Cycle to Work Scheme
University of Edinburgh employees can make savings on the cost of a bike and equipment for commuting to work.
The Cycle to Work scheme is designed to help you save money on a new bike to commute to work and to spread the cost of the bike over monthly tax-free instalments through your employer. The scheme can save you 32 - 47% on a bike and accessories.
The University of Edinburgh scheme is provided through Cycle2Work. Employees can select bikes and accessories from over 1,000 independent bike stores, Halfords and Tredz, providing access to over 98% of bike brands.
How it works
- Choose a bike and accessories from Halfords, Tredz or one of the independent bike shops who are members of Cycle2Work
- Once you know how much you would like to spend, apply online at Cycle2Work
- University of Edinburgh approves your application
- You receive a Letter of Collection so that you can collect your bike and accessories
- You 'hire' the equipment via salary sacrifice – and save 32-47% on the cost of the bike and accessories. You will have the option of salary sacrifice for 12 or 18 . The option for 24 months will be available in the near future.
At the end of the hire term Cycle2Work will contact you to discuss your options for ownership of the bike.
You make savings because salary sacrifice reduces your gross pay. This, in turn, reduces the amount of income tax and National Insurance that you pay each month. Savings are dependent on your personal tax code:
- Basic rate tax payer 32%
- Higher rate tax payer 42%
- Additional rate tax payer 47%
Employees may spend up to £3,000 on the cost of a new bike and eligible safety accessories (such as a helmet, lights and lock). The scheme is strictly for the purchase of bikes which will be used for commuting at least 50% of the time. The limit has been raised to £3,000 in recognition of the increasing cost of bikes and the rising popularity of electric bikes.
More information, including eligibility criteria and access to the Cycle2Work online application process is available from the HR Benefits website: https://uoe.sharepoint.com/sites/human-resources/pay-and-reward/SitePages/Cycle2Work(2).aspx
If you have previously joined the University Cycle to Work Scheme via our previous provider, Cyclescheme, and you have completed your 12 month hire agreement and the end of hire arrangements, then you are able to join the scheme again using Cycle2Work.
If you currently have a live hire agreement via our previous provider, Cyclescheme, you will be contacted before your final salary sacrifice payment to advise you that your end of hire arrangements will be administered by Cycle2Work for the University. This means that you will receive an email from Cycle2Work to explain your end of hire options which will include the option to extend your hire at no extra cost, or to purchase the bike at fair market value, or to return the bike.