Cycle to Work

Cycle to Work Scheme

What is the cycle to work scheme?

The cycle to work scheme is an employee benefit that enables employees who are UK taxpayers with a participating employer to save money on the cost of a bike and/or cycling accessories.

To find out more, read on or visit https://app.workplaceextras.com/employee-register/8d4e27 and click on ‘I’m an Employee’, then search for Hotel Chocolat Limited and click on ‘Let’s Get Started’, then ‘How It Works’.

How does it work?

In theory, we buy a bike for you to ride to work on, and you hire it from us through a salary sacrifice, allowing you to save money by not paying tax and national insurance contributions on the monthly fee.

It’s tax efficient, good for your physical & mental wellbeing, and kind to the planet – what’s not to love?!

Do I have to ride to work every day?

Not every day, no! At least 50% of the use should be for work purposes, so if you used the bike 10 times a year, 5 of those journeys must be work related.

You can use the bike for your full journey to & from work, or part journeys. If you don’t live within cycling distance of your workplace, why not consider cycling to the station on some days? The bike and accessories can also be used for non-work/leisure purposes.

Who can join?

You can participate in the scheme if your earnings are in excess of the National Living Wage (NLW) or the National Minimum Wage (NMW) after the salary sacrifice reduces your gross pay.

You must have completed your probationary period successfully and be 16 or over. If you are under 18 you can join the scheme if your guardian signs a guarantor agreement.

How much will I save?

You can typically save between 32-42% each month on the salary sacrifice amount, depending on how much you earn.

Cycle to Work Scheme

If you take into account the ownership fee at the end of the Hire Period, this brings the overall saving down a bit (for more details see below).

Use the Cyclescheme calculator to see how much you could save.

And don’t forget, on top of your Cyclescheme savings you’ll be saving on fuel by swapping your car for a bike.

What can I get?

Pick a package from just a bike, a bike and accessories or just accessories.

Choose from Bikes, e-Bikes, cycle clothing, tyres, components, helmets, mudguards, locks, lights, frames, child seats, bags, trailers; basically, any items that are going to get you and you bike to work, warm, safe & secure.

The following items are excluded; GPS ride trackers and navigation devices, bike racks for cars, cameras, turbo trainers or rollers, gift cards, nutritional products, power meters, headphones, kid’s bikes.

Where can I shop?

You can choose to shop at any of cycle schemes 2,000+ local or online retailers nationwide. Shop in-store, or online, even click and collect. Check out the links below:

How much can I spend?

How much can you afford? Use the calculator to help work it out. There’s no minimum spend. You can save on a cycle to work package of up to £2,000 in total for the package.

How do I get started?

Once you have a budget in mind, use the retail finder on the Cyclescheme webpage or the links above to select a local store or online retailer to shop with.

It helps to know in advance which bike and accessories you want. If you want, you can decide on your retailer after you’ve applied but you need to know the package you want to choose and the value of certificate to apply for.

When you’re ready to apply

Visit https://app.workplaceextras.com/employee-register/8d4e27 then  follow the prompts to enter all the information requested about yourself and your package to request a certificate.

Cycle to Work Scheme

What happens next?

Your application will be reviewed to ensure you’re eligible. If you are, we will raise a purchase order to pay the Cyclescheme invoice for the certificate value you have requested. Once Cyclescheme has been paid, they will issue your e-Certificate for you to exchange with the retailer for your chosen bike and/or accessories.

Your salary sacrifice will start in the next pay following the issue of your e-Certificate.

What happens if I leave the Company before I’ve finished paying for the bike?

If you leave your employment before the end of the Hire Period, for any reason (including redundancy), any outstanding salary sacrifice repayments will be deducted from your NET rather than GROSS pay, i.e. without any further tax exemptions.

This is because you will no longer be riding your bike to your original workplace, meaning you are no longer eligible for the tax saving.

What happens at the end of the hire period?

After 12 months we will have recovered from your pay the upfront cost we paid for the bike, and your salary sacrifice will stop (unless you missed any months).

You must pay a fee at the end of the hire period if you wish to keep your bike and Cyclescheme will send you your ownership options.

Why do I have to pay an ownership fee?

The fee enables you to keep your bike without incurring any benefit-in-kind tax liability.

To benefit from the tax and NI savings, the Hire Agreement you enter into with your employer must be for the hire of the equipment only. If the agreement allows for ownership to pass directly to you automatically it would be classed as a Hire Purchase Agreement, and a tax exemption would not be available, meaning no savings can be made.

To avoid you Cyclescheme package becoming taxable, any offer of ownership must be conducted as a separate transaction at the end of your Hire Period.

The fee to take ownership of the bike after the Hire Period varies depending on the option you choose. Check out the ownership options here.