Cycle to Work Scheme

University Of Bristol Cycle to Work Scheme  ( the “Scheme”)

*Please note that the University no longer offers the University’s Internal Cycle to Work Scheme. The old scheme (internal) has ceased to accept new applicants but those who have already joined will carry on under the internal scheme as per their agreement with the University. Please note that it is not possible to transfer between the two schemes (i.e. from the old internal scheme to the new scheme).*

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What is the Cycle to Work Scheme?

The Cycle to Work Schemes allows the University to loan cycles and cyclist equipment (“Cycling Equipment”) to its employees as a tax free benefit. Under the Scheme, you choose the Cycling Equipment; the University then buys it from Cycle Solutions and hires it to you for a 12 month hire period. The rental payments under the hire agreement are paid via a salary sacrifice through your annual salary which is included as part of the hire agreement. At the end of the 12 month initial hire period you then have the following options:

  1. You can give the Cycling Equipment back
  2. You may be able to buy the bicycle at fair market value (see table below)
  3. You can enter an extended hire agreement.

Please note that under the Scheme rules at no point can either the University or Cycle Solutions commit to selling the Cycling Equipment to you.  At the end of the 12 month hire period, the University will sell the Cycling Equipment to Cycle Solutions to manage the end of scheme options. Cycle Solutions may (but are not obliged) to sell the Cycling Equipment to you. The options at the end of the 12 month hire period are set out below.

Please make sure to read the all the information on this page and FAQs  carefully to ensure you are clear on all aspects of the Scheme before you apply to be part of the Scheme.

The scheme is administered by Cycle Solutions, a Cycle to Work provider.

How do I take part?

  1. Check if you are eligible  to take part and the criteria which must be met for the Cycling Equipment you wish to order through the Scheme.
  2. Find and order the Cycling Equipment (max value £1,000) you would like from University of Bristol Cycle Solutions web page(10% discount) or at one of the participating local stores:
  1. If you choose to order your Cycling Equipment from Cycle Solutions you can order in the following ways:
    1. online – http://www.cyclesolutions.co.uk/bristoluni

    2. By telephone on 0845 2799970.

  2. If you choose to order from a local shop then the shop will complete an order form with you and they will email it to Cycle Solutions.
  3. Please note this is classed as intent to order until the eligibility checks have been done by Payroll (see below).
  4. Cycle Solutions will contact you by phone to ensure suitability of order.
  5. You will be sent an email or letter confirming your order with a request to visit the University’s Payroll office (Fourth Floor, North Wing, Senate House) to read, sign and agree to terms & conditions within the hire agreement. NB Please note that it is important that you read all the documentation you receive. The University purchases the Cycling Equipment from Cycle Solutions which allows it to hire it to you, but requires you to repay the University under the terms of the hire agreement by way of salary sacrifice..
  6. Payroll will confirm your eligibility and process your forms.
  7. Once Payroll has processed the forms Cycle Solutions will contact you to organise free delivery to preferred address.

The whole process should take between three to four weeks. Please refer to the FAQs  for a more in depth explanation of what to expect in terms of time frames.

Arrangements at the end of the 12 month loan period

Just prior to the end of the initial 12 month hire period you will be contacted by Cycle Solutions to discuss the three options which are 

HMRC Fair Market Value Table
Age of cycleAcceptable disposal value percentage
  Original price less than £500Original price £500+
12 months 18% 25%
18 months 16% 21%
2 years 13% 17%
3 years 8% 12%
4 years 3% 7%

Please make sure to read the above information and FAQs carefully to ensure you are clear on all aspects of the scheme before you apply to be part of the Scheme.

If you have queries which are not addressed in the FAQs then contact details are included at the bottom of the FAQs.

Costs and savings

To work out roughly what your savings will be over the 12 month salary sacrifice period, you can use the online calculator to work out your savings. Please note this does not take into account any of other salary sacrifices (such as Pension payments) which may slightly change the figures. If you needed a printed version of the calculator results please contact transport-plan@bristol.ac.uk

Worked Example of End of Scheme Options

The University loaned a bicycle (value £800) and accessories (value £100) to John through the scheme with an original value of £900.

If John chooses to return the Cycling Equipment at the end of the 12 months, then there would be no additional payments.

After 12 months, if John would like to buy the Cycling Equipment then Cycle Solutions may choose to sell it to him. If he buys the bike then he would have to pay the fair market value of the Cycling Equipment, 18% -25% the original value of the Cycling Equipment (see the above). As the bicycle and associated equipment cost £900 at the start of the scheme he would pay £225, and he would have saved £63.

If he entered the extended hire agreement for 36 months, he would pay a payment of £63 (7% the original value of the Cycling Equipment). At the end of the hire period Cycle Solutions may wish to sell him the Cycling Equipment.  In which case he would have the choice of buying the Cycling Equipment at fair market value (see above), and Cycle Solutions will keep his payment (£63). He would have saved £225. He also has the choice at the end of the extended hire period of returning the Cycling Equipment in response to which Cycle Solutions would return his payment (£63). 

 *New* University of Bristol Cycle to Work Scheme "the Scheme"*Old* University Cycle to Work Scheme (internal) (No Longer offered)
Choice

Choose from website and at local bicycle stores.  Over 5000 bicycles and 140 brands available online. Delivered direct to preferred address. Bicycles can be ordered at: Bike UK, Bike Workshop and Mud Dock. They are also working on adding 5 more stores that are in outskirts of Bristol. This will ensure a presence in all directions from the University.

You were able to choose a bicycle from any bicycle store. Limited to bicycles costing up to £800 (other schemes allow up to £1,000)

Hire Agreement and End of Scheme Details

1. You can return  the Cycling Equipment

2. You may be able to buy the bicycle at fair market value

3. You can enter an extended hire agreement.

For detail see ‘Arrangements at the end of the 12 month loan period’  section of this web page.

The scheme was limited to12 months. If you wished to keep your bicycle after this period you had to pay 18% the value of your bicycle (if the original price was under £500) or 25% (if the original price was over £500).

Savings made by employee

Typical saving between 39% - 48% on the cost of the bicycle and accessories (this includes a 10% discount) if bought online directly from Cycle Solutions.

Typical savings between 32% - 42% on the cost of the bicycle and accessories from local bicycle stores listed above.

Use their online calculator to see how much you could save.

Low tax & National Insurance savings. Allowed staff to spread the cost over a year.

 

Maximum Value on bicycles and accessories

£1,000.

You won't be able to choose Cycling Equipment  of a higher value on this scheme even if you pay the extra amount outside the scheme.

£800.

You were able to choose a bicycle of a higher value on this scheme if you pay the extra amount outside the scheme.

Waiting period

Between 3 and 4 weeks.

This is subject to chosen Cycle Equipment availability, for example if the Cycle Equipment you wish to order will not be delivered from the manufacturers to Cycle Solutions or the local shop before one month from the date of your order then you may wait longer than the standard 3 - 4 weeks.

Under 2 weeks

Online ordering

Available

Not available

Extra services offered

Offer bespoke scheme website for University of Bristol.

• A free mobile app which allows you to benefit from obtaining a wide range of information.

• Offer expert advice at point of choosing bicycle from Cycle Solutions.

• Students can benefit from a 15% discount if they buy from the online store.

• 15% discount for staff if they buy from the online store outright, i.e. not hiring a bike or accessories as part of the cycle to work scheme, for example if you buy a bicycle for your child. Free safety gift if staff buy through scheme.

None