How does this save me money?
How much will I save?
How do I find out if my employer is signed up?
If my employer isn’t signed up, how do I get them to do so?
Are there any limits on the size of organisations that can run the scheme?
Can I just get a bike, or can I get accessories too?
Can I buy a second-hand bike through the scheme?
For other questions:

How does this save me money?

The Inland Revenue will allow you to purchase a bike through your employer by what’s called ‘salary sacrifice’. You pay for the bike in 12 (or 18) monthly instalments, which are taken from your wages directly, before they are paid to you. The important bit is that your ‘gross’ wages pay for the bike – i.e. before tax and national insurance contributions are taken off, so you effectively get that amount of tax back from the revenue. If your employer is VAT registered, you can claim the VAT too.

How much will I save?

This depends on (a) how much tax you pay, and (b) whether your employer can claim the VAT back (and whether they pass it on to you). Your employers will save 12.8% employer’s National Insurance contribution, and possibly another 40% off their corporation tax. It’s worked out for you below, depending on your salary:

Total salary under £7,185: you save 10% on PAYE, 11% on National Insurance. So you’ll save 21% plus 17.5% VAT – a maximum of 38.5%
Total salary £7,185 - £38,335: you save 22% on PAYE, 11% on National Insurance. So you’ll save 33% plus 17.5% VAT – a maximum of 50.5%
Total salary over £38,335: you save 40% on PAYE, 11% on National Insurance. So you’ll save 51% plus 17.5% VAT – a maximum of 68.5%

How do I find out if my employer is signed up?

We have a record in the shop of all the local employers signed up, so if you’re not sure who to ask at work, you can ask us. To give us a chance to check, enquiring by email is best – mail@oxfordcycleworkshop.org.uk

If my employer isn’t signed up, how do I get them to do so?

In the end, you can’t force your employer to sign up, so it pays to be a bit clever about persuading them. Overall the company stands to gain, but the people who will actually have to do some extra work are the people who organise payroll (usually HR). In practise, it’s very little extra work, but people are almost always resistant to change. So here are some key points in persuading them:

Emphasise the financial savings to the company. They’ll save 12.8% of the total spent on bikes by their employees, through reduced National Insurance contributions. They can also save 40% of what’s spent on their next corporation tax return. So if you buy a £500 package of bike and accessories, you’ll probably save around £250, and so will they.
Find out if your company has a ‘green travel plan’. If you work in a large company or organisation, the people to ask will probably be either the facilities or HR managers, or even the environment or transport manager if it’s a really big organisation. The green travel plan will probably have stuff in it about encouraging cycling to work, and if so it will strengthen your case with management.
Find a champion, and build some support. The people who already cycle are likely to be keen on this – lots of existing cyclists use this scheme to get that shiny new bike they’ve wanted for ages! If you know of anyone in the senior management who cycles, get them on side. If their salary is over £38,000 then they may stand to save well over half the cost of a new bike – a surprisingly powerful motivator!
Don’t just ask the management/HR team outright. As with any decision-making process you want to influence, if you put yourself in a position to get a simple ‘No’ then it can be a massive own-goal. It’s very hard to convince people to re-examine a question if they’ve already said ‘no’. Once you’ve built some support first, by some of the ideas above, ask for things that no reasonable person can refuse outright – e.g. ask for someone from HR and management to meet with or phone someone to discuss the matter, all the while emphasising the potential benefits to the organisation. Within Oxford Cycle Workshop, Dominic Scholfield has visited Cyclescheme and had some training in the background to the scheme and its practical operation. Call Dominic on 07946 474877 anytime to discuss arranging a meeting – he’ll be happy to come to your employer to answer questions or give a presentation. You could also ask for them to phone managers in other organisations who’ve put the scheme into operation. Again, Dominic can put you in touch with these individuals.

Are there any limits on the size of organisations that can run the scheme?

No – any employer that pays wages and deducts tax through PAYE is eligible, whether they have one employee or hundreds. If you work for a charity that isn’t VAT registered there may be a complication, and you should phone Cyclescheme on 01225 448 933.

Can I just get a bike, or can I get accessories too?

You can buy any accessories you need along with the bike, through the scheme. If you buy your bike from Oxford Cycle Workshop then that can also include on-road cycle training at £20 per hour, and cycle parking (wall anchors or Sheffield stands) installed at your home or work.

Can I buy a second-hand bike through the scheme?

Yes

For other questions:

Check the Cyclescheme website (sometimes a little technical): www.cyclescheme.co.uk/faqs.php
Email or call Dominic: mail@oxfordcycleworkshop.org.uk 07946 474877