To promote healthier journeys to work and to reduce environmental pollution, the 1999 Finance Act introduced an annual tax exemption, which allows employers to loan cycles and cyclists’ safety equipment to employees as a tax-free benefit. The exemption, known as the Cycle to Work Scheme was one of a series of measures introduced under the Government’s Green Transport Plan.
Administration of this scheme can be carried out by your employer or by one of the many companies that offer to act as administrator, the biggest being Cyclescheme. TriiT Sports are affiliated to Most Schemes. These Cycle to Work scheme administrators issue you with a Certificate, once authorised by your employer, that can be exchanged for a bike and any safety equipment at TriiT Sports (up to a value of £1000)
Your employer needs to be registered with one of the above Cycle to Work schemes. They can find out how to do this from information on one of the Cycle to Work Scheme websites Cyclesheme.co.uk
Visit TriiT Sports in Chichester, choose the bike and, if required, safety equipment and get a quotation.
You apply for a Certificate online using the relevant Cycle to Work Scheme website. Your employee will usually sign an online Hire Agreement at this time.
Once approved, a Certificate will be issued to either your employer or directly to you, whichever is requested.
The Certificate is then redeemed at TriiT Sports in exchange for the bike package. Salary sacrifice then commences over the hire period (usually 12 months).
At the end of the hire period the owner of the bike may choose to offer the employee ownership of the bike for a fraction of the full market value.
Please note that although the above procedures apply to the vast majority of schemes, there are some variations which are as a result of the way an employer’s scheme is set up, typical examples would be if they are using a finance company or a benefits provider.