New Cycle to Work Scheme has no £1000 limit.
A new scheme launched by PROc2w complies with all the relavant legislation, and HMRC guidance and whileremoving the £1000 ceiling. Further, the employer does not need a credit licence or FCA approval. This means that employees can select a much wider range of electric bikes and make even greater tax and National insurance savings. Anyone who pays UK PAYE is eligable and any UK employer can offer the scheme to their employees.
How does it work?
You, the commuter, selects the bike you would like to have. Your details are uploaded on to PROc2w’s website . They deal with your employer and produce all the documentation. The employer pays the shop for the bike and then you collect it. Your employer sets up a salary sacrifice scheme for the 12 monthly instalments so saving you tax and NI. At the end of the scheme,the bike is transferred to your ownership.
The savings for the commuter and the employer.
A higher rate tax payer saves 42% of the value of the bike and a standard rate taxpayer saves 32%. Additionally, the employer saves 13.8% on Employers National Insurance and may well be able to claim Capital allowance on the purchase. This will gice the employer a 31% return on investing in an electric bike for you to use for commuting.
AXcess Electric Bikes at Honiton, Devon EX14 1SE and Bugle St Austell PL26 8PD are pleased to be two of the partner shops for this Government Initiative.
If you know that your employer is on the Cycle to Work scheme you can come and try some electric bikes and safety equipment and make a selection. We will then give you an official quote for you to give to your employer and start the process. If you already know which electric bike you want we can complete the form on the phone.
Cyclescheme have recently improved their respose rate of the scheme and some applicants now get their bikes within 3 or even 2 weeks. Employers who do not have a Consumer Credit Licence are limited to schemes under £1000 and we have several electric bikes that qualify under this limit.
If there are a number of you at the same place of work interested in The Scheme, why not contact us through email@example.com or phone us and arrange a time when we can bring some bikes over to your place of work for you to try after work or in your lunch hour. The contact details for both branches are on the Contact Us page.
Below is a copy of the Cyclescheme leaflet, which explains The Scheme more fully. This leaflet is currently out of date and we are awaiting a new copy. There have been important changes. Firstly, your employer must charge you the VAT on the bike which means that the average saving is around 30%. Secondly,the arrangements when the 12 month payment period expires has changed.
You can also go direct to their web site, www.cyclescheme.co.uk and get a payment quotation based on your own financial circumstances. We are also members of several other schemes.
If you are self-employed or if your employer is not in the scheme, we may have another scheme to help you. Talk to us about a 50%deposit +50% Interest free loan scheme. You will own the bike at the end of the 12 month period.