How to set up a cycle to work scheme

How to set up a cycle to work scheme

If you’re an employer and you’re just dipping your toe into the waters of cycle to work schemes, then you’ve probably found that a lot of the information out there applies to employees only. In this guide, we’re going to walk through how to set up a cycle to work scheme for employers. We’ll cover:

● What the cycle to work scheme is ● Types of cycle to work scheme ● The benefits of the cycle to work scheme ● How to set up a cycle to work scheme for your employees ● How to process the scheme through payroll What is the cycle to work scheme?

The cycle to work scheme is a government-led initiative first introduced in 1999 which allows employees to loan or purchase bikes or accessories as a tax free benefit. The main goals of the scheme are to reduce pollution and promote healthier lifestyles.

Types of cycle to work scheme
Whilst you might have heard of the cycle to work scheme, you might not know that there are two distinct types of scheme available:

Loan Scheme
Arguably the most widely utilised cycle to work scheme, this involves employers loaning employees the amount of money they need to purchase a bike. Employees then repay the loan as part of their monthly salary. Many scheme providers offer these loans at 0% interest.

Pooled Scheme
Pooled cycle to work schemes are another option for employers. They involve the purchase of a fleet of bikes by an employer, which can then be loaned out to employees on a 1-1 or pool basis. What are the benefits of the cycle to work scheme? The benefits of the cycle to work scheme primarily revolve around promoting healthier lifestyles and reducing carbon emissions. We’ve written before on the subject of the health benefits of cycling to work, as well as bikes as a sustainable transport solution, both of which make a strong case for encouraging people to cycle to work. We’ve also spoken about the impact of exercise on mental health - improving the mental health of your employees could also lead to an increase in productivity and job satisfaction. In turn, you’ll see an improvement in performance and employee retention. However whilst those benefits are important, they’re not necessarily specific to you as an employer. So, let’s explore some of the benefits of the cycle to work scheme for employers.

One of the biggest benefits as an employer is staying competitive. Enhanced employee benefits packages are commonly used by businesses to attract top talent, and cycle to work schemes are a staple of these packages.

In this study from Aviva , they note that 8% of employees would want a cycle to work scheme as part of their benefits package. This figure jumps to 17% when isolating the study to those based in London. As an employer, it also doesn’t cost you to enroll in a cycle to work scheme in the long run. The bikes and accessories are all paid for by your employees.

An added benefit from our very own cycle to work scheme is that you save 13.8% of National Insurance contributions on the total value of all bikes.

How to set up a cycle to work scheme for your employees Hopefully, by this point, you’re sold on the benefits of the cycle to work scheme. Now all you need to do is implement it for your business. You have two options:
● Set up your own scheme from scratch ● Enroll in a pre-existing scheme such as Electric Bike Access For the purposes of this article, we’re going to focus on the latter point.
Setting up a cycle to work scheme for your employees through a pre-existing provider is a straightforward process, which we’ve made even easier at Electric Bike Access. Here’s how to set up a cycle to work scheme for your employees through us.

Sign up
First of all, we’ll need to take some details from you and ensure that you’re happy with the way that we work. To do that, you’ll need to head over to our registration form and populate the required fields. You’ll also have to agree to our Terms and Conditions before proceeding.

Approval process
Once you’ve signed up to our scheme, the details that you provide will be passed through to our team. We’ll then perform our initial checks and make sure that everything is in order. We might also be in touch at this stage to double check any information. Once your application is approved, we’ll then start our onboarding process.

Onboarding
During our onboarding process, we’ll guide you through any setup work needed. At the moment, the the onboarding process is handled in the admin area by our team once you’ve submitted your details. This involves the setup and configuration of your account with us. Once this is complete, you’ll be able to manage your company’s cycle to work scheme through a dedicated portal. This is typically https://your-company-name.ebikeaccess.co.uk .

Employee sign up
Once your portal is live, you can share the link with your employees, who will be able to sign up and browse the range of bikes and accessories available on our scheme. Once they’ve decided on their bikes, they’ll be able to select their bike and accessories of choice. Their application will then be sent to you to approve or reject.

If you approve their application, we’ll send them some agreements of their own to sign, and then the bike will be sent out.

How to process the cycle to work scheme through payroll To process your cycle to work scheme through payroll, you will need to produce a negative pre-tax, pre national insurance payment for the agreed amount for each employee.

Setting up a cycle to work scheme for your employees through Electric Bike Access is a quick, easy and painless process. We’re also a fully digital scheme, which means:

● There’s no physical paperwork to keep track of ● All of your documents are stored securely and available at the click of a button ● Managing employee applications is quick and easy If you’re still unsure how to set up a cycle to work scheme for our employees, you can request more info from our team here. Back to Blogs