Cycle to Work
10 August 2009
Cycle to Work - What is it all about?
www.cyclexpress.co.uk and our high street shop, Middleton Cycles in Ormskirk, Lancs are now able to offer bikes and accessories under the Government's Green Transport Plan, an initiative aimed at promoting the use of bikes as an alternative form of transport.
Basically, employers can offer a tax-free loan to employees to buy bikes and equipment, saving the employee up to 50% on the initial set-up costs for commuting to work by bike. The employee makes a 'salary sacrifice', ie agrees to temporarily reduce their wages in order to pay back the loan. Any tax payers who pay PAYE are eligible for the scheme.
We have joined the following schemes:-
How does it work?
1. Your employer buys a bike from www.cyclexpress.co.uk or our shop, Middleton Cycles
2. The employer is able to claim back the VAT on the invoice
3. The VAT free price of the bike is deducted from the employee's salary over a period agreed by the employer - the employee is leasing the bike from the employer during this time and the employee is making additional savings as they are not paying Income Tax or National Insurance on the on the amount of salary reduction
4. At the end of the term, the employer can sell the bike to the employee at an agreed sum
Example Saving
Bike RRP = £500 + Accessories for £100 = Total Spend of £600
VAT recovered by employer = £105.00
Cost for employee under salary sacrifice = £495.00
Less Employees PAYE saving through salary sacrifice = £99.00 (std rate tax payer @ 20%)
Less Employees National Insurance saving through salary sacrifice = £54.45 (11%)
Cost to employee = £341.55 (saving of 43%)
What do I do now?
1. Find out if your employer has already joined one of our current schemes - if they have, contact us on 01695 577240 to make the arrangements and complete the necessary procedure
2. If they are not in a scheme currently, they can either join one of the schemes that we are registered with (click on the logos above to find out more about the schemes) or
3. If your employer is already in a scheme but it's not one of the ones mentioned above, that's not a problem.
4. The 10% on line discount does not apply to any bicycles purchased via Cycle to Work Schemes.
Just give us a call on 01695 577240 and let us have the details and we will register to that scheme so that you can buy your bike from us.
Middleton Cycles even has a unique Body Scanner to measure you up for your perfect fitting frame in minutes. For more information on our Cycle to Work scheme or bike fitting, contact our team at the shop on 01695 577240.
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