Cycle to work

Words by Hargroves Cycles

on 14/06/2019 14:48:00

Cycle To Work

Save between 25% - 39%, have a healthier journey to work, and reduce environmental pollution with tax free bikes for commuting at Hargroves Cycles.

Say Goodbye To Gridlock

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 39% 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 priced bikes can be bought through Cycle to Work schemes. However, an extra 10% commission will be added to cover the provider's fees.Halfords cycle to work vouchers will incur a 15% commission(can be used in store only)


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.
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

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How to purchase with a cycle to work scheme

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


Step 1. Choose an eligible bike and accessories. Enter the details of the products you have selected into the Cycle To Work quote form (or contact us by phone or email.)

Step 2. Once you submit your online quote, we’ll put together a quotation for your order and email you. This email is not a confirmation of a completed order, it is a Quotation. It contains the information your employer will need to give you a voucher and does not reserve your bike at this stage.

Step 3. Take this email quotation to your employer and ask them to issue you with your valid cycle to work voucher.

Step 4. When you have your cycle to work voucher from your employer, please mail it to us at websales@hargrovescycles.co.uk . Please note that some schemes require you to send us the original voucher – if this applies to you, we’ll let you know this when we receive your email.

Once we receive your email (or original voucher if your scheme requires this) we will reserve your bike and confirm your order. We’ll then send you an email when we dispatch your bike.

Step 5. 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 employer 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 various options – we recommend you discuss these with your employer or scheme provider

  • Up until recently £1000 was the upper limit (at least for companies without their own consumer credit license).

    However, new legislation has removed the £1000 limit for bikes under the Governments Cycle To Work initiative, so employers can now apply to have no limit on the value of certificates issued to employees! This new limit is available now so your employer can start applying for a higher (or even unlimited) Cycle To Work limit straight away!

    If you want to benefit from this new higher limit, all you need to do is get in touch with your employer or HR department and ask them to apply for a higher limit through their chosen Cycle To Work provider. Then you can apply for a higher value certificate and save on your dream bike!

    Adding funds or ‘topping-up’ – with the new government guidance on scheme limits, it is now no longer possible to ‘add funds’ or ‘top-up’ your voucher to buy a higher value bike. This means that if you are looking for a bike or package worth £1000 or more, you must go through the new process with your employer or scheme provider to request a voucher for the full value.

  • We accept vouchers from Cyclescheme, Cycleplus, OnYourBike, Bike2Work Scheme, SME|HCI and Green Commute Initiative.

  • Any cycle you can use for commuting. It can have two, three or even four wheels. It can be a road bike, E-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
    • Reflective clothing, white front reflectors and spoke reflectors
  • 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%.

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

  • 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.

    We recommend you discuss the options at an early point with your employer or scheme provider. You may have 3 options; firstly, to extend the hire agreement; secondly, to return the cycle and equipment. Thirdly, you may be able to buy the cycle and equipment under a separate agreement and valuation guidelines at the time

  • 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 25% and higher rate taxpayers 39%.