Cyclists in the UK Figures show that almost ¾  million of the UK work force cycle to work regularly and the mission is for this number to increase to 1 million by 2021 In the UK cycling is the third most popular recreational activity. An estimated 3.1 million people ride a bicycle each month, but only 744,000 out of these were bike commuters that cycle to work.

Obesity rates in the UK are the highest in Europe Obesity rates in the UK are the highest in Europe. Nearly 64% of adults are classed as being overweight or obese Cycling improves the areas of life linked to happiness A bicycle has a less manufacturing footprint compared to a car Bicycles provide mobility for those who may not qualify or afford to drive Average paced cycling (10-11mph average) will burn about 400 calories/per hour A 45-minute cycle every week can make you ‘biologically younger’ by nine years The average distance travelled by car is about 6,6 miles when 4 miles is the average cycle commute

Bike 2 Work Scheme Ltd Bike 2 Work Scheme allows employees to save up to 42% on the cost of bikes & equipment The scheme allows employees a tax exemption whereby they save on income tax & NI contributions by having the cost of the bike deducted from their gross salary Bike 2 Work Scheme administrate and help you to run your scheme free of charge. All your payroll department need to do is deduct the weekly/monthly salary sacrifice from the employees salary - information which will be provided

We are here to help…. Bike 2 Work Scheme will provide all promotional literature to help you to promote the scheme to your Employees Our helpline and dedicated staff are available 7 days per week to answer any queries you or your Employees may have You will be assigned a dedicated Account Manager who will ensure your scheme runs successfully and smoothly Our website contains useful information and also a handy savings calculator We have more than 1,500 Partner Bike Shops all over the UK who will help you choose the perfect bike

How are the savings made? The Employer makes the initial payment for the bike as per the quotation The cost of the bike is then spilt into weekly/monthly instalments and deducted from the Employees gross salary, before any tax or national insurance is deducted In order for the Employee to take advantage of the scheme and the savings available they must enter into a Hire Agreement with their Employer. This provides details of the Employee’s salary sacrifice amount. Bike 2 Work Scheme will provide this document “Salary sacrifice” is where an employee gives up the right to part of their pay due under his or her contract of employment in return for some form of non-cash benefit

Employer Benefits Fitter, healthier and more productive staff Healthy staff are less likely to be absent through stress or illness Savings on employers NI contributions (up to 13.8%) Reduce your business carbon footprint Cycling to work reduces congestion and demand for parking Scheme is an attractive benefit for employees Your company can be registered with Green Achiever and will be listed in the Green Achiever Business Directory

Employee Benefits Save up to 42% on the cost of a new bike and equipment Cost is spread over weekly/monthly interest free payments Save money on travelling costs After sales service from chosen bike shops Reduce your carbon footprint Lose weight and tone up Improve your general health and well-being Improve mental health and help reduce stress levels Look good, feel great, save money and help save the planet!

How It Works…. Any employee wanting to take part firstly visits one of Bike 2 Work Scheme’s Partner Bike Shops, chooses their bike/equipment and obtains a written quotation. The full list of Partner Shops can be found on our website www.bike2workscheme.co.uk Employee registers online using their unique employer reference number and submits the quotation The employer is then notified via e-mail that a quote has been submitted and to Log in to their account to approve or reject it 4. Once approved the Employer will receive a Hire Agreement and Invoice from Bike 2 Work Scheme

How It Works…. Both the Employer and Employee must then sign and keep a copy of the Hire Agreement for their records. Once signed, the Employer then makes payment to Bike 2 Work Scheme as per the invoice Once cleared payment has been received Bike 2 Work Scheme will issue a Voucher which is posted to the Employer for them to pass on to the Employee or e-mailed to the Bike Shop directly (if agreed) The Employee then takes the Voucher to the Bike Shop, along with photographic ID, to collect their bike & equipment 8. The weekly/monthly deductions from the Employee’s pay begins

Gross salary sacrifice Savings Illustration Illustration based on a quotation value of £1,000 (Bike £900, Accessories £100) Lower Rate Tax Payer Higher Rate Tax Payer Income tax saving £200 £400 NI saving £120 £20 Final cost £680 £580 Total saving £320 £420 Percentage saving 32% 42% Gross salary sacrifice £83.33 Net salary sacrifice £56.66 £48.33

Transfer of ownership... In order for an employee to take ownership of the bike/accessories at the end of the agreement, there needs to be a transfer of ownership fee paid. Below is HMRC’s valuation table, used by Bike 2 Work. Age of cycle Acceptable disposal value percentage Original price of bike less than £500 Original price £500 + 1 year 18% 25% 18 months 16% 21% 2 years 13% 17% 3 years 8% 12% 4 years 3% 7% 5 years Negligible 2% 6 years

Transfer of ownership... At the end of the Hire Agreement Bike 2 Work Scheme will take ownership of any Bike/ Equipment and contact the employee to offer them the extended use option. The extended use agreement allows employees to enter into a further 3 year agreement with Bike 2 Work and take advantage of HMRC’s lower valuation figures. When taking advantage of this agreement the employee pays a small refundable deposit to Bike 2 Work (either 3% or 7% depending on the original cost of the bike/equipment) and continues to lease the bike/equipment from Bike 2 Work Scheme for a further 36 months. If at the end the employee decides to keep the bike, Bike 2 Work will retain their deposit. If not, he/she will need to return the bike to Bike 2 Work Scheme and we will arrange a refund of their deposit.

Transfer of ownership... For example: At the end of the 12 month repayment period we would give the employee the option of paying the refundable deposit of £70 (7% of £1000). He/she would lease the bike from Bike 2 Work for a further 3 years. At the end of the extended lease if they decided to keep the bike, we would retain the deposit and ownership of the bike/equipment would transfer to the employee. Age of cycle Acceptable disposal value percentage Original price of bike less than £500 Original price £500 + 1 year 18% 25% 4 years 3% 7%

Great Employers Think Bike2Work Scheme