University of Bristol staff can make savings on the cost of a new bike by taking advantage of a Government initiative aimed at increasing the number of people cycling to work.
Please read the following information carefully. If you are eligible and would like to apply, download the terms and conditions and application form at the bottom of the page.
The only condition of the Government legislation is that you plan to mainly use the bike for commuting to work, but you can use it for leisure cycling too. You are free to select the cycle and cycle safety accessories of your choice, from the cycle supplier of your choice.
You can use the scheme to obtain a just bicycle or a bike plus cycling accessories. The total amount available is a maximum of £800 (inc.VAT) and a minimum of £100. You can choose a bike which is more expensive than £800 but the difference will be payable by you at the outset and will not be TAX and NI free.
Full-time and part-time employees (both weekly and monthly paid) who are subject to UK Income Tax and who have been in continuous employment of The University of Bristol are eligible to make an application under this scheme.
Any staff member under the age of 18 will need to have a guarantor before they will be able to enter into the scheme.
Any staff member interested in the scheme, who would find their rate of pay dropping below national minimum wage, would be provided with a ‘pool bike’ to use to commute to work.
Full details are available in the terms and conditions, which you should download and read before making an application.
Download the scheme terms and conditions and an application form from the bottom of this page, or you can request the information by telephoning the payroll office (internal 46374, or external 0117 954 6374).
Visit your chosen cycle retailer. Once you've selected bike and accessories you want (remembering that the total loan available is limited to £800 inc. VAT) the cycle supplier needs to give you a detailed written quotation of all of the equipment you could like to obtain through the scheme. Submit this, together with the completed application form, to the University payroll office.
The payroll department will ask you to visit their office as they need to witness you signing a hire agreement regulated by the Consumer Credit Act 1974. You will be told the amount of salary sacrifice you are agreeing to. Once all the paperwork is in place the University will issue a cheque made payable to your cycle supplier - take this with you when you go to collect the new bike / accessories.
You can start using the bike straight away and salary sacrifice deductions will begin the payday immediately after you are given the cheque. These will continue for the agreed 12 month term.
Patrick chooses a cycle costing £600 and various accessories including a cycle helmet, top-of-the range lock, reflective waterproof jacket and some lights. The total value of his selection is £800 (inc VAT), which is the maximum he is allowed under the scheme.
Patrick is a basic-rate tax payer, so the savings look like this;
| Total value of equipment (inc. VAT) |
£800.00 |
| Monthly reduction in Patrick's gross pay over 12 months |
£66.67 |
| Less Tax (20%) and National Insurance (12%) contributions |
£21.33 |
| Net cost deducted from Patrick's salary each month |
£45.34 |
| Net cost over 12 months |
£544.08 |
| Percentage saving |
32% |
| Overall saving |
£255.92 |
At the end of the 12 month period Patrick accepts the University's offer to sell him the cycle and safety accessories using the HMRC Valuation Table. He makes an additional payment from his net salary. This example is indicative only, the tax and NI saving per employee is dependent on individual tax and NI circumstances.
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