Cyclescheme presents a positive solution for Cycle to Work participants and employers








Personnel Today Smart Buyer
Personnel Today’s Smart Buyer provides expert guidance on cycle-to-work schemes…







































































































RESEARCHING CYCLE TO WORK

Cycling to work: an introduction for employers
Ten reasons why employers should have a cycle-to-work scheme
Ten reasons why employers might apply the brakes
Environmental benefits of cycle-to-work schemes
Workplace parking levies: another reason for cycling to work?
Frequently asked questions about cycle-to-work schemes
   
CYCLE-TO-WORK SUPPLIERS
Who are the main cycle-to-work scheme suppliers in the UK?

 

P&MM: Cycle2Work information sheet 
P&MM: Cycle Plus information sheet 
   
IMPLEMENTING A SCHEME
Implementing a cycle-to-work scheme
Fitter, happier, more productive: healthier staff and better engagement
Official Cycle to Work Implementation Guidance (DfT)
Legal Q&A: Cycle-to-work schemes (AVAILABLE NOW)
   
ARE YOU AN EMPLOYEE?
Cycle to work for employees
   
GOVERNMENT ADVICE
HM Revenue & Customs: What is salary sacrifice?
Office of Fair Trading: Consumer credit licences for employers implementing cycle-to-work schemes
Department for Transport: Cycle to Work implementation guidance
   



Personnel Today Smart Buyer: All Cycle to Work content

The Cyclescheme solution, which has been produced after discussions directly with HMRC and independent Tax experts, alleviates the administrative burden for collection of Market Values on cycles at the end of the loan period from employers. It also means employees can avoid P11D charges by opting for an extended hire period with
Cyclescheme.

Cyclescheme launches this new Market Value process in response to the August 2010 HMRC Employment Income Manual (EIM) updates which provide a simplified method for the valuation of cycles at the end of the hire period.

The Cyclescheme solution is based on three principles:

1. Full compliance with current HMRC guidance;
2. Minimising payroll and HR administration for employers;
3. Maintaining the attractiveness of the scheme for employees.

Through the Cyclescheme solution, at the end of the initial 12 month hire period with the employer, participants may be given the option to take ownership of the bicycle or extend the hire period with Cyclescheme.

The appropriate Market Value will be calculated using HMRC’s Valuation Table at this time. Employees who choose to sign a
hire agreement with Cyclescheme may be given the option to take ownership of the bicycle at the end of the extended hire period.

Benefits to employees:



  • Employees have continued use of the Bicycle for a period of up to four years without transferring ownership;
  •  Extending the ‘Hire Period’ reduces the value of the Bicycle in line with the four year valuations in HMRC’s table of 3% and 7% including VAT;
  • Avoidance of P11D charges to employees after the extended hire period;
  • Peace of mind that the process is compliant with HMRC guidance and the
    Valuation Table;
  • Employees can participate in the scheme again once their initial hire period has ended, even if they extend the hire period with Cyclescheme. Most initial hire periods are 12 or 18 months long.

Benefits to the employer:



  • Minimise HR administration and duty of care responsibilities for the provision of the Bicycle;
  • They recover 100% of the initial purchase cost of the equipment in the first 12 months;
  • Avoid P11D charges to their Employees by transferring the asset to Cyclescheme at the end of the initial 12 month hire period;
  • Cyclescheme handles the administrative burden of Market Value;
  • Peace of mind that the process is compliant with HMRC guidance, as it adheres to the published Valuation Table, removing the risk of future investigation by HMRC.

Cyclescheme Director Richard Grigsby commented: “Cyclescheme remains committed to supporting the Cycle to Work initiative through local, independent bike dealers and the community they are a part of.

“We are obviously excited about the implementation of this new process and by maintaining the scheme’s attractiveness to employees we are confident that the scheme will continue to grow. Our new process enhances what is an excellent employee benefit; a benefit that will continue to drive business to our partner cycle stores, and engage employees with three of the Government’s key initiatives, namely CO2 emission reductions, congestion reduction and healthy living.”

Initial response from our client base has been extremely positive, with many of our existing clients collecting their own Market Values, handing the end of hire administration
over to Cyclescheme. One of our longstanding clients has described the process as “a very neat, workable and compliant solution for both existing contracts and future entrants to the scheme”.

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