Cycle Scheme

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					                     CYCLESCHEME PROCESS

                  Employee visits a Cyclescheme partner store to
                   get quotation for bike and safety equipment

Employees with internet access,                          Employees with no internet
   enter quotation on-line at:                           access send quotations to
https://myaccount.cyclescheme.                            Cyclescheme for entering                                      on-line

                  Automated email sent to HR Department at York
                    St John to inform them of voucher request

                            HR Department authorises or
                           declines request after checking

                   Cyclescheme Ltd invoice YSJ once purchase

                              YSJ pays Cyclescheme

  Voucher sent to YSJ by                               Hire Agreement sent to employee
      Cyclescheme                                           by YSJ HR Department

                             Employee given voucher for
                           redeeming in participating bike
Cycle to Work Scheme

Frequently Asked Questions

What is the Cycle to Work Scheme?
Cycle to Work is a Department of Transport initiative, its purpose being to encourage
employees to commute to work by bike.

Who is entitled to use Cyclescheme?
Anyone who receives a regular salary can benefit from obtaining a tax-free bike and
accessories (safety equipment).

How does the Scheme work?
Once you have found the bike and equipment you want (from a local partner shop),
the University makes the purchase on your behalf. You then lease the bike and any
equipment you require from the University for a period of 24 months.

Are there eligibility criteria for employees?
So long as you still earn the national minimum wage after the salary deduction has
been made, you should be eligible for the scheme. Please consult HR with any
eligibility queries.

Who actually owns the bike?
The bike and goods remain the property of York St John University until the hire
period finishes (24 months). At this point you will be given the opportunity to buy the
bike at a fair market value (maximum of 2.5%).

What are the benefits for an employee?
You pay monthly through your salary and are exempt from paying income tax and NI
on the deduction. Therefore, you can save up to 40% of the cost of a bike and

Whose responsibility is it to insure the bike?
Yours, even though you are still paying for your bike through salary sacrifice. When
you sign the hire agreement you are agreeing to insure the bike. Household policies
are usually much cheaper than specialist policies for insurance purposes but you
must ensure that the insurer covers the bike for work use and storage away from
your home.

What happens if the bike gets stolen before it's paid for?
It will still be down to you to complete the full payment even if you no longer possess
the bike. It is very important to insure the bike and any goods fitted to the bike, to
safeguard against the losses following theft. You can obtain safety equipment from
Cyclescheme's partnering shops, where you can ask for Home Office-approved 'Sold
Secure' D-locks and cable locks to conform to insurance companies' requirements.
What happens at the end of the hire period?
It's your choice whether you opt to buy the bike at the end of the hire period. If you
choose to become the owner of the goods, you will be offered the opportunity to pay
the Fair Market Value for them from your net salary, equal to around 2.5% of the
original value. If you choose not to buy the bike you will be charged the equivalent of
the Fair Market Value to dispose of the goods, probably to a charity.

What do I do to get a tax free bike for work through Cyclescheme?
   You find a local partner bike shop by using the search facility on the
     Cyclescheme website at
   You visit the shop and choose your ideal package
   The shop will issue you with a quote
   You enter this on-line at
   The quote is authorised by HR and you will be required to sign a hire
     agreement. If HR us unable to authorise the quote you will be contacted.
   Once authorised, Cyclescheme will issue you with a secure voucher
   You collect your bike and equipment
   You need to provide 2 forms of ID to the bike shop – 1 photographic ID and
     one YSJ employee ID (HR will provide this if you don’t have anything)
   You must undertake to insure the bike
   You are responsible for maintaining the bike and equipment in accordance
     with the manufacturers’ instructions

What is the hire and payback period?
Both the hire and payback period for the University is 24 months.

How often does the bike have to be used for work?
There is no requirement for you to cycle to work for a specified number of days
throughout the year and there is no special requirement for you to record your trips.
You can also use the bike for leisure at weekends and on holiday, although a bike
purchased under Cyclescheme should be used for at least part of 50% of the trips
you do to work.

Who is responsible for maintaining the bike?
You are responsible for maintaining the bike for your own use. Your local shop will be
able to advise you about necessary servicing depending on how you use your bike.
They are also likely to give your bike a first free service once you have bedded it in.

What happens if an employee leaves the job before they've finished paying for
the bike?
Under the terms of the Hire Agreement and the Credit Consumer Act, the agreement
to pay your loan is non-cancellable. This means that you will need to settle all
outstanding monies including an assessment of market value before you leave. The
outstanding balances will be deducted from your final net salary payment. Settlement
will be from net pay because once you leave your employer you also leave the bike
scheme and are no longer eligible for tax deductions.
What happens if an employee is made redundant or their contract is terminated?
Employees with sufficient service and who meet certain other conditions may be
entitled to statutory payments on redundancy. If you leave your employer before the
final deduction has been made from your salary you will be obliged to pay the
remaining amount in full, as described in FAQ above.

Will the salary sacrifice affect my pension contributions?
No, your pensionable salary will be the one before salary sacrifice.

This is just a selection of FAQ’s. More questions and answers are available at

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