How can I buy an electric bike for less?
For employees who use a bike or electric bike to get to and from work, the government have designed a way to enable commuters to obtain a tax-free electric bike from their employer.
The employer purchases the bike and then loans it to the employee, who compensates the employer through monthly deductions from his/her salary. No VAT, Income Tax or NI is payable on the bike so the savings are substantial.*
At the end of the period normally 1 year to 18 months, the second-hand bike is “disposed of”, usually to the employee, if required, for a nominal value.
What are the benefits?
• Save up to 50%* on the cost of a bike and safety equipment
• Pay monthly and save VAT, National Insurance and Income Tax
• Get any make or model of bike from your local shop
• Save your employer money as well through NI savings
• Our secure extranet website means minimal hassle
How does it work?
This is an example of how a higher rate tax payer can save 50% on a £1000 bike package hired over a 12 month period:
• Bike package retail price (inc VAT) £1000
• VAT saved £148.94
• Income Tax and NI saved £348.96
• Monthly repayments £41.84
• Total bike package price £502.10
What do I do next?
• Talk to your employer and get them to agree to use CycleScheme
• Choose your electric bike. We issue you with a quote
• You enter a quote on a secure extranet site
• Your employer authorises the quote for you
• CycleScheme issue a secure voucher which you can use to collect your bike
We can supply direct or via a local bike shop
* Savings are affected by a company's tax status, finance arrangements and your personal level of taxation
Flexible, affordable and tax-free with cyclescheme.co.uk