Tax-free Cycle purchase for University employees

• How the scheme works
• Employee's responsibilities

Staff can benefit from tax incentives included in the Government’s Green Travel initiative. The university has entered into a partnership with local company, Cyclescheme (www.cyclescheme.co.uk) so that employees can purchase bicycles and approved accessories free of Income Tax and National Insurance contributions. This is a saving of 33 per cent for basic rate tax payers and more for those on higher rates. The University’s tax status means VAT cannot be reclaimed.

A salary sacrifice scheme has been set up. The University will purchase cycles and accessories of an employee’s choice up to a maximum value of £1000. These will be loaned to the employee for travel to work. Repayments from gross salary are spread over 24 months. At the end of the loan period, an employee can purchase the cycle at market value - currently around 5 per cent of the original cost.

Approved accessories include:

• Cycle helmets
• Lights and mudguards
• Pumps
• Protective clothing
• Locks - also available from Security for £10. [details...]

How the scheme works

• Please read the Lease Agreement first
• Visit a shop participating in Cyclescheme and choose the cycle and accessories you require
  Entering a postcode at www.cyclescheme.co.uk/partners.php will show the 5 nearest shops
• Request a formal Cyclescheme quote on the official form
• Present the quote and a signed copy of the Lease Agreement to:
  Mr. Rob Coles - r.j.coles@bath.ac.uk
  Finance Office
  4.13 Wessex House
• On agreement of the scheme's conditions, a Purchase Order will be produced
• Exchange Purchase Order for goods.

Employee's responsibilities

• To confirm that the cycle will be used for travel to work (but leisure use is permitted)
• Maintain the cycle in a reasonable and safe condition
• Insure the cycle against theft

The University accepts no responsibility if a cycle is lost or stolen. Repayments will still be required until the end of the agreement.