Save at least 25% with Cyclescheme

Tax is complicated, Cyclescheme isn’t.

You choose a bike, hire it for an agreed length of time, and then snap it up for a fraction of its original value. All while making huge savings (at least 25%!) and spreading the cost. Join Cyclescheme today in 4 simple steps.

1. Choose your Cyclescheme package

Get the gear that suits you. Go for a bike, a bike and accessories, or just accessories – it’s your choice. 

With Cyclescheme, you can choose from any of the brands at Velo Edge, and put together your perfect commuter package up to the value of £1,000.

2. Submit your application

Once you’ve found your ideal package, head to Cyclescheme and submit your request. You’ll need your unique employer code and the details of what you would like to hand.

These will be sent to your employer for approval, and once approved you’ll receive your Cyclescheme certificate and Hire Agreement direct to your inbox.

3. Get your Cyclescheme package

It’s time to trade your certificate for your Cyclescheme package. Bring your voucher to Velo Edge and pick up your gear.

This is when your Hire Agreement kicks in and you start making impressive tax savings (at least 25%!). For the next 12 months, you’ll pay a fixed amount from your salary every time you’re paid. This is taken from your pre-tax salary and reduces the amount of Income Tax and National Insurance you pay resulting in great savings. For standard rate payers this is 25%, or for higher rate 42%.

4. Transfer Ownership

After 12 months, we transfer ownership to you for a small one-off fee. If your Cyclescheme package was under £500 you’ll pay just 3% of the original value, or for packages over £500 you’ll pay just 7%. So if you had a package worth £1,000 you’ll pay just £70. And that’s all you need to do! 

For the next 36 months, your Cyclescheme package will remain ‘hired’ with no more payday payments to make. At the end of this time, ownership of your package will automatically transfer to you.

FAQs

At least 25% - all in! If you’re a higher rate taxpayer, you’ll save at least 35%.

Almost any item you need to cycle to work including lights, locks, helmet and clothing.  Go for a bike, a bike and accessories, or just accessories – it’s your choice.

It’s an agreement between you and your employer. This details what you’re hiring, for how long and with what repayments.

This depends on how you get paid – weekly, monthly, 4 weekly, etc. Also, how long your Hire Agreement is in place for. For most people, this is 12 equal payments taken from your salary across 12 months.

A voucher that’s delivered direct to your inbox. Redeem this online or in-store for your Cyclescheme package.

Simple answer: tax. To benefit from Income Tax and National Insurance savings, an ‘Ownership Fee’ needs to be paid.

The Ownership Fee is a set percentage based on the age and value of your Cyclescheme package. At 4 years old, 3% needs to be paid on packages less than £500 and only 7% on packages over £500.