ABOUT BIKE2WORK SCHEME
Bike2Work Scheme is a UK government tax incentive aimed at encouraging employees to cycle to work, thereby reducing air pollution and improving their general health. The scheme is already in operation and allows employees to benefit from a long term loan of a bicycle and safety equipment completely tax free. All our bicycle prices are including international shipping from The Netherlands to your doorstep. For accessories a small (international) shipping cost is applicable. Please highlight any accessories you are interested in, and we will add these to your quote request.
NOTE: Bike2Work Scheme is one of the Governments Cycle-To-Work Scheme partners.
HOW DOES THE SCHEME WORK?
The below overview should be read in conjunction with The Department for Transport's 'Cycle to Work schemes' booklet, which is available from http://www.dft.gov.uk/pgr/sustainable/cycling/cycletoworkguidance The Bike2Work Scheme can be initiated either by the employer or employee. For example, one of your employees may find out about the scheme through visiting our site, www.anddutch.co.uk, and request that you set up the scheme by using the “Bike 2 Work Scheme”. Alternatively, you may want to initiate and publicise the scheme to encourage cycling among your employees. The below gives you an overview of steps to undertake in the schemE.
WHAT TO DO?
- Employer registers with Bike2Work Scheme - which is easy to do. Also an employer can register with various cycle-to-work-schemes. http://www.bike2workscheme.co.uk/signup.php or call on 0800-6122603. Please make sure to quote AND DUTCH.
- Employee visits us, AND DUTCH, website; www.anddutch.co.uk, to make their selection and obtain a written quote from us.
- Once employee receives the written quote from us (request per email: firstname.lastname@example.org) please download and fill out the "Quotation Form"
- As part of the "quotation form" requirement, please add our bike shop code: BKS795
- Employee provides a copy (PDF) of the filled out "Quotation Form" to email@example.com
- Employee presents written quotation to the employer for authorisation
- Employer provides authorisation to Bike2Work Scheme
- Employer makes payment to Bike2Work Scheme as per quotation form
- Bike2Work Scheme issues voucher per 1st class post to employer
- Employer to pass on voucher to employee
- Employee presents voucher to us, AND DUTCH, via www.anddutch.co.uk, (a scan of the voucher send per email to firstname.lastname@example.org is sufficient)
- AND DUTCH provides employee their chosen bicycle/ equipment send fully boxed and assembled directly to the address as indicated.
- Employee's Interest Free monthly payments commence
- Fitter, healthier and more productive staff
- Healthy staff are less likely to be absent through stress or illness
- Savings on employers NI contributions (up to 12%)
- Reduce your business carbon footprint
- Bike2work scheme administers the scheme for you at no cost to your company
- Cycling to work reduces congestion and demand for parking
- Scheme is an attractive benefit for employees
- Your company will be registered with Green Achiever and will be listed in the Green Achiever Business Directory
- Save up to 50% on the cost of a new bike and equipment
- Cost is spread over 12 monthly interest free payments
- Save money on travelling costs
- Reduce your carbon footprint
- Lose weight and tone up
- Improve your general health and well-being
- Improve mental health and help reduce stress levels
- Look good, feel great, save money and help save the planet!
EXAMPLE SALARY SACRIFICE
Under his employer’s scheme, John chooses to have the loan of a bike retailing at £450.
- His employer reclaims the VAT – reducing the cost to £383
- This net amount is met by John agreeing to a salary sacrifice whereby his gross pay is reduced by £21.28 per month over 18 months. (a minimum of 12 months is required)
- The monthly net cost to John will be £14.26 because he doesn’t pay tax or national insurance on the gross pay (£21.28) that he has sacrificed.
- At the end of the 18 month period John’s employer offers the ex-loan bike for sale at a fair market price under a separate sale agreement e.g. £50. (To establish the fair market price, employers should obtain quotes from us, www.anddutch.com or other retailers as the value of the bike will partly depend on the level of use).
- The cost to John is:
- Net salary given up £14.26 x 18 months = £256.68
- Cost to buy the bike at end of the period = £50
- Total cost to John (68% of retail price) = £306.68