Categories

Cycle to Work


The UK Government's Cycle-to-Work Scheme is aimed at encouraging UK citizens to adopt healthier lifestyles and reduce pollution by riding their bicycles to work instead of using the car (Green Transport Plan Initiative)

This scheme offer financial benefits to both UK employers and employees if they decide to start cycling and riding their bikes to work

How Do I Purchase through the Cycle to Work Scheme?

Follow these simple steps to obtaining your bike/safety product through the Cycle to Work Plan

- Choose your products from the Velodrome Shop website (this can include any Full Bike or individual components to make up a bike. The Cycle to Work policy now covers safety equipment such as Helmets)
- Email sales@velodromeshop.net asking for a Cycle to Work quote for your items
- Upon receipt of your quote, present this to your employer
- At the bottom of the Quote is a Hire Agreement Contract that both you and your employer will need to complete and sign in order to make the purchase
- Your Employer pays Velodrome-STS Ltd for your products via BACs/Bank Transfer


Halfords Cycle to Work Scheme

We accept Halfords Cycle to Work orders, further details can be found here - http://www.velodromeshop.net/index.php?p=product&id=2495


How the Cycle to Work Scheme works

- The employer buys the bike and associated cycle accessories selected by the employee;
- Most employers can reclaim the VAT on the bike and accessories purchased;
- Most employers can claim capital allowances on the bike and accessories purchased;
- The employer loans the bike to the employee for an agreed period (normally 12 to 18 months). The employee pays hire charges to the employer through a salary sacrifice arrangement for the duration of the hire period;
- As a result of the salary sacrifice arrangement the employer saves the Employers NIC (generally 12.8%) of the salary being sacrificed;
- At the end of the hire period the employer can sell the bike and accessories to the employee for a nominal amount. Alternatively the employer can retain ownership of the bike and accessories and allow the employee to use the bike and accessories with no salary sacrifice.

Hire Agreement

As the employer is hiring the bike and associated accessories to the employee a formal Hire Agreement is required.

This Hire Agreement between the employer and employee is regulated by the Consumer Credit Act. The OFT has issued a Group Consumer Credit Licence for employers providing employees with bikes and accessories with a value of up to £1,000, including VAT. Therefore provided that the value of bike and accessories does not exceed £1,000 the employer is not required to apply for a Consumer Credit Licence for its Scheme.

An employer will only need to obtain a Consumer Credit Licence if they wish to provide an employee with a bike and accessories with a value in excess of £1,000. Guidance on obtaining a Consumer Credit Licence can be found at www.oft.gov.uk

There is no limit to the value of the bike and accessories. Additionally it is possible for an employee to have 2 bikes if, for example, the employee needs a bike at either end of a train journey.

Detailed guidance on the benefits and implementation of Cycle to Work Schemes can be found on the Department of Transport website at www.dft.gov.uk

Please Note - We are NOT part of cyclescheme.co.uk, this is an independent organisation that introduces companies to the benefit of the Government's Cycle to Work Policy, you do not have to go through them to take advantage of the UK Government's Policy