Bike to Work
How does the scheme work?
Edinburgh Napier University pays for the full cost of the bike and any safety equipment you need. This is then paid back by way of a salary sacrifice arrangement under a Hire Agreement between you and the university. This means that you agree to forego an amount from your salary each month in return for the benefit of a bike and safety equipment.
Savings are made because salary sacrifice reduces your gross pay. This, in turn, reduces the amount of Income Tax and National Insurance that you pay each month. Savings are dependent on your personal tax code but will usually be around 32% over the hire period.
Who is eligible to join the scheme?
The scheme is open to all staff employed on contracted hours, whose contracts of employment with Edinburgh Napier run for at least the length of the agreement (12 months) and who do not drop below the national minimum wage once the loan repayment has been deducted.
To check if you are eligible to join the scheme, please co
ntact the Payroll Department,
payroll@napier.ac.uk, 0131 455 3528/3387.
You should use the bike mainly for travelling to and from work at least 50% of the time it is in use. This can be a journey in whole or part, for example to the train station or between offices.
Step 1. Check what you can save and find your local partner store online at
www.cyclescheme.co.uk/999de5. You will then need to visit your chosen store to select your bike and equipment. The store will give you a written quote.
Step 2. You apply for your Cyclescheme Certificate back at
www.cyclescheme.co.uk/999de5, entering the details from your quote form. You will be required to sign your online Hire Agreement at this time.
Step 3. If your employer approves your application they will countersign the Hire Agreement and pay Cyclescheme for the full retail price of the bike and equipment. This process can take up to 4 weeks.
Step 4. Cyclescheme will then send you your Certificate – this will either be by email or in the post, depending on what type of Certificate you have requested.
Step 5. The Certificate is then redeemed in the bike shop and exchanged for the bike package.
Step 6. At the end of the hire period Cyclescheme will contact you to discuss your end of hire options. The most attractive option is to pay either 3% (if your bike package was under £500) or 7% (if your bike package was over £500) of the original cost to enter into a 3 year extended agreement with Cyclescheme. During this agreement you will not be expected to make any further payment and ownership of the bike will transfer to you at the end. You may change employers during the agreement or use the scheme again if you wish.
Important points to consider
There are a number of important points staff should consider before deciding to take part in the Bike to Work scheme - please contact Cyclescheme helpdesk on 03448 795101,
info@cyclescheme.co.uk for more information.
Most employees will benefit from the Cycle to Work scheme but in some circumstances it may not be advantageous to join.
Benefit payments
There may be an impact on your entitlement to benefit payments such as statutory maternity or paternity pay, statutory sick pay and working tax credit, as they will be calculated on your reduced pay.
State pension
There may also be an impact on your state pension. We advise you to seriously consider the effect that a reduction in pay may have before you decide to join the scheme.
Financial advice
If you are unsure about whether or not you should participate in the Cycle to Work scheme you should seek your own financial advice.
Further advice
If you require further advice please contact the payroll office,
payroll@napier.ac.uk, and they will be able to advise on the tax and National Insurance issues, particularly if you are already a member of the childcare voucher scheme.
Terms and conditions
The bike and equipment will remain the property of Edinburgh Napier University until the end of the 12 month hire period. Therefore:
• you bear the entire risk of loss, theft, damage or destruction of the bike and equipment. If at any time during the hire agreement the equipment is lost, stolen or damaged to the point of no longer being usable for commuting, you will still be responsible for making any remaining payments. You are strongly advised to obtain insurance, which may be included in your home contents insurance.
• you must not hire out, profit from, sell, transfer or otherwise dispose of the bike and equipment.
• you must not make alterations to the bike or take it out of the UK during the hire period.
• as Bike to Work is a hire agreement you do not have legal title of ownership on the equipment.
• if you cease employment with the University before the end of the hire period, the outstanding balance will be deducted from your last net salary payment. This will mean that you lose any tax and National Insurance saving on any outstanding balance.
Hire agreement
Before joining Bike to Work you will be asked to read and agree to the detailed terms and conditions of the hire agreement. The hire agreement is available through the Cyclescheme website when you request a voucher.
Frequently Asked Questions
What is the maximum I can spend?
The limit set for employees is £3000.
Can I get equipment-only through the scheme?
Yes, you may request equipment-only through the scheme but only if you do not have an existing salary sacrifice in place for a bike. Useful if you have already got a bike!
What equipment can I get?
• Lights, including dynamo packs
• Locks and chains
• Mirrors and mud guards
• Children’s seats
• Reflective and high-visibility clothing and accessories
o Inc. straps, luggage covers, gloves, spoke reflectors
• Helmets
• Panniers, luggage carriers and straps, and bags
• Pumps, puncture repair kits and cycle tool kits
This list is by no means exhaustive; if in doubt please contact Cyclescheme.
Component bike parts are not allowed through the scheme.
Who is responsible for maintaining the bike and what happens if it is stolen?
It is your responsibility to maintain the bike. Cyclescheme Partner Shops will be able to advise about maintenance and servicing depending on how the bike is used and stores offer a free first service, usually after 6 weeks. If the bike is stolen, as long as you replace the bike and continue to use it mainly for commuting purposes, the salary sacrifice reductions can continue as normal.
Cyclescheme strongly recommend that you insure the bicycle and safety equipment as soon as it is collected from the store.
Does the bike have to be used for commuting?
You should use the bike mainly for commuting to and, if relevant, between work places (at least 50% of the bike’s use should be for work purposes). However, the bike can also be used for non-work purposes and there is no need for you to keep a mileage log.
What happens if I leave my job during the hire period?
Once signed, the Hire Agreement is non-cancellable following a cooling-off period of 7 working days following collection of the goods. This means that if you leave during the hire period you are obliged to pay the remaining salary sacrifice amount in full from net pay i.e. without any tax exemptions. You will be contacted by Cyclescheme regarding your end of hire options as normal.