Q&A with Natasha from Electric Bike Access

A Q&A with Natasha, one of our customer advisors on the Electric Bike Access team

Q) How does the Electric Bike Access work? A) It’s really simple! The employer purchases the bike and rents it back to the employee over 12 months recouping the cost through a salary sacrifice. The employee saves up to 42% salary dependent on the RRP of the bike and any accessories taken through EBA through tax reduction. The employer also saves 13.8% on national insurance contributions on any employee that takes a bike through EBA. Everything is simple and completed online from ordering to signing off agreements, meaning there’s no waiting around for vouchers! Signing up your business, ordering your bike, and employer approval can all be complete in the same day! Plus, we aim to dispatch orders within 48hrs.

Q) I’m self-employed, can I use EBA? A) If you are self-employed and pay yourself using PAYE and above the national minimum wage then yes you can use Electric Bike Access. If you don’t pay yourself using PAYE and would use the bike for business purposes, i.e. traveling to clients on the bike instead of the car or getting supplies on the bike you can claim the full tax and NI contributions back as you would a normal business expense. The only down-side to this is you cannot split the cost as you would taking a bike through PAYE.

Q) Can I only have an Electric bike through Electric Bike Access? A) No, you can have any bike from our three brands, Raleigh, Haibike, and Lapierre! Our aim is to make electric bikes accessible and affordable hence the name! But contrary to a lot of speculation we don’t only provide electric bikes, we provide excellent electric and non-electric commuter, mountain and road bikes, we have the perfect bike for any commute.

Q) What’s a salary sacrifice and how does it work? A) A salary sacrifice is where the employee agrees to give up part of their pre-tax salary to the value of the bike and accessories taken through EBA. Because the amount is taken pre-tax it decreases the value of your salary which results in you paying less tax and national insurance. This means you will save money on your taxes reducing the overall cost of the bike and accessories! For example: If A standard tax rate payer were to hire a £3000 bike after the tax savings they would pay £170 per month for 12 months saving a whopping £960 on the RRP.

Q) What happens when the 12 months are up? A) We have options here! You can either take out a hire to own agreement between us and yourself (employees) and after 5 years the bike will be yours! There are no costs involved in this agreement and once the five years are up, we will send you a transfer of ownership document. Alternatively, you can start a new agreement to get a new bike. If this is the route you choose to ride (pardon the pun) we will arrange the collection of your previous bike and get the new one sent out to you once your new agreements have been signed and completed! Back to Blogs