3. Cyclists in the UK
Figures show that almost ¾  million of the UK work force cycle to work regularly and the mission is for this number to increase to 1 million by 2021
In the UK cycling is the third most popular recreational activity. An estimated 3.1 million people ride a bicycle each month, but only 744,000 out of these were bike commuters that cycle to work.

4. Obesity rates in the UK are the highest in Europe
Obesity rates in the UK are the highest in Europe. Nearly 64% of adults are classed as being overweight or obese
Cycling improves the areas of life linked to happiness
A bicycle has a less manufacturing footprint compared to a car
Bicycles provide mobility for those who may not qualify or afford to drive
Average paced cycling (10-11mph average) will burn about 400 calories/per hour
A 45-minute cycle every week can make you ‘biologically younger’ by nine years
The average distance travelled by car is about 6,6 miles when 4 miles is the average cycle commute

5. Bike 2 Work Scheme Ltd
Bike 2 Work Scheme allows employees to save up to 42% on the cost of bikes & equipment
The scheme allows employees a tax exemption whereby they save on income tax & NI contributions by having the cost of the bike deducted from their gross salary
Bike 2 Work Scheme administrate and help you to run your scheme free of charge. All your payroll department need to do is deduct the weekly/monthly salary sacrifice from the employees salary - information which will be provided

6. We are here to help….
Our helpline and dedicated staff are available 7 days per week to answer any queries you may have
Our website contains useful information and also a handy savings calculator
We have more than 1,500 Partner Bike Shops all over the UK who will help you choose the perfect bike

7. How are the savings made?
The Employer makes the initial payment for the bike as per the quotation
The cost of the bike is then spilt into weekly/monthly instalments and deducted from the Employees gross salary, before any tax or national insurance is deducted
In order for the Employee to take advantage of the scheme and the savings available they must enter into a Hire Agreement with their Employer. This provides details of the Employee’s salary sacrifice amount. Bike 2 Work Scheme will provide this document
“Salary sacrifice” is where an employee gives up the right to part of their pay due under his or her contract of employment in return for some form of non-cash benefit

8. Employee Benefits
Save up to 42% on the cost of a new bike and equipment
Cost is spread over weekly/monthly interest free payments
Save money on travelling costs
After sales service from chosen bike shops
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!

9. How It Works….
Any employee wanting to take part firstly visits one of Bike 2 Work Scheme’s Partner Bike Shops, chooses their bike/equipment and obtains a written quotation. The full list of Partner Shops can be found on our website
Employee registers online using their unique employer reference number and submits the quotation
The employer is then notified via that a quote has been submitted and to Log in to their account to approve or reject it
4. Once approved the Employer will receive a Hire Agreement and Invoice from Bike 2 Work Scheme

10. How It Works….
Both the Employer and Employee must then sign and keep a copy of the Hire Agreement for their records. Once signed, the Employer then makes payment to Bike 2 Work Scheme as per the invoice
Once cleared payment has been received Bike 2 Work Scheme will issue a Voucher which is posted to the Employer for them to pass on to the Employee or ed to the Bike Shop directly (if agreed)
The Employee then takes the Voucher to the Bike Shop, along with photographic ID, to collect their bike & equipment
8. The weekly/monthly deductions from the Employee’s pay begins

11. Gross salary sacrifice
Savings Illustration
Illustration based on a quotation value of £1,000
(Bike £900, Accessories £100)
Lower Rate Tax Payer
Higher Rate Tax Payer
Income tax saving
£200
£400
NI saving
£120
£20
Final cost
£680
£580
Total saving
£320
£420
Percentage saving
32%
42%
Gross salary sacrifice
£83.33
Net salary sacrifice
£56.66
£48.33

12. Transfer of ownership... Age of cycle
At the end of the repayment period the employer can offer the employee the chance to take ownership of the bike through a P11D as a benefit in kind
The fair market values set by HMRC are fairly high and we appreciate paying this as a lump sum would remove the majority of the savings, which is why we recommend an alternative option.
Age of cycle
Acceptable disposal value percentage
Original price of bike less than £500
Original price £500 +
1 year
18%
25%
18 months
16%
21%
2 years
13%
17%
3 years 8%
12%
4 years 3% 7%
5 years
Negligible 2%
6 years

13. Transfer of ownership...
At the end of the Hire Agreement Bike 2 Work Scheme will take ownership of any Bike/ Equipment and contact the employee to offer them the extended use option.
The extended use agreement allows employees to enter into a further 3 year agreement with Bike 2 Work and take advantage of HMRC’s lower valuation figures.
When taking advantage of this agreement the employee pays a small refundable deposit to Bike 2 Work (either 3% or 7% depending on the original cost of the bike/equipment) and continues to lease the bike/equipment from Bike 2 Work Scheme for a further 36 months.
If at the end the employee decides to keep the bike, Bike 2 Work will retain their deposit. If not, he/she will need to return the bike to Bike 2 Work Scheme and we will arrange a refund of their deposit.

14. Transfer of ownership...
For example: At the end of the 12 month repayment period we would give the employee the option of paying the refundable deposit of £70 (7% of £1000). He/she would lease the bike from Bike 2 Work for a further 3 years. At the end of the extended lease if they decided to keep the bike, we would retain the deposit and ownership of the bike/equipment would transfer to the employee.
Age of cycle
Acceptable disposal value percentage
Original price of bike less than £500
Original price £500 +
1 year
18%
25%
4 years 3% 7%

15. Great Employers
Think
Bike2Work Scheme