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Cycle to Work Policy

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					         CYCLE TO WORK

                        POLICY




VERSION 3
20/04/ 09
ORIGINATOR: NEIL WOOLLACOTT




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About Cycle2Work

UWIC have partnered with Halfords to deliver the Governments Cycle2Work initiative,
in an easily accessible manner that ensures that UWIC and it’s employees can make
the best use of the government’s tax concessions.

Developed in response to the Department of Transport’s scheme to promote healthier
journeys to work and to reduce environmental pollution, UWIC and Halfords have
pioneered the scheme amongst Welsh Universities. Offering both tax and National
Insurance savings to participating UWIC employees, allowing the total cost to be
spread over 12 monthly wage deductions.


Rules of the Scheme.

Under the UWIC scheme the minimum expenditure is £100 and the maximum £1000.
Individuals are not permitted to add their own money to the total amount to increase
the expenditure as this would be viewed as a purchase and not a salary sacrifice.

A maximum of 2 adult bicycles can be purchased per employee, and unfortunately
children’s bicycles are not allowed. Two bicycles are permitted as it helps to facilitate
those employees who wish to cycle to a train station, leaving a bicycle at their
departure station and then using another bicycle from their arrival station. Under the
rules of the scheme you cannot purchase a second bike until you have completed
your first purchase agreement.


Am I eligible to join the scheme?

To qualify for UWIC’s Cycle2Work scheme you will need to be a UWIC employee at
the time that you enter into the cycle scheme. Employees also need to have been
confirmed in post via the probation process before they can be eligible to join this
scheme. Equally, no employee can enter into an agreement if the salary sacrifice
takes their hourly pay rate below the minimum wage.




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     Please consider the following before joining the Cycle2Work scheme.

Election Window.

The election window (period you can purchase in) will run for 4 weeks once a year as
advertised via the website. During this time employees can sign up and select a
“Letter of Collection” (voucher) to cover the total value of the bike and accessories
they wish to purchase. At the end of the election window, Halfords will then issue
participating employees with Letters of Collection. Once you have chosen your value,
completed the hire purchase agreement (send both copies to Payroll, one will be
sent back to you) and received your Letter Of Collection you will not be able to
increase or decrease your limit. If your bike costs less than the value you selected,
your salary will still be reduced as set out in your hire agreement. UWIC recommend
that you fully utilise your Letter of Collection by spending any difference on
accessories.
When deciding on a bike value, consider carefully the amount of your salary that you
can afford to sacrifice each month and the type of bike that will best suit your needs.


Salary Sacrifice Description.

A salary sacrifice happens when an employee gives up the right to receive part of their
cash pay due under their contract of employment. A salary sacrifice is neither a
deduction from salary nor is it a charge on salary, it is when the employee agrees to
accept a lower amount of salary – usually in return for the employer’s agreement to
provide some form of non-cash benefit (in this case the loan of a cycle or cyclist safety
equipment). For a benefit such as a loaned cycle, where there is a specific tax
exemption, the employee can receive the benefit in kind, free of tax and National
Insurance deductions.


Do I own the bike at the end of the scheme?

According to the Department of Transport’s Implementation Guidance, there should be
no automatic entitlement for the employee to take ownership of the cycle and safety
equipment at the end of the loan period. However, at the end of the period, the
employer may choose to give the employee the option to purchase the equipment.
UWIC have chosen to give the employee the option to purchase the equipment for -
£15. If the employee did not wish to keep the bike then this deduction would still be
made in order to cover the cost of disposing of the bike.




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Log-in information.

In order to participate in the scheme and select the bicycle you wish to purchase you
will need to visit the Halfords Cycle2Work website. The address is
www.halfordsc2w.co.uk/employees When you enter this site you will be prompted to
type in a Username and Password. As UWIC operate two separate pay dates we
require two separate passwords, you will be either an academic or support member of
staff. The passwords will be confirmed to all staff via an administrator message or are
available from mhawkins@uwic.ac.uk on confirmation of your name and staff ID
number.



Collecting Your Bicycle.

UWIC employees can redeem their Letter of Collection at any of Halfords 420 stores
against the bicycle and cycling safety equipment of their choice. It is advisable to call
in store (there are 3 in Cardiff) prior to ordering to see the range of cycles, safety
equipment and to confirm current prices.

Halfords special order team are able to source and supply most bicycles commercially
available in the UK (capped at £1000 by UWIC)*. They can be contacted via
telephone number 08450 778850. Your bicycle will be fitted for you in store and built
for you so that it is ready to ride.

* Please note that if you are selecting a more specialist bike it may take a little longer for delivery.



Helmet, Lights and Safety Equipment.

UWIC advise that all participants in this scheme should always wear a helmet when
cycling. If you are worried about how you may look, there are a wide range of helmets
available on today’s market, which are all available from Halfords. The cost of the
helmet and any other accessories can be included within your voucher.

Be Safe Be Seen. Safety and visibility are paramount, particularly on dull days or
riding at night. Reflective clothing, cycle lights, cyc le lock and even flashing pedals can
be included within the voucher, so there are no excuses.


Tax and National Insurance

The amount of the Salary Sacrifice reduction each month will be exempt from Tax and
National Insurance deductions. This would typically result in a saving of around 29%
for a basic rate tax payer and 41% for a higher rate tax payer. E .G. For a £500 loan
the deduction would show on your payslip as a gross amount of £41.66 a month which
reduce your nominal net pay by approximately £29.58 a month (basic rate tax payer).
Therefore receiving a benefit of £41.66 at a cost of £ 29.58.




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Loss or Damage to Your Bicycle.

If the bicycle is lost, damaged or stolen during the repayment period, the onus is still
on the individual to continue paying for it. UWIC can not be held responsible for any
damage, maintenance or warranty issues. Your warranty is with Halfords. UWIC
strongly recommends that you take out cycle insurance or ensure that your bicycle is
covered by an adequate amount on your home contents insurance.

If the employee ceases to be employed by UWIC, any outstanding amounts are to be
deducted from the final salary. If the final salary payment is insufficient to cover the
amount outstanding, the employee must ensure that the balance is repaid prior to their
last working day. Once you have signed the agreeme nt it is binding and cannot be
cancelled, so please consider all eventualities regarding this scheme. Further to this
the bicycle is not permitted to be “resold” during the period of the hire agreement.


UWIC benefits

Joining the Cycle2Work scheme will not make a difference to your UWIC benefits. It
has been agreed that all company benefits such as overtime, redundancy and pay
increases will be calculated on your gross salary before the Cycle2Work salary
sacrifice is deducted.


Pension Schemes

UWIC has confirmed with the Pension scheme providers that employees will continue
paying the same amount of pension as they would have before they joined the
scheme.


Statutory Maternity Pay

Please note that neither UWIC nor Halfords will be able to advise on the impact (if
any) on your Statutory Maternity Pay. Please refer to the Inland Revenue for further
guidance.


Tax Credits.

Please note that neither UWIC nor Halfords will be able to advise you on the impact (if
any) on your Tax Credits. This can only be done by the Inland Revenue and Tax
Credits Helpline.




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Other State Benefits

If you receive other State Benefits, it is advisable to check that these will remain
unaffected by you joining a Cycle2Work scheme.

This Policy

Hopefully this Policy Document will have made the rules of the Cycle2Work scheme
very clear, and will help determine whether it is a good benefit for you.
If you have any queries which you don’t feel have been covered in this document,
please contact the following


Halfords: www.halfordsc2w.co.uk/employees

Telephone: 08450778850

Halfords e-mail: cycle2.work@halfords.co.uk



UWIC contact e-mail:       mhawkins@uwic.ac.uk

Telephone: 02920 416852           Miss Menna Hawkins – Travel Plan Assistant

UWIC Bike User Group:
http://www3.uwic.ac.uk/english/aboutus/campusesandlocations/bug/pages/home.aspx


Department of Transport: www.dft.gov.uk




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