If you’ve been thinking about getting an e-bike for your daily commute, you’ve probably heard about the Cycle to Work scheme. It’s a great way to make your purchase more affordable while doing your bit for the environment—and your health. But how does it actually work? Don’t worry; we’re here to break it down for you in simple, straightforward terms.
What Is the Cycle to Work Scheme?
The Cycle to Work scheme is a government initiative in the UK designed to encourage employees to cycle to work by making it easier and cheaper to buy a bike. Essentially, it allows you to get a new bike (including e-bikes) and safety equipment through your employer, with the cost being spread out over time and deducted from your salary before tax.
This means you can save up to 42% on the cost of your new bike, depending on your tax bracket. It’s a win-win: you get a shiny new e-bike for less, and you’ll save on commuting costs while getting some exercise.
How Does It Work?
Here’s a step-by-step guide to how the Cycle to Work scheme works:
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Check if Your Employer Is Signed Up: First, find out if your employer is part of the Cycle to Work scheme. Most medium to large employers are, but it’s always good to double-check. If they’re not, you might want to suggest it—it’s beneficial for them too, as it can help with employee wellbeing and reduce the company’s carbon footprint.
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Choose Your E-Bike and Gear: Once you’re sure your employer is on board, it’s time to pick out your e-bike and any necessary accessories, like a helmet, lights, or a lock. At Powered Pedals, we’re here to help you find the perfect e-bike for your needs, whether you’re after something lightweight for zipping through the city or a more robust model for longer rides.
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Get a Quote: After you’ve chosen your bike and gear, we’ll provide you with a quote. You’ll need this to apply for the scheme through your employer.
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Submit Your Application: Next, you’ll fill out an application, either through your employer’s HR department or directly through a Cycle to Work provider, using the quote we provided. Once your application is approved, your employer will issue a voucher for the value of your chosen bike and accessories.
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Redeem Your Voucher: Send your voucher number to us at Powered Pedals, and we’ll exchange it for your new e-bike and any accessories you’ve chosen. Then, you can start enjoying the benefits of e-cycling right away!
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Repay Through Salary Sacrifice: The cost of your bike and accessories will be repaid through a salary sacrifice arrangement. This means your repayments are deducted from your gross salary (before tax and National Insurance), which is where the savings come in. Typically, the repayment period lasts between 12 and 18 months.
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Ownership at the End: After the repayment period, you can choose to extend the hire period, return the bike, or pay a small fee (usually around 7% of the bike’s value) to keep the bike permanently. This part can vary depending on the provider, so it’s worth checking the details with your employer.
Why Choose an E-Bike Through the Scheme?
E-bikes are a fantastic option if you’re looking to commute by bike but want a little help with hills or longer distances. They’re environmentally friendly, cost-effective in the long run, and a great way to stay active. And with the Cycle to Work scheme, getting your hands on an e-bike is more affordable than ever.
At Powered Pedals, we’re passionate about helping more people discover the benefits of e-bikes. Our team is here to guide you through every step of the process, from choosing the right bike to redeeming your Cycle to Work voucher.
Final Thoughts
The Cycle to Work scheme is a brilliant opportunity to invest in an e-bike at a lower cost, making your commute greener, cheaper, and more enjoyable. Whether you’re new to cycling or an experienced rider, we’re here to help you find the perfect e-bike to suit your needs.
If you have any questions about the scheme or need help choosing your new ride, feel free to pop into our store or give us a call. At Powered Pedals, we’re always happy to help you pedal smarter, not harder.
Happy cycling!