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 Halfords Cycle2Work. Employees can select bikes and/or 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/or accessories from Halfords, Tredz or one of the many independent bike shops who are members of the Cycle2Work network.
- Once you know how much you would like to spend, apply online at Cycle2Work
- The University of Edinburgh checks and approves your application
- You receive a Letter of Collection so that you can collect your bike and/or accessories
- You 'hire' the equipment via salary sacrifice – and save 32-47% on the cost of the bike and accessories. You have the option of salary sacrifice for 12 or 18 months.
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%
What can I get?
Employees may spend up to £3,000* on the cost of a new bike and/or accessories (such as a helmet, lights and lock). The scheme is strictly for bikes which will be used for commuting at least 50% of the time. The scheme can be used to get e-bikes, cargo bikes, tricycles and other adaptive bikes. E-scooters are not eligible.
*Applications for values greater than £3,000 are considered and authorised on a case by case basis. Further information can be found on the HR Benefits sharepoint site (link provided in 'More Information')
Bike security considerations
Remember that you can also get bike locks and other accessories through the scheme. The police recommend spending at least 10% of the value of your bike on a good quality D-lock - so bear that in mind when choosing what to buy. Whilst the overall risk of bike theft is relatively low, the potential impact on victims is high. A good quality D-lock will make your bike much more difficult to steal. If you plan to insure your bike - and we recommend that you do - check what level of security your insurance policy requires. Most policies will require the lock to be rated at least "Silver" or "Gold" level by Sold Secure.
Important information to note
Once your Letter of Collection has been issued to you (by email) you have 14 days within which to cancel. It is not possible to cancel your hire agreement beyond this time period. Your salary sacrifice payments will start on the first pay date available after your Letter of Collection has been issued. This is regardless of whether or not you have used your Letter of Collection to get your bike and accessories. Your Letter of Collection is valid for 3 months from the point of issue. You must use your Letter of Collection within this timeframe. Refunds cannot be issued.
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.