Cycle away with massive savings

Save up to 47%

Why cycle to work?

You’ll have your own reasons for wanting to cycle to work, but there are probably more benefits than you realise. Here are just some of them:
✓ A healthier you – both in mind and body
✓ Reaching your fitness goals more quickly
✓ A happier you as you become healthier and fitter
✓ Enjoying your commute to work so you arrive on time and feeling energised
✓ Becoming more effective in your work
✓ Saving money on fuel and car parking costs

As well as personally benefitting from cycling from work, there are environmental benefits including less congestion and less pollution through lower emissions and reduced noise.

How the scheme works

Getting your new bike is simple and we have produced a step-by-step guide to help you through the process so you know what to expect at each stage of your application. Below are some of the key points.

Its important for you to understand that the Government’s Cycle to Work scheme is based on bicycle hire with no automatic right to ownership at the end of the hire period. You will not own the bike during the hire period. You will be hiring the bike from GCI and we will retain the ownership until we agree otherwise. We will write to you with ownership options at the end of the hire period, ensuring HMRC rules are adhered to. Unlike other scheme providers, we will not charge you a 7% end-of-scheme fee. We want you to make the maximum possible savings.

1. The first step is to choose your new bike and any accessories you might need. We refer to this as the ‘bike package’. The package will obviously contain a bike but you can also include safety equipment, clothing, tools and spares. HMRC rules mean you are not allowed to include GPS or bike computers. Now contact one of our registered bike shops and ask for a quote for the package.

2. The next step is to submit an application. If your organisation is registered with us, you’ll need your GCI Employer Code and submit via the Corporate application page. If you are using our Instant GCI scheme, you won’t need a code and can submit here.

3. When submitting an Instant GCI application, a pro-forma invoice will be emailed to you. This is for a GCI voucher to cover the cost of the package. Please take the pro-forma invoice to your HR department so payment can be made. Without payment, your application will not be processed.

4. When submitting a Corporate GCI application, your request will be sent to your HR department for approval and they will arrange payment for a GCI voucher to cover the cost of the package.

5. When your application is approved and payment received, GCI will process your application and confirm the order with the bike shop. GCI will email you two documents for electronic signature; the Hire Agreement (3 months) and the Salary Sacrifice agreement. Please sign both of them. Until we receive the signed documents, nothing further will happen with your application.

6. Since your employer has paid GCI for the voucher, you’ll need to reimburse them. This done via a salary sacrifice arrangement. Your employer will reduce your gross (before tax) pay by the value of the voucher. This means you won’t pay tax or National Insurance on the amount of salary you sacrifice. Depending on your tax rate, you’ll save either 28%*, 42% or 47% on the cost of the package. We recommend you insure the bike package as even in the event of theft, your salary sacrifice will continue.

7. The salary sacrifice period will vary and you should ask your employer what repayment period is acceptable to them. Common periods are 12 – 24-months but can be as much as 60 months. Remember, the Salary Sacrifice Agreement is between you and your employer and is entirely separate from the Hire Agreement with GCI.

8. When the 3-month Hire Agreement with GCI expires, we will contact you with ownership options. We will recommend that you take the Extended Loan option (5 years and 9 months) to take the bike to 6 years old. At this point, there will be no Benefit-in-Kind tax payable to HMRC. If you want to take ownership before the bike is 6- years old, we will advise your payroll department of the tax payable for your P11D.

9. If you opt for the Extended Loan Agreement, when the bike is 6 years old, we will contact you to arrange the transfer of ownership. This will be a separate agreement and subject to a £1 processing fee. The £1 simply acts as a marker to protect you from any future claim that HMRC may make.

Remember, although GCI retains ownership of the bike during both the Hire and Extended Loan Agreements, in practice the bike is yours to do as you wish from day one and you can enter into additional or new GCI schemes at any time.

Find out how much you can save using our online calculator.

Your bike package

• As mentioned above, your package will, of course, include a bicycle, and by that we mean anything defined as a bicycle under the Road Traffic Act. So that’s a yes to conventional bikes, electric bikes, cargo bikes etc but a no to scooters, mopeds, motorbikes or anything that just isn’t a bicycle.
• Bikes with more than two wheels will normally be allowed, so trikes and cargo bikes are OK. Our registered bike shops can advise you on this.
• You should note that the bike must be from a reputable brand, approved for the UK and, if they are electric, comply with the government’s rules on E-bikes. Again, your local bike shop can help you out on this.
• Accessories and safety equipment can be included in your package and this includes racks, child seats, locks, lights, helmets, and clothing. Don’t go too mad though; HMRC suggest a common-sense approach.
• Dongle which removes any speed restrictions from an e-bike are not allowed because then it’s a moped, not a bicycle. That breaks the rules.
• Whilst you can tailor-make your package, the final decision as whether it’s a suitable package for the scheme is down to Green Commute Initiative.

So, what are you waiting for? Have a chat with your HR department and then get down to your local bike shop to build your package. Cycling to work will take you in the right direction.

• Savings calculator

The Government announced on the 23rd September 2022 that from 6th November 2022, the temporary increase in National Insurance rates will be reversed for the rest of the financial year. Additionally, Employer’s National Insurance Contributions will reduce from 15.05% to 13.8%.

Transfer of ownership cost

Unless you wish to take immediate ownership of the bike, there are no fees to pay once the three month hire period has ended. If you choose to enter into the free of charge extended loan period, once this has expired after five years and nine months, we make a nominal charge of £1 to transfer the ownership title to you. This protects you from any HMRC tax charges. If you choose to take ownership before the bike has reached six years old, you will need to pay HMRC a benefit-in-kind tax based on their Fair Market Values table.

How will the salary sacrifice impact my take home pay?

Your monthly take home pay is also known as your net pay, which is the amount you receive after tax, national insurance and other commitments are deducted from your gross pay. The salary sacrifice amounts are also deducted from your gross pay so you don’t pay tax or NI on the amount.

How long can I have salary sacrifice agreement for?

The salary sacrifice agreement is between the employer and employee and covers the repayment of the voucher cost. This can be for any period longer than three months that both parties are happy with. Common terms are 12, 18, 24 months but it could be for as long as 60 months.

Access to the Cycle to Work Scheme is free for employees and their employers. However, there is a cost to administer the scheme and all scheme providers charge the bike retailers a commission. The amount of commission paid varies greatly between providers. GCI is proud to charge the lowest commission rate in the industry; just 5%. Most retailers will absorb this cost however, some may choose to pass it on to the customer. In this case, the retailer must advise the customer upfront so that it may be added to the cost of the bike package. It may not be charged at the point of collection.

Savings

The amount you save is based upon how much Income Tax and National Insurance payments you make. Tax and National Insurance rates vary from time to time and are different in Scotland. Please contact your payroll department for more information or visit https://www.gov.uk/income-tax-rates.

GCI’s constitution is unique from all other providers and as such it manages the relationship between employers and GCI so that employers don’t need a separate FCA authorisation for Credit Brokering. Its as simple as that.

Unlike others, we don’t have to scaremonger to protect an outdated business. We’re offering a genuine, innovative way for forward-looking organisations to move away from the poor value cycle to work schemes of the past, enabling them to offer their employees a better cycle to work solution. This helps more people to reduce the damage we’re all doing to the environment.

Another unique aspect to GCI is bike safekeeping. This is very important because in all plus £1,000 schemes (the model which GCI pioneered) the provider is the hirer and owner of the bikes. If the hirer were to go bust then any liquidator would be forced to maximise the hirer’s assets for the benefit of creditors and that could jeopardise the bikes your employees are paying for. With many of the High Street names struggling, this should be a real concern.

GCI is the only C2W provider who is specifically set up to ensure your employees will get the bikes they sacrificed their salary for. GCI is a not for profit social enterprise. Its constitution prevents it from taking on debt so it can’t have creditors and can’t go bust. It’s a very similar mechanism to the way a trust fund works. It means you and your employees have peace of mind whatever happens with no unpleasant surprises.

What type of bicycle can I get through the scheme?
You can choose from E-bikes, road or off-road bikes, folders or cargo bikes. If it’s a bicycle under the Road Traffic Act, it qualifiers.