Tax-free Cycle purchase for University employees

A salary sacrifice scheme has been set up whereby employees can loan, through a leasing agreement, bicycles and approved safety accessories for travelling to and from work.
The University has an agreement with Cyclescheme Ltd who provide the bicycles through a network of local and national dealers.  By visiting a participating dealer employees are able to choose a bicycle and safety equipment to suit their needs up to a value of £1,000 and the bicycle can also be used for receational use.
Approved accessories include:

• Cycle helmets
• Lights and mudguards
• Pumps
• Protective clothing
• Locks – also available from Security

Lease payments are made on a monthly basis by the employee by a reduction to their gross salary.  The initial agreement lasts for 24 months and as the repayments are made by a reduction to the gross salary the employee benefits from income tax and national insurance savings.  The University’s tax status means VAT cannot be reclaimed so must be included in the cost.
How the scheme works

• Please read the leasing agreement first (link to agreement)
• Visit a bike shop that is part of the Cyclescheme network.  You can find help on locating the nearest ones to you on Cyclescheme’s web site: http://www.cyclescheme.co.uk/partners
• Choose a bike and safety equipment and request a Cyclescheme quotation.
• Once you have your quotation you can set up your request on Cyclescheme's web site at: http://www.cyclescheme.co.uk/a12ed
  choose the "Get your bike" option and then "Request a Certificate" and follow the instructions.
• Send your signed leasing agreement and a copy of the quotation to the Payroll Office marked “Cyclescheme Application”.
• It takes around fourteen days to process and receive the voucher from Cyclescheme and you will be notified when it is ready for collection.
• Take the voucher to the bike shop and exchange it for the goods.

Employee’s responsibilities

• To confirm that the bike will be your main mode of travel to and from work.
• Maintain the bike in a reasonable and safe condition.