Employers - Scheme Benefits
No hassle and zero cost to employer!
Offer a tangible, desireable and valuable benefit to staff
Encourage a healthier workforce
Help relieve pressure on corporate parking and traffic congestion
Encourage staff loyalty - Goods remain employer's property until term is over.
Make savings on national insurance contributions
Bikes can be treated as a business asset
Make a contribution to reducing your Company's carbon footprint
Healthy Living..
Cycling is recommended
by the NHS as part of active living.

Look Better...
Cycling uses fat for fuel. Your work journey will help you lose weight.
Employers - Frequently asked Questions
Who does the bike belong to?
It belongs to the company for the 12 or 18 month period of the salary sacrifice(up to employer). At the end of this period, the company may transfer title of the goods.
How much will this cost the company?
Nothing! It really is free. The company is buying the bike, and then leasing it back to the employee until the full amount is recovered. You will even save money by not paying your employer's contributions of the amounts that would have been deducted for national insurance.
Does the company need to apply for dispensation from the Inland Revenue or from HM Customs & Excise to run the Pedal2Work programme?
No. As long as all Pedal2Work forms are completed correctly, there is no need to apply for an official dispensation.
Does my company need to apply for a credit licence?
No. Companies are allowed to run salary sacrifice schemes without a specific credit licence as long as the purchase amount doesn't exceed 1,000. (inc. VAT)
What is a salary sacrifice arrangement and how are savings made?
A salary sacrifice happens when an employee gives up their right to receive part of their pay in return for the employer's agreement to provide some form of non-cash benefit, in this case the loan of a bicycle and related equipment. A summary of the advice from the HM Revenue & Customs is available from their website at www.hmrc.gov.uk/specialist/salary_sacrifice.pdf. The employee is paying back the loan on your goods from gross, rather than net, pay for the hire period - hence allowing them to benefit from income tax and NI relief.
Are there any eligibility criteria for employees?

Yes. The Scheme is open to all full, part-time and contract staff whose term of employment is more than the period of the loan (usually 12 months). Staff must have completed any probabtion periods if applicable.

To take advantage of the tax breaks that result from salary sacrifice please also note employees must:

- be UK taxpayers via the PAYE system
- be over 18 years of age to comply with Consumer Credit Act legislation
- be earning more than the National Minimum Wage after your loan repayment has been deducted.

Can we use the Pedal2Work programme even if we are not VAT registered or exempt from VAT?
You can. There are still great savings to be made, even without being able to reclaim the VAT.
What support will Pedal2Work give when the scheme is running?
Pedal2Work will offer full support for handling your queries, and advice on choice of bike and safety equipment. South Downs Bikes will be your local contact for test riding etc. Once the bike package is purchased South Downs Bikes will also handle servicing and any warranty issues.
 
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.
Feel Better....
Exercising, especially outdoors, boosts your immune system.

Alertness......
Riding to work will help you become more alert, ready to accept the challenges of the day.
Pedal2Work is a division of South Downs Bikes Ltd. With many years of experience in the bike trade they have an excellent reputation for friendly, personal and efficient service. Dealing with bike experts will give you the confidence that you will be purchasing the right package for your needs, something you will really enjoy using.
*Savings are affected by a company’s tax status, finance arrangements and your personal level of taxation. Pedal2Work, South Downs Bikes Ltd, The Forge, 38 High Street, Storrington, RH20 4EE