can be distributed through employees wage slips
You can find examples of the promotional material we provide at the back of
the information pack
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12. How are the savings made?
The employer makes the initial payment for the bike as per the quotation
The cost of the bike is then split into weekly/monthly instalments and
deducted from the employees gross salary, before any tax or national
insurance is deducted
In order for the employee to take advantage of the scheme and the
savings available they must enter into a hire agreement with their
employer. This provides details of the employee’s salary sacrifice
amount. Bike2Work Scheme will provide this document
“Salary sacrifice” is where an employee gives up the right to part of their
pay due under his or her contract of employment in return for some
form of non-cash benefit
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13. Savings Illustration
Illustration based on a quotation value of £600
(Bike £500, Accessories £100)
Lower Rate Tax Payer Higher Rate Tax Payer
Income tax saving £120 £240
NI saving £72 £12
Final cost £408 £348
Total saving £192 £252
Percentage saving 32% 42%
Gross salary
sacrifice
£50 £50
Net salary sacrifice £34.00 £29.00
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14. Transfer of ownership...
At the end of the repayment period the employer can offer the employee the chance
to take ownership of the bike
The fair market values set by HMRC are fairly high and we appreciate paying this as a
lump sum would remove the majority of the savings, which is why we recommend an
alternative option
At the end of the Hire Agreement Bike2Work Scheme will take ownership of any bike/
equipment and contact the employee to offer them the extended use option
The extended use agreement allows employees to enter into a further 3 year
agreement ( based on 12 month repayment period) with Bike2Work Scheme and take
advantage of HMRC’s lower valuation figures
When taking advantage of this agreement the employee pays a small refundable
deposit to Bike2Work Scheme (either 3% or 7% depending on the original cost of the
bike/equipment) and continues to lease the bike/equipment from Bike2Work Scheme
for a further 36 months
If at the end the employee decides to keep the bike, Bike2Work Scheme will retain
their deposit. If not, he/she will need to return the bike to Bike2Work Scheme and we
will arrange a refund of their deposit
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15. Transfer of ownership
For example: At the end of the 12 month repayment period we would
give the employee the option of paying the refundable deposit of £70
(7% of £1000). He/she would lease the bike from Bike2Work Scheme for a
further 3 years. At the end of the extended lease if they decide to keep
the bike, we would retain the deposit and ownership of the
bike/equipment would transfer to the employee.
Age of cycle Acceptable disposal value percentage
Original price of bike less than £500 Original price £500 +
1 year 18% 25%
4 years 3% 7%
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16. Testimonials
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ALDI would recommend Bike 2 Work Scheme to any employer. We
have found the service provided by the team at Bike2Work Scheme
to be professional, speedy and friendly. A number of our staff have
already purchased bikes through the scheme since our registration
and we predict many more will take advantage of this salary
sacrifice in the upcoming months
SHOP DIRECT GROUP launched the Bike2Work Scheme in 2013. Since
then many of our staff have taken up this fantastic benefit. We have
found the customer service provided by Bike2Work scheme outstanding.
From an administration point of view the Bike2Work Scheme have made
this an effortless process for us. We were given our dedicated account
manager who has dealt with any queries our staff have had and
consistently ensured the scheme has been well promoted.
NG Bailey launched the Bike2Work Scheme early 2014 and it has
proven to be extremely popular with our employees. We have
found that the Bike2Work Scheme helpline and website has
assisted in our employees understanding of the scheme.
