Employee Cycle to Work Scheme FAQs

Employee FAQs

Read common questions and answers on electric bikes and our scheme

What qualifies me for a cycle to work benefit?

To qualify for the cycle to work benefit an individual must have an income greater than minimum wage i.e. the value of the equipment must not take the employee below minimum wage. You must also be in full time employment, out of a probationary period and be over the age of 18. You must receive your salary via ‘pay as you earn’ or PAYE as it is normally referred to. The employer has to be signed up to electric bike access which is a free online process.

How much can I spend?

That’s up to you and your employer, your employer will set the maximum limit of the value the bikes and accessories cannot exceed, it is then up to you to decide. Use our handy savings calculator to work our exactly how much it will cost you each month and how much you could save on retail prices.

How do the savings work?

The employee agrees to give up part of their pre-tax salary to the value of the bike and accessories chosen, because the amount is taken pre-tax it decreases the value of the salary and results in the employee paying less tax and national insurance contributions. For standard tax rate payers (Annual salary up to £50,000) you save 32% and high tax payers (salary above £50,001) save 42%. The employee has convenient ownership options after the 12-month rental period is up. For example, a £3000 electric bike would only cost £170 for 12 months saving £960 for standard tax payers and £145 per month over 12 months saving £1260 for high tax payers.

Why does the price of the bike on my payslip show the full price of the bike split over 12 payments?

Electric Bike Access is a salary sacrifice scheme that means an employee agrees to give up an amount of their pre-tax salary in exchange for an electric bike. The value of the bike is shown on the left-hand side of your payslip (pre-tax section) the savings are calculated by reducing the amount of National Insurance and tax the employee would pay by the value of the agreement. For example, a bike at £2000 for the standard rate tax payer would save 32%, this equates to £640 in savings. The reduced amount is split into 12 payments back to the employer. The value paid by the employee would be £1360 so a monthly payment of 113.33. The remainder is government funded.

What happens after the 12-month rental period?

During the rental agreement Electric Bike Access owns the bike. After the 12-month agreement the employee has options to return at no cost, upgrade to the latest model and return the old bike or choose to extend the agreement to own the bike. If they choose to upgrade, we collect the old bike free of charge and a new rental agreement starts when the new bike is delivered. Ownership is a simple process, a new agreement is signed to extend the agreement, after 5 years the bike is owned outright by the employee, the extend to own agreement is totally free and offers the employee the most savings.

Who are electric bikes for?

They are for everyone, electric bikes are for anyone who wants to enjoy cycling that might be put off by particularly hilly terrain, a long commute or carrying a heavier load. Electric bikes make cycling accessible to everyone and remove the barriers that usually prevent people from getting on their bike. Under current regulations electric bikes can provide assistance up to 15.5mph. Although by putting in more energy yourself, it is easily possible to reach higher speeds. The range of our electric bike vary from 30 miles to 60 miles*, but it all depends on the system, the terrain and how the bike is used. Many other factors influence the range of electric bikes.

How far do electric bikes go?

Although this depends on many factors, terrain, wind resistance, how many hills you meet on your ride, most centre drive electric bikes will provide a range of between 30 – 80km, click here to use the Bosch electric bike range calculator.

https://www.bosch-ebike.com/en/service/range-assistant/

Why is it called a cycle to work benefit?

Electric Bike Access saves you money because cycling is seen as a benefit to all, the money is saved because the government contribute to the cost of the bike. The repayments are calculated by reducing the cost of the bike, less the Tax and National Insurance contributions to the value of the bike (32% or 42% discounting depending on your salary tax bracket) in return half of the journeys made on the bike should be travelling to work during the initial 12-month rental agreement. Our scheme provides an affordable way to purchase a premium bike or electric bike, you can use the bike as your own outside of work, and you do not have to use it to work daily.

What are the ownership options?

Ownership is simple, after the 12-month rental agreement is over you can choose to extend the hire period free of charge with a hire to own agreement, after five years the bike is owned with a transfer of ownership notification.

Can I buy a non-electric bike through the scheme?

Yes, we offer a huge range of bikes that start from as little as £299. Raleigh offers a range of city, hybrid and leisure bikes for the everyday cyclist. Lapierre offers everything from carbon road bikes to full suspension mountain bikes.

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We’re really pleased with the performance of the electric bikes so far and hope to see even greater take up as word spreads about the benefits for teams and individual staff members

John Bann, Cycling and Roadspace Transformation Manager - Nottingham City Council

Nottingham City Homes is committed to making our business more efficient, and environmentally friendly. We encourage our staff to opt for sustainable transport wherever possible,including travel between our many sites across the city

Hayley, Nottingham City Homes
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