How does the process work for TAX free bikes?

  • Your employer needs to be registered with a Cycle to Work scheme we work with.

    At Chaineys Cycles we deal with Green Commute Initiative, Cyclescheme and bike2work.

    Please follow the links above to see fully how each scheme can work for you.

Green Commute Initiative is the industry-leading and award-winning cycle-to-work scheme with no

spend limits and no ownership fees. You can save from 33.25-48.25% (depending on your tax rate).

Pay monthly through salary sacrifice with no added interest with salary sacrifice periods ranging from 3

to 60 months. Get any type of cycle through GCI and help reduce congestion and pollution whilst

improving your health, fitness and mental wellbeing. When more people cycle for short journeys, everyone wins.

Green Commute Initiative savings calculator: Green Commute Initiative savings calculator

Cyclescheme.co.uk useful information on how it works:

  • Cycle to work operates as a 'salary sacrifice' employee benefit. This means that you agree to give up part of your salary in exchange for a benefit – in this instance the benefit is a bike and/or accessories. The salary sacrifice is taken from your gross salary (before tax) which means that you will pay less Income Tax and National insurance.

  • An ownership fee is a cost you must pay at the end of your hire period if you wish to keep your bike. The fee enables you to retain the bike whilst avoiding any benefit-in-kind liability.

  • Cyclescheme strongly recommends that all participants that wish to keep their bike and/or accessories packages choose the 'Own it later' option (as it's the cheapest).

There are 3 options to choose from, these are detailed below:

  • 1: Own it later - You pay a small refundable deposit (either 3% or 7% of your certificate value) and continue to use the equipment for 3 years. No other payments (whatsoever) are required during this time. At the end of the 'Own it later' period, no further action or payment is required if you wish to keep the equipment - we simply retain your deposit and transfer ownership to you. Cyclescheme refunds the deposit if you do not wish to keep the equipment.

  • Ownership doesn't have to be expensive. Cyclescheme always recommends you choose our 'Own it later' agreement - this ensures fantastic end-to-end savings of at least 25-39%.

  • 2. Own it now - Take ownership of your package by paying Cyclescheme the market value (e.g. for a one-year-old package this would be 18% or 25% of the Certificate value in accordance with HMRC requirements).

  • . Return - Return the package to Cyclescheme at your own cost and pay no ownership fee.

  • Cyclescheme will contact you with your ownership options at the end of yourHire Period. This is usually 12 months from the point you received your Certificate used to collect your bike.

  • Cyclescheme savings calculator: Cyclescheme savings calculator