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Cycle2Work

How does it work?

  • Purchase a bike with a cost reduction of up to 50% (including income tax and VAT savings) as long as it will be used primarily for commuting to work
  • Under the rules of the scheme, two bikes can be purchased.
  • You can choose the type, make and model from your local store - details can be found on the website www.cyclescheme.co.uk
  • A voucher will be provided that covers the total cost of your preferred bike package.
  • Lease the bike for 12 months with payments spread over this period.
  • Employees pay less for this benefit as the VAT savings made by the Firm are being put towards lowering the cost.

Read before you buy

  • If you select this option you will be provided with a Hire Agreement which you must sign and return before you can be provided with your voucher.
  • Try to spend all of the value of the voucher as you will not receive any 'change'.
  • At the end of the lease period (12 months), you may return the bike and any other equipment purchased.
  • Alternatively, you can purchase the equipment for a small nominal value that will reflect the market value (once refurbished) at that time.
  • If, during the period of the lease, you cease employment with Stephenson Harwood, the ownership of the bike will transfer to you with the outstanding deductions being taken from your final net pay.
  • You are responsible for the equipment for the entire period of the lease and should therefore arrange suitable insurance cover and consider a service pack.
  • A Cycle2Work bike can only be selected at the start of the scheme year.

To understand the tax treatment relating to Cycle2Work and to see a worked example of the potential savings, click here.