Cycle to Work Scheme

What is the Cycle to Work Scheme?

Like many work places, the University of Chichester participates in the Government backed 'Cycle to Work Scheme' which allows staff members to purchase bikes and bicycle equipment tax free by paying monthly through their salary.

The University of Chichester has chosen this popular lifestyle benefit with the opportunity to lower the cost of a brand new cycling package, spread the cost over 18 months and improve wellbeing amongst staff.

How does it work?

The tax exemption is enabled via a process of salary sacrifice, whereby an employee agrees to sacrifice a part of their gross salary in return for a non-cash benefit, such as use of a bike and safety equipment.

Savings for employees participating in the scheme can be as high as 48% and are achieved by reducing gross salary, which means income tax and NI contributions are not paid on that part of the salary being sacrificed. This is a great incentive that we hope will encourage members of staff to reduce their carbon emission and get fit by cycling to and from work.

Once you have selected your items (please see below), the total value will be deducted from your salary over a period of 18 months.

How do I get involved?

The University uses two providers for this scheme – Evans Cycles and Cycle Solutions. Both companies offer a wide range of bicycles and safety equipment. Evans Cycles has stores nationwide and a website, Cycle Solutions is based purely online.
The University's Cycle to Work Scheme administrator is Heather Sena (Finance Department) who can be contacted at H.Sena@chi.ac.uk 

Evans Cycles

http://www.evanscycles.com/ride-to-work

Our account number with Evans is: HO-CT00934592

  1. Visit one of their stores, or browse the website (above)
  2. Once you have selected your bike and/or accessories, they can provide you with a quote. Their savings calculator can also show you how much you save
  3. Apply for your certificate (clicking the link on the website, above)
  4. Complete the online form (quoting our account number, above) and your application will be sent to the university scheme administrator for approval. Your certificate will then be emailed to you direct.
  5. Collect your new gear by redeeming your certificate at any of their stores nationwide, online or over the phone. You can collect your new bike and/or accessories in-store or arrange for home delivery. You need to redeem your certificate within 3 months.
  6. Payments commence the month after you have signed the hire agreement, and lasts 18 months. At the end of the term you will be given the option to either take ownership of the bike (for a one off additional fee) or continue hiring the bike at no additional cost. Find out more about transfer of ownership on the Evans website.

Cycle Solutions

http://www.cyclesolutions.co.uk/
1. Decide which bicycle meets your needs from 100's of models available in their online shop

2. Add any additional safety or cycle equipment required, remembering you must not exceed the monthly gross salary sacrifice and the total value of goods must not exceed £1,000.

3. You can order your bike and cycle equipment on-line or call our help line on 0330 100 1280

4. You will then be sent a hire agreement with an explanatory covering letter giving the next steps.

5. Once you have signed the hire agreement, pass one copy to our scheme administrator,  Heather Sena, who will email Cycle Solutions to confirm authorisation. You will then be contacted by Cycle Solutions to arrange delivery of the bicycle and to confirm your size/colour requirements.

6. Delivery will normally be within four weeks of the hire agreement being approved.

Employee FAQs

What's in it for me?

You can save income tax and national insurance contributions by having the bike's retail price removed from your salary before deductions. You can spread the cost of a new bike over 18 months. Sale price and retail discounts also apply.

Who does the bike belong to?

It belongs to University of Chichester for the 18 month period of the salary sacrifice. At the end of the hire period you can either return the bike to the university or continue hiring the bike but at nil monthly cost, or you can purchase the bike for a one off fee (currently 16% of original purchase price for bikes under £500 and 21% for those over £500).

What does "salary sacrifice" mean?

Salary sacrifice means giving up part of your salary in exchange for a benefit, in this case, a bicycle. Salary Sacrifice cannot be used if your monthly payments take your remaining gross salary to below the minimum wage.

What bikes can or can't I buy?

Road bikes, hybrids, mountain bikes, folding bikes and commuting bikes are all available; children's bikes are not available using this scheme. Any brand of bike, and sale bikes can be purchased.

Can I use the bike for leisure riding as well as commuting?

Yes, as long as the primary use is to get to work.

Can I purchase accessories only?

No, the rules set by the DfT say that you can only purchase accessories with a bike.

Can I buy a bike for somebody else?

No. The scheme does not apply to friends, family, other employees or anybody else.

Who is responsible for insuring the bike?

You are entirely responsible for ensuring that the bike and any safety equipment are adequately insured. If the bike is stolen you may be liable to continue to pay the monthly hire fees, however if you have insurance to replace the bike you can continue to take advantage of the benefit. Check with the scheme administrator.

Who is responsible for maintaining the bike?

You are entirely responsible for ensuring that the bike and any safety equipment are properly maintained.

When do I start paying?

Your monthly salary sacrifice will begin from the month following authorisation of the hire agreement. Check with the scheme administrator to confirm

Can I pay off the balance early or pay over a shorter time?

No. The commitment will run for 18 months.

What happens if I am absent from work?

If you take maternity leave, unpaid leave, holiday or sick leave that takes your monthly salary to below the amount of your salary sacrifice, your employer will suspend your payments until you are earning again.

Can I use the bike during the working day?

The bike should be used primarily for getting to and from work. It should not be used during work hours for travelling to meetings as this may raise insurance issues for University of Chichester.

What happens if I leave the company?

If you leave the company for any reason, your bike becomes a taxable benefit. The balance remaining on the price of your bike will be deducted from your final net salary. As these will no longer be part of the salary sacrifice you will not save the income tax or National Insurance on the remaining balance.

Is there a minimum and maximum amount that I can spend?

The minimum amount is £100, the maximum certificate amount is £1,000.

If you have any further questions regarding the Cycle to Work Scheme, please either visit the companies' websites or contact the scheme administrator:  Mark Rylands, M.Rylands@chi.ac.uk