Cycle to work
Save money, get fit and reduce your carbon footprint!
COVID-19 (Coronavirus) Update
If you are currently participating in the Cycle to Work scheme, you have the option to extend your Hire Agreement and freeze your repayments for up to three months. This would also apply an extension to the date your ownership fee is due. If you would like to extend your Hire Agreement, email email@example.com
The Cycle to Work scheme is a government initiative that encourages alternative travel and reduces environmental impact. Not only does it reduce your carbon footprint, but it allows you to spread the cost of getting a new bike, make income tax and national insurance savings, and also increase your fitness.
This benefit is administered by Cyclescheme - a leading provider of Cycle to Work schemes in the UK. All employees can request a certificate after completing three months’ continuous service.
Benefits of the scheme
- Typical savings of 32% on the cost of a new bike and safety equipment
- Spread the cost of a new bike over a year with 12 monthly instalments
- Save on your Income Tax and National Insurance contributions as instalments are deducted from your gross pay.
- Choose from over 500 brands of bike, from over 1850 bike shops across the UK
- At the end of the hire period you have a number of options, ensuring the best savings possible
For further information about how the Cycle to Work scheme works, visit www.cyclescheme.co.uk/nuffieldhealth
Follow the steps below to enrol for this benefit.
1. Check how much you can spend and save
Before you enrol for this benefit you will need to check that any salary sacrifice won't take your gross pay below the National Minimum Wage. This is dependent on your age and how many hours you work, and your basic salary. To see how much you can spend and save on a bike, use the online savings calculator on the Nuffield Health pages of the Cyclescheme website at: www.cyclescheme.co.uk/nuffieldhealth and click on 'What can I save?' > Advanced Savings Calculator. If you are unsure about how much you can spend, please contact the Reward Team at firstname.lastname@example.org
2. Find a bike shop and choose your bike and equipment
Once you are satisfied that you are able to meet the monthly instalments from your gross pay, you can choose which bike shop you would like to get your bike from, and pay them a visit. They will take the time to talk about what sort of bike and equipment are best for you, and provide you with a written quote for these.
3. Request your secure certificate online
Once you have chosen your bike you can return to the “Pick your package and apply” section of the Cyclescheme website and request your certificate for the value of your quotation. Cyclescheme will ask us to check your eligibility and once approved by us they will confirm your request. A hire agreement which outlines your monthly hire payments will also be sent to you to sign. Once you have signed this agreement, and Nuffield Health has paid Cyclescheme for the full value of the bike and any equipment, Cyclescheme will send you your certificate. Please allow up to 30 days for your certificate to be processed.
4. Collect your bike
Take your certificate to your chosen bike shop, where you can exchange it for your bike and equipment. You might want to call them first to check these are currently in stock. You will also need to take photographic ID with you, such as your passport or driving license.
Your certificate is valid for 60 days from receipt. Note that salary deductions usually start in the month after you have received your certificate.
Get access to a range of extra benefits through your exclusive MyCyclescheme account - www.cyclescheme.co.uk/active-benefits
Who can apply for the scheme?
All employees can apply for the scheme after completing three months’ continuous service.
How does the scheme work?
The scheme gives you access to a bike and safety equipment under a Hire Agreement between you and Nuffield Health.
You choose a bike and any safety equipment from a participating store and obtain a quote. You then visit www.cyclescheme.co.uk/nuffieldhealth to request a certificate for the value of the bike and equipment. If approved, Nuffield Health pays for the full cost of the bike and equipment and you will receive a certificate for your chosen value to redeem at the store.
You pay back the cost of the bike and equipment by way of a salary sacrifice arrangement. This means that you agree to forego an amount from your salary each month in return for the benefit of a bicycle and safety equipment.
Because the salary sacrifice payments reduce your gross pay, the amount of Income Tax and National Insurance that you pay each month is reduced, which means typical savings of 32% on the cost of the equipment for a basic rate tax payer.
What is a salary sacrifice?
A salary sacrifice scheme is where you give up part of your salary from gross pay (pay before deductions) for an agreed time, in exchange for a non-cash benefit, such as hiring a bike for work.
Is there a limit on the total value of the bike and cycling equipment that I can hire?
There’s a calculator on Cyclescheme’s website that will work out how much you can spend.
The maximum certificate value you can apply for is the equivalent of a month of your net salary, capped at £2,000 (including VAT), but your salary cannot go below the National Minimum Wage so it may be less than this. To calculate your savings, you can use the online savings calculator on the Nuffield Health pages of the Cyclescheme website at: www.cyclescheme.co.uk/nuffieldhealth under the “What can I save?” section.
What happens if my salary falls below the National Minimum Wage?
If after the salary reduction has been made, your salary falls below the National Minimum Wage, you will still be allowed to participate in the scheme. In this case you will be offered a bike Certificate for a fixed amount, capped at £499, payable over a 12 month period as a net deduction from your pay.
When will the salary deduction begin?
Salary deductions usually start in the month after you have obtained your certificate.
What happens if I do not use the full amount I have selected?
It is important to consider the amount you can afford and the type of bike that suits your needs.
Once you have chosen your value and completed the Hire Agreement you will not be able to increase or decrease the amount you have chosen. Your salary will be reduced by the amount that you originally agreed within the salary sacrifice letter even if you do not use the full amount.
What happens if the Certificate expires before I have selected my bike?
The Certificate is valid for 60 days – If you are having difficulties using your Certificate by the expiry date, we recommend that you contact the Cyclescheme Help Desk on 0344 879 5101.
What are my responsibilities?
You need to insure the bike to protect it from loss and theft. This is a condition contained within the Hire Agreement that you sign. If your household insurance policy cannot be used to cover the insurance on your bike, you can obtain a 10% discount on insurance policies at www.cycleguard.co.uk/cs. You also need to maintain your bike. All bikes come with a free first service and a minimum of a year’s warranty. After this it is then your responsibility to maintain the bike. Your local partner shop will be able to give you advice about ongoing service requirements for the bike
What happens if the bike is stolen before the end of the Hire Agreement?
You are responsible for the bike and when you sign the Hire Agreement you are agreeing to insure the bike. If the bike is stolen, your monthly salary reductions will continue until the end of the Hire Agreement, however as you will no longer be able to commute to work the remaining payments will be taken from your Net salary, which means you will not receive any savings on the reductions.
Can I apply for a Cyclescheme certificate for a member of my family?
No, the Cycle to Work scheme is for the benefit of employees only to obtain a bike for use to travel to and from work.
Can I come out of the scheme, if I no longer wish to cycle to work?
No, Consumer Credit law does not allow the Hire Agreement to be cancelled. Once you have signed the Hire Agreement, all outstanding monies will have to be paid back. Once you have collected the bike there is a 7-day cooling off period when you can change your mind. After this you cannot come out of the scheme.
Do I need to use the bike for work?
Yes, its main purpose should be for travelling to and from work. On making your selection you are confirming that at least 50% of the bike’s use will be for eligible work use. Eligible use includes cycling from home to the train station, cycling from the station to work, cycling from home to work (the reverse journeys of these are of course also eligible), cycling from one office to another.
There is no special requirement for you to record your trips.
Does this mean I have to cycle to work for half the year?
No. The percentage of the bike’s overall usage is the important factor (50% must be for eligible work journeys).
Who owns the bike?
Nuffield Health owns the bike for the duration of the Hire Agreement.
What happens at the end of the Hire Agreement?
The bike and equipment remain the property of Nuffield Health throughout the initial 12 month hire period. At the end of the Hire Agreement period, ownership is transferred to Cyclescheme, who will contact employees with three options:
- Under a new “extended use” agreement with Cyclescheme directly you can pay a small, one off refundable deposit (3% for certificate under £500 and 7% for certificates £500+) and continue to use the bike for 36 months (zero monthly payments). At the end of this period you can either choose to keep the bike (Cyclescheme retains your deposit and you become the owner) or you send the bike back to Cyclescheme and receive a full refund of your deposit.
- Take ownership of the bike immediately by paying Cyclescheme a higher value in accordance with HMRC valuation (18% for certificate under £500 and 25% for certificates £500+).
- Return the bike to Cyclescheme
Can I participate even though I am under 18?
Yes, however a Guarantor (parent or guardian) will need to counter-sign the Hire Agreement.
What happens if I leave during the term?
If you leave the company for any reason during the term of the hire period you will become liable to pay a termination fee of an amount not exceeding the outstanding Monthly Salary Reductions.
The termination fee will be paid from your net salary in accordance with the salary sacrifice letter. If your final net salary is insufficient to pay the fee you will be required to pay the outstanding monies to the company within 14 days.
What happens if I go on maternity leave?
If you are entitled to Enhanced Maternity Pay, your salary sacrifice payments will continue as normal. However, if you are due to receive Statutory Maternity Pay, your salary sacrifice payments must be placed on hold. Nuffield Health may be able to pause the Hire Agreement and payments until you return to work, however this decision is dealt with on an individual basis. If you need to discuss this, please email email@example.com
Any further questions?
For further information about how the Cycle to Work scheme works, visit www.cyclescheme.co.uk/nuffieldhealth