| Employees
- Frequently asked Questions |
| Why
would I join the Pedal2Work scheme? |
| You can save
income tax, VAT and national insurance contributions by having the
bike's retail price removed from your salary before deductions. You
can spread the cost of a new bike over 12 months. |
| Can
I use the bike for private or leisure riding as well as commuting
to work? |
| Yes, as long
as the primary use is to get to work. |
| Who
will the bike belong to? |
| You will be leasing
the bike from your company for 12 months. At the end of that period,
your company can transfer ownership for a nominal fee. |
| Can
I buy any bike I want? |
| Your new bike
must be used for commuting, and therefore suitable for this purpose.
Road bikes, hybrids, mountain bikes, folding bikes, commuting bikes...
these are all fine. Children's bikes are not included. |
| What
accessories can be included in the programme? |
| You can include
safety accessories associated with riding the bike to work. Safety
helmets, reflective wear, security locks etc. are fine. Items such
as energy food or car racks are not allowed. |
| What
does "salary sacrifice" mean? |
|
Salary sacrifice
means giving up part of your salary in exchange for a benefit, in
this case, a bicycle. Salary sacrifice cannot be used if your monthly
payments take your remaining gross salary to below the minimum wage.
|
| Can
I buy a more expensive bike than my voucher amount? |
| Yes. You need
to use your own card or cash to make up the difference when you pick
up the bike. The extra amount will not be part of your salary sacrifice. |
| What
if I want a cheaper bike? |
| The amount printed
on your voucher cannot be changed, so you will still be charged the
same amount every month if you take a cheaper bike. |
| Can
I use my voucher to buy a bike for somebody else? |
| No. The voucher
is not transferable to friends, family, other employees or anybody
else. |
| What
happens if the bike is stolen? |
| South Downs Bikes
recommend insuring your bike with a comprehensive insurance policy.
Your employer may insist you take out an insurance policy when you
take collection of the bike to safeguard yourself. |
| When
do I start paying? |
| Your monthly
salary sacrifice will begin in your next pay packet after you have
collected your bike or had it delivered. |
| Can
I pay off the balance early or pay over a shorter time? |
| No. The salary
sacrifice commitment will run for 12 months. |
| What
happens if I'm off work? |
| If you take maternity
leave, unpaid leave, holiday or sick leave that takes your monthly
salary to below the amount of your salary sacrifice, your employer
will suspend your payments until you are earning again. |
| What
happens if I leave my company? |
| If you leave
the company or retire, your bike becomes a taxable benefit. The balance
remaining on the price of your bike will be deducted from your final
net salary. As these will no longer be part of the salary sacrifice
you will not save the income tax or National Insurance on the remaining
balance. |
| Is
there a minimum and maximum amount that I can spend? |
| The minimum voucher
amount is £250 inc. VAT. The maximum voucher amount is £1,000
inc. VAT, although you can buy bikes and accessories that cost more
than this if you top up the difference yourself when you collect the
bike. |
| Do
I need a voucher for the retail cost, or the cost after the savings? |
| Your voucher
will need to cover the total retail cost (before savings) of your
bike and accessories. |
|
| Important
points to be aware of |
| 1.
Bicycles bought under the Pedal2Work programme must be used primarily
for travelling to and from work, and they must be suitable for that
purpose. |
| 2.
VAT may be reclaimed on bicycles if they are purchased to implement
a green travel plan, reduce car use or increase staff health levels. |
| 3.
Leavers or retirees from your company become responsible for any outstanding
amounts. These are usually subtracted from final salary payments,
and become a taxable benefit. |
| 4.
At the end of the lease period, the employer may transfer title of
the goods to the employee for a nominal fee. |
Income tax, VAT and national insurance contributions savings can add
up to around 50% off the shop floor price of the bike and accessories
(actual savings depend on employees's individual circumstances
and tax rate).