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Cycle Scheme Bikes

Tax Free Bikes For Commuting With Hargroves Cycles

At Hargroves Cycles we support all of the leading Cycle to Work providers to offer employees the very best choice of product. If you cycle to work, you can save up to 42% on a new bike and safety equipment thanks to a government backed scheme that makes buying a new commuter bike much more affordable. The Cycle to Work Scheme is a salary sacrifice. This means the cost of a new bike and equipment is deducted from your salary as a non-cash benefit, so you save on tax and national insurance. Your employer effectively buys the bike and equipment on your behalf, then leases it back to you through an interest-free salary sacrifice scheme.

* Reduced bikes can be bought through Cycle to Work schemes, an extra 12% commission will added to the total cost.

Reasons to sign up

  • The scheme doesn't cost anything to set up.
  • The scheme can be easily completed online and you will be ready to offer your employees a bike within 2 weeks.
  • It's a great thing to offer to your employees simply because they can save up to 40% off the cost of a new bike.
  • Cycling to work helps you stay fit and healthy, burns a lot of calories, and reduces your carbon footprint.
  • This all makes for happier, healthier and more motivated staff.

What else can we do to help you?

We have 5 stores in the South of England - Southampton, Winchester, Fareham, Chichester and Swindon.

Complete UK coverage via our website. We deliver Cycle to Work bikes for FREE nationwide.

Our dedicated team are always on hand to help - any questions - simply give us a call on 02380 864832 and we will be happy to help.

Cyclescheme for employers

If you’re an employer looking to sign up with a cycle to work provider we recommend using the UK’s largest cycle to work provider Cyclescheme. Signing up only takes 10 minutes, and is an excellent perk to offer your employees. Head over to the Cyclescheme website and find out more

How to purchase with a cycle to work scheme

Purchasing a bike with cycle to work couldn't be simpler, below are steop by step guides for the process both online and instore.

  • Step 1.
    Add an eligible bike (and accessories) to your basket. Checkout with cyclescheme and select the cycle to work provider your employer is signed up to.

    Step 2.
    Once you submit your order you will receive an email (This email is not confirmation of a completed order and should be used as a quote). The email will contain all the information you will need to obtain a valid cycle to work voucher from your employer.

    Step 3.
    When you have your cycle to work voucher email it to us at websales@hargrovescycles.co.uk . Once we receive your email we will send you confirmation of your order

    Step 4.
    Get excited and wait for your new bike to arrive.

  • Step 1.
    Your employer needs to be registered with one of the above Cycle to Work schemes. They can find out how to do this from information on one of the Cycle to Work Scheme websites (see below).

    Step 2.
    Visit Hargroves Cycles, choose the bike and, if required, safety equipment and get a quotation.

    Step 3.
    You apply for a Certificate online using the relevant Cycle to Work Scheme website. Your employee will usually sign an online Hire Agreement at this time..

    Step 4.
    Once approved, a Certificate will be issued to either your employer or directly to you, whichever is requested.

    Step 5.
    The Certificate is then redeemed at Hargroves Cycles in exchange for the bike package. Salary sacrifice then commences over the hire period (usually 12 months).

    Step 6.
    At the end of the hire period the owner of the bike may choose to offer the employee ownership of the bike for a full market value.

Example purchase

Example Purchase Normal
Tax Rate
Higher
Tax Rate
Total cost of bike and accessories £584.98 £584.98
Income tax saving over hire period £116.68 £233.35
Employee NI saving hire period £70.01 £11.67
Final cost of bike & accessories £398.29 £339.96
Total saving £186.69 £245.02
Gross salary sacrifice, based on 12 month hire period (this should be the figure displayed on your hire agreement) £48.75 £48.75
Monthly payment, based on 12 month hire period £33.19 £28.33
Percentage saving over RRP 31.9% 41.9%

We Accept Cycle to Work Vouchers From The Following Providers

Which Cycle to Work vouchers does Hargroves Cycles Accept?

We accept vouchers from Cyclescheme, Cycleplus, OnYourBike, Bike2Work Scheme & SME|HCI

How much can I Spend?

For most, the maximum is £1000 including VAT. If your employer has a consumer credit license then the allowance is higher.

What Can I Buy?

Any cycle you can use for commuting. It can have two, three or even four wheels. It can be a road bike, hybrid, mountain bike or a folding bike but cannot be a childrens bike. You can also use the voucher to get any safety equipment you need for commuting. This might include:

  • Helmets
  • Bells and Bulb horns
  • Lights
  • Mirrors
  • Mudguards
  • Cycle Clips and dress guards
  • Panniers, Luggage
  • Locks and Chains
  • Pumps and repair kits
  • Refelctive clothing, white front reflectors and spoke reflectors

Can I only use it to cycle to work?

No, the government guidelines stipulate that the bike be used at least 50% for riding to work. So do what you like for the other 50%.

Who owns the bike?

Technically your employer owns the bike and equipment and loans it to you during the hire period.

What happens at the end of the hire agreement?

To keep the scheme tax free, there can be no guarantee you employer will transfer ownership at the end of the hire period. However, this is usually what happens. Because HMRC has set fair market values that the employer must pay to keep the bike, you may be asked to pay 18% of the value for a bike costing less than £500, or 25% for one costing £500+ More often, though, your employer will agree to extend the hire period by up to 36 months. During this time you make no further payments and at the end of the term the bike's fair market value is considered negligible and ownership will be transferred to you.

How much will i actually save?

This all depends on your own tax status. Generally, without taking into account any payments or deposits at the end of the hire term, basic rate taxpayers will save 32% and higher rate taxpayers 42%.