Cycle to Work schemes gives employees the opportunity to buy bikes through their employers, leasing the bike for the duration of the contract and then purchasing the bike from the employer at the end of the contract agreement, giving up to 48% savings on the cost of a new bike!
We accept most of the major cycle to work providers vouchers including, Cyclescheme, Green Commute Initiative, Halfords Cycle 2 Work, Bike 2 Work, Vivup, Evans. We work with many others too, so check with your employer’s scheme provider to see if we are registered with them.
Costs will vary depending upon the bike that you purchase and your level of income, but here is an example of the savings that you could make:
In this example, a £5000 package has been purchased, consisting of a bike costing £4800 and £200 worth of accessories, with repayments being made over a 12 month period.
|Basic Rate Income Tax||Higher Rate Income Tax|
|Retail Price (incl. VAT)||£5000||£5000|
|Income Tax/NI saving||£1600||£2350|
|Monthly salary sacrifice||£416.67||£416.67|
|Total Cost of package inc.ownership fee||£3750||£3000|
For a better estimation on how much you could save, cyclescheme.co.uk provides a savings calculator, taking into account your salary and the amount you’d be looking to spend on a bike and accessories.
It varies, some employers will allow £3000, others will not set a limit to spend on a bike and accessories, and many schemes do allow you to add to this with your own money. Any additional payments you do make towards the overall cost, though, will not be eligible for any of the savings, so you will have to pay all of the extra cost.
The first thing that you need to do is speak to your HR department to find out which Cycle to Work scheme (if any) your employer has registered with.
If your employer does not currently offer a cycle to work scheme, you will need to get them to register with one of the schemes.
Whatever scheme your company is signed up to you will be asked to provide details of the bike and accessories that you wish to purchase through the scheme.
At Pearson, you can build your bike and accessories specification and add to cart. We then offer a cycle to work payment option. This allows you to reserve your bike, and then our customer services team will contact you to support completing the cycle scheme certificate process.
You will need to provide specification details to either your HR department or the scheme providers, depending on which scheme you are applying through. Once your employer and the scheme provider have both approved the application, you will be provided with a means of payment for the bike and accessories – usually either through a voucher or an invoice – equivalent to the value of the package. We have lots of experience of this so can help throughout the process.
In a recent update to commission structures, all cycle to work providers now charge Pearson up to 15% of the voucher amount to process each one. This is part legacy of when the vouchers had a £1000 limit, stores only paid a maximum of 10% (£100) to the provider. Since then providers now allow a limitless amount spent on cycle to work, but haven't changed the commision structure charged on each voucher.
As we hope you will understand, in order to keep a check on costs facing us, plus the administration required to process each voucher, we have found it necessary to charge an additional premium of 10% of each voucher amount, limited to a maximum of £300. This can be included within the voucher as part of the total amount of the bike. We will of course support you along the way with whichever provider you choose, so our customers can still benefit from sizeable cycle to work savings, and importantly spread the cost across the term of repayment.
We have offered industry-leading levels of customer service and products since 1860 - ideally, we would like to be able to carry on doing this for another 160 years!
If you live close to our Sheen store please don't hesitate to pop in and someone will be happy to help. You can find directions to our Sheen store.
If you have any questions or queries, don't hesitate to contact us on either via chat, phone +442086422095 or email firstname.lastname@example.org
Once we have received payment, the bike is yours to collect or, alternatively, we can arrange for it to be delivered to you (this may incur an additional cost).