Cycle to Work
The Cycle to Work Scheme is a Government legislation that allows you to save up to 42%* on a bicycle and safety equipment. It's easy for employers to join a Cycle to Work Scheme. Condor Cycles participate in a number of popular Cycle to Work schemes, saving you money on both your bike and your commute to work.
What’s the catch?
Think it sounds too good to be true? We promise you it isn’t!
As part of the Government’s Green Transport Plan, employers are able to provide cycles and safety equipment to employees as a tax-free benefit.
Technically speaking, this means employees hire bicycles from their employer, and can buy them at the end of the salary sacrifice period at fair market value.
The employer buys the bike and safety accessories at full retail price, including VAT, which can be reclaimed in the normal way, if applicable. The balance is recovered from a reduction in the employee’s gross salary, and employers also benefit from National Insurance contribution savings.
The net result? You make a saving when purchasing through the scheme!
*Actual savings depend on the financial circumstances and you and your employer.
How do you make the saving?
The total price of the bike and safety accessories is deducted from your salary in equal instalments over a period of time (typically 12 or 18 months), but since this is deducted before tax, you don't pay PAYE or NI on the income you forego. Furthermore, if your employer is VAT registered, you are saving the VAT as well. All of this can equate to a saving of up to 55%! Try our savings calculator to give yourself an idea of the potential saving.
At the end of the term, your employer will give you the option to purchase the bike for a nominal fee.
How often does the bike have to be used for work?
There is no specified number of days that the bike has to be used for cycling to work, nor do you need to record the number of rides to work.
Can I mail order a bike from Condor Cycles?
Yes. If you or your employer is not based in London and you are unable to visit us in store, you can discuss your needs and bicycle requirements with us via phone or email and we will ship the bicycle to you. Upon receiving your scheme voucher, please note that any delivery fees are paid for outside of the scheme i.e. do not qualify for tax relief.
Who is responsible for the bike?
You are responsible for maintaining and insuring the bike during the hire period. Condor Cycles has a fully equipped workshop offering a range of servicing options. We also stock range of cleaning and maintenance tools.
What if the bike is stolen during the hire period?
We recommend that you invest in a lock with a ‘Sold Secure’ rating and get your bike insured. If your bike is stolen, you’ll have to repay your employer from your net pay, without any tax savings.
Can I get a sale bike?
Yes, though since we have to pay a fee to the scheme administrators when we supply a bike, we add a small surcharge for admin costs as the bike has been discounted.
Can I buy a frame or accessories only?
The Cycle to Work Scheme dictates that only a complete bicycle and safety accessories can be purchased. Car racks and children’s bikes are not available through any Cycle to Work schemes.
What happens at the end of the hire period?
At the end of the hire period employees may be given the opportunity to buy the bike for a fair market value, though this is not an automatic entitlement. The fair market value cannot be stated before or during the hire period as this could be considered a benefit in kind and therefore not be eligible for tax benefits. Many employers opt for one of the schemes to take ownership of the bikes at the end of the hire term and offer a sale to the employee via the scheme.
What happens if an employee leaves their job or is made redundant?
Once signed, the hire agreement is non-cancellable following a cooling-off period of 7 working days from collection of the goods. This means that if an employee leaves or is made redundant from their employment during the hire period, they are obliged to pay the remaining salary sacrifice amount in full from net pay, i.e. without any tax exemptions.
Which schemes do you accept?
We currently accept:
- On Your Bike
- Cycle Plus
- Salary Exchange/Salary Extras
- Bike 2 Work Scheme
- Cycle Solutions
- Connected Benefits (SME HCI)
We may charge a fee depending on the scheme and bike chosen. If your scheme isn't listed, please get in touch as we may be able to sign up to it.
Is there a charge for accepting the certificate?
On some schemes we levy a charge (normally 6% for non-sale bikes and 9% for sale bikes). Often when we redeem the certificate a commission is deducted by the scheme administrator. Due to the bespoke nature of our bikes and the included services we offer we cannot absorb all of it so levy a small charge. It is important to remember that even with this factored in the benefits of buying through Cycle to Work far outweigh the charge.