Brick Lane Bikes are official partners with many cycle scheme providers such as: Cyclescheme, Bike2Work, NHS cycle scheme, Cycle Plus, Salary Plus, Salary Extras,Halfords Cycle2Work, Enjoy Benefits Cyclescheme, C2W Support, Vivup.
With extremely knowledgable staff we pride ourselves in providing personal, informative & friendly service - helping our customers through all stages of choosing the perfect bike for them. We have a huge variety of bikes to try out and test as well as one of the biggest selections of frames (new and vintage), parts and accessories to be found in a bike shop. Making sure you can create your bespoke dream ride, or just ride away on a great urban commuter.
The possibilities are endless, just pop in and let us help you with the process of getting the most out of your cycle scheme!
How to save 25% to 35% on a bike for work
From start to finish, here’s how cycle scheme works. Tax is complicated; cycle scheme is not. It is all about getting you on a bike, and saving you some money. Getting a bike this way will mean you save between 25% to 35%.
If we could sum it all up in a few lines, they’d be these: "Choose a bike, hire it for a year, then snap it up for a fraction of what it’s worth. It’s like a year-round sale, with interest free credit."
Step 1 - Do your homework
The most important element of switching to a cycle commute, is to spend a bit of time thinking about what you’ll need. Think about how often you’re planning on cycling, what route you’ll take, how far you’ll go and what accessories you’ll need. Thankfully we are experts in this field and can help find the perfect package for you. So, if you do nothing else, pop by our store and have a chat with our experienced sales staff.
Step 2 - Submit your application
This couldn’t be easier. If your employer is already a part of cycle scheme, they’ll have a unique weblink that you’ll need in order to submit your application. If your employer isn’t signed up, then get them on board - it’s free, and they literally need to click a few buttons to get everything moving. On the application page, you’ll be guided through a very simple form which asks for your work details, contact information and the value of the cycle scheme certificate you’re applying for. Hit ‘submit’ and your employer will receive a copy of your application to approve. At this point, you’ll also get a copy of your Hire Agreement.
Step 3 - Collect your cycle scheme package
With your application approved and paid for (by your employer) it’s time to exchange your cycle scheme certificate for your cycle scheme package. Pop by the store and we will get you fitted to your bike and on your way. At this point your salary sacrifice and Hire Agreement will kick in. This means that for the next 12-months you’ll be paying a set amount from your salary each month in exchange for the hire of your cycle scheme package from your employer - this is also where you make your income tax and national insurance savings (32% standard rate, 42% higher rate).
Step 4 - End of Hire and transfer of ownership
When your Hire Agreement finishes, you make one final (small) payment, and you’re done! Sounds confusing? It’s not! Your tax savings happen because your cycle scheme package has been hired from your employer. To retain these savings, a further ‘transfer of ownership’ payment has to take place (or else the tax man will be on your back). For a cycle scheme package under £500 you’ll be paying 3% of the original value, and for a package over £500 you’ll be paying 7%. The bike then remains ‘hired’ for a further 36 months (but with no further monthly payments) until ownership is officially transferred to you at no further cost. This means a worst case scenario of a payment of £70 and saving of at least 25%.
Quick fire questions:
How much will I save with Cyclescheme?
At the very least, you’ll save 25%. If you’re a higher rate taxpayer, you can save up to 35%.
What can I get through the scheme?
Almost any piece of kit you need to cycle to work. The bike (obviously), but also the accessories too - lights, locks, helmet and clothing. If you already have a bike, you can even just apply for the accessories.
How is my salary sacrifice calculated?
Very simply by dividing the total Cyclescheme package price by the length of your Hire Agreement. Usually, this means 12 payments taken from your salary, over a 12-month period.
What’s a Cyclescheme Certificate?
A voucher, coupon, ticket - it’s what you give to the bike shop in exchange for your chosen Cyclescheme package. We send you this by email, see step 3.
I’ve paid for the bike, why don’t I own it?
Simple answer: tax. In order to protect your income tax and national insurance savings, an additional ‘transfer of ownership’ fee needs to be paid. The Government have set out guidelines for how this should work, see step 4 for more details.
How is the transfer of ownership payment calculated?
There is a set percentage applied, depending on the age of your bike package. At 4 years old, the value is set at 3% (for <£500) and 7% (for >£500).
What’s a Hire Agreement?
This is an agreement between you and your employer. It states you will be hiring the equipment from them during the period of your salary sacrifice.