A brand new bike at almost half the
NHS Staff Cycle to work scheme as operated by SME HCI- check with your HR dept as you should be able to purchase a Montague or Swissbike under the Cycle to Work scheme or drop us an email and we provide you with the appropriate information. We also work with scheme adminstrators ONYOURBIKE.
If your employer self adminsters the scheme, it's simply a matter of ordering a bike directly from us.
Please note that bikes supplied under the scheme through SME-HCI or Onyourbike are subject to quotation. The offers on the web site are for online buyers or for employer who self adminster the cycle to work scheme
Employers considering setting up a self admincycle to work scheme should check: -
What is it?
to Work is the official name of the government scheme designed to make bike
ownership financially easier for employees. It can halve the cost of getting a
rationale is that by offering tax benefits on bike buying, it aims to minimise
traffic on our crowded roads, cut back on pollution and improve public health.
scheme first started in 1999 but was known to few. It was rebranded Cycle to
Work last year.
How it works
its simplest, Cycle to Work cuts the price of a new bike in half if you are a
higher rate 40% taxpayer and by just over 40% if you pay income tax at the
basic 22% rate.
If you are a higher rate tax payer for example, and you choose a bike and
accessories worth £500, you enter into a Hire Agreement with your Employer, who
then deducts payments from your gross salary over a 12 month period. This is
known as a salary sacrifice.
What is salary sacrifice?
sacrifice happens when an employee gives up the right
to receive part of their cash pay due under their contract
of employment in return for a non cash benefit, which
in this case is a cycle and any safety equipment needed.
your company buys the bike VAT-free. Secondly, the bike
is paid for over a period of twelve months, with the money
coming directly from your wages. This means two things:
you’re basically getting the bike interest-free
for the length of the term repayments and you are saving
both national insurance and income tax because the payment
comes out before these are calculated and taken.
& accessories cost (including VAT) £500 .00
V.A.T. saving £74 .47
TAX & National Insurance saving £147 .36
12 Monthly repayments (salary sacrifice) £20 .93
Total cost £251 .16
SAVING AROUND 50% OFF RRP £248 .84
above example for a higher rate taxpayer shows savings of over 50%, a standard
rate (22%) taxpayer would pay £285.13, saving around 43%.
the repayments may look higher than you expected and total more than you
expected to save over the course of the year, the savings
calculator is actually pretty accurate. If you calculate your
net pay sacrifice over the term of your repayments, the total is more or less
the same as on the savings
calculator because you’re paying less tax over the
Who does the bike belong to at the
end of the 12 month period?
a nominal sum (usually 5% of retail value) the bike and safety equipment can be
purchased from the Company at the end of the Hire period.
What if I leave before the end of
you leave during the term, any outstanding monies owed should be taken from
your final Net salary, however if this is not sufficient to cover monies owed,
you will be required to pay your employer any outstanding money by cheque /
cash within a specified period.
Is there a price limit that can be
this Initiative the Government has provided a blanket Consumer Credit Licence
to all participating Companies, allowing purchases for any one individual up to
How do I take part in the scheme?
your Employer decides to run a cycle to work scheme, getting a cycle and saving
money couldn’t be easier. All your employer has to do is send us a purchase
order for the cycle of your choice, could it be simpler?
You then sign a written Hire Agreement for 12 months with Your employer
specifying the salary sacrifice to be made. This is regulated by the Consumer
Credit Act 1974, and is non cancellable.
payment has been made by the employer, Montague Bikes
.co.uk will contact you when the cycle is ready to collect.
are then made from your gross salary by your employer
over a 12 month period.
benefit from fitter, more punctual, more wide-awake staff.
Employees benefit from better health and better bikes
because their money goes further.
is much made of the scheme, suggesting that your company must register with
various organizations to run the scheme, this as far as we are concerned not
the case, all you employer must do is accept that they will run the scheme, ie purchase
and pay for the bike, recover the VAT and claim first year or writing down tax allowance
on the bikes each year, it is that simple.
If your employer has opted to use a third party company to run the scheme on their behalf, please note that we do not currently participate in such schemes. These third party run schemes usually issue coupons or certifcates or in some cases require quotations