Cyclescheme at Brookes

Make savings on the cost of new bikes and related safety and security equipment under an important Government initiative (Green Transport Plan) aimed at getting more people on their bikes to work.

Oxford Brookes University links with a partner called Cyclescheme, which uses its networks to connect staff with local bike retailers. The partnership can offer a deal whereby you can order up to £1,500 of equipment, and pay Brookes back for it over 18 months through a salary sacrifice arrangement. The savings are worthwhile and you will see that, as you pay for your bike through salary sacrifice, you are being charged from your gross salary rather than your net salary. This means you save tax and national insurance contributions on the cost of the goods for the 18 months of the loan. You get the option to become the owner of the bike when the 18 month loan period is complete.

An online video guide to Cyclescheme (linked to Cyclescheme website)

The scheme is a voucher scheme and can be joined at any time. There is a turnaround time of about three weeks between ordering your bike and receiving the voucher to cash in. There are eligibility criteria for applicants to fulfil. The terms and conditions of the hire agreement and effects of salary sacrifice can be read about in the frequently asked questions section.

Here is a whistle stop tour of how the scheme works:

  1. Do your research: Go and discuss your bike requirements with a retailer in the scheme. Get the retailer to price up your goods and record your requirements on a quote. (Please retain your quote for your own record.)
  2. Place your order: place your electronic order here. Please select the 18 month agreement online form as this is the scheme that has been agreed for Oxford Brookes University. This will trigger the whole process.
  3. Wait for your eligibility check: this happens behind the scenes. HR and Payroll check your details to ensure that you fulfil the schemes eligibility criteria.
  4. Receive and accept the Hire Agreement: this will be generated online automatically. Print it off and retain it for your information.
  5. Receive your voucher: This will be sent to you in the internal mail.
  6. Redeem your voucher: You can redeem this against your goods at the shop immediately. (You will start paying for the voucher immediately you receive it, it’s a good idea to collect your bike quickly)

NB. If you are not a computer user, please put your quote form in the internal mail to Liz Drewett in OCSLD, Wheatley Campus, and indicate that you are happy for OCSLD to order on your behalf (phone 5816 if you want to discuss this) (You can also get help with your hire agreement by calling the same number).

 

Equipment

You can order a voucher to buy a bike and related equipment for up to the value of £1,500. If your bike turns out to be more expensive, you can always make up the difference, but you must be aware the extra portion can’t be included in the salary sacrifice arrangement. The arrangement is fixed at 18 months which is the duration of the loan and therefore the salary sacrifice. Equipment includes bike accessories and safety items. There are exception items under the scheme.

Eligibility

You must be able to show that you use your bike for commuting to work. Part journeys also count within this equation. You can use it for leisure cycling as well of course.

Brookes will want to know that you earn enough to reasonably make your loan repayments, and that you have a contract of employment that is long enough to allow you to pay the full sum back. Full and part-time staff can join, so long as they fit the criteria. If you leave before the 18 months is over, you must complete payment for your bike in the way described (see early leavers)

Salary sacrifice

This is a way of paying back for your goods to comply with the Consumer Credit Act. The arrangement yields significant tax savings. You can read about how salary sacrifice works; there is advice there on how your pension and benefits position could be affected by the scheme so please make sure you have looked at the salary sacrifice section and are clear about what you are signing up to.

Arrangements at the end of the 18 month period

You will need to decide at the end of the 18 month loan period if you wish to become the owner of the bike. Your options are:

  1. Cyclescheme offer transfer of ownership to the employee after 18 months, at 16% (below £500) or 21% (above £500) of original value. (Expensive option - see notes on fair market value)
  2. *Cyclescheme offer the employee an extended use period through an 'Extended Use agreement'. This is a cheaper option as it keeps the cost of your final market value payment down to a smaller percentage of its original value (see notes on fair market value)
  3. Return bike to Cyclescheme at end of 18 month loan period.

*If the employee chooses to extend the Hire Period, a continuation deposit is made to Cyclescheme, which is fully refundable on return of the bike. At the end of the 'Extended Use Agreement' Cyclescheme will contact the employee and may offer transfer of ownership or the option to return the bike. The extension reduces the value of the bicycle to a 4 year valuation in HMRC's table, equivalent to 7% of the original certificate value, depending on the bike value being below £500 or £500+.

See End of Hire process video guide (linked to Cyclescheme website).

Items not currently available under the Cyclescheme

The list of items not able to be purchased is:

  • Unicycles
  • Tandems
  • Children's bikes
  • Bikes for partners
  • Turbo trainers
  • Energy food
  • Tri bars or anything that's race specific
  • Carbon Wheels
  • Heart rate monitors
  • GPS Systems
  • Computers (speedos)
  • Car racks
  • Gift vouchers
  • Store credit
  • Maintenance contracts
  • Child trailers / tag a longs (child seats are allowed)

 

 

Updated Jun 2017

CALCULATOR:

    See Cyclescheme Calculator and select show advanced details on the right-hand side of the calculator.
    Enter Oxford Brookes employer code: 5b19. This will show you how much you will save.

CONTACT:

Laura Fortuna (x5756)