Youe employer buys a voucher which entitles you to the hire of a bike of your choice directly from us. Because we’re authorised by the FCA there is no £1,000 limit.
You repay the cost of the voucher by sacrificing a part of your gross (before tax & NI) salary. This means you save the tax and NI that you would pay if you bought the bike from your net (after tax) pay. Your employer also saves 13.8% employer’s NI. So it’s worth them doing it.
At the end of the hire period we can’t give you the bike because you would incur a tax liability. So we make you a free of charge loan of the bike for four years. After which you can buy the bike from us for £1.
At the end of the initial hire period, we also appoint you as our agent to dispose of the bike to a third party of your choosing. If you do this you need to pay us £1 to transfer the title to that third party.
We manage all the end of scheme arrangements so there is nothing for your employer to do and best of all no end of scheme sting as there is on old fashioned Cycle to Work schemes.