From September 2020, the way to apply for the cycle scheme is changing. To speed up processing time, applications will now be made directly with Cyclescheme.
Save up to 42% on the cost of a bike through our Cycletowork Extra salary exchange scheme.
- The saving you make depends on your tax band
- This benefit is run by Cyclescheme
Further information about cycle facilities at the University, including bike storage locations.
How it works
Through CycletoWork Extra, you can order a Cyclescheme voucher to get a bike and additional safety equipment, worth up to £2,500 in total, through a salary exchange agreement with the University over a 12 month period.
The Cyclescheme works on a salary exchange scheme where you can save up to 42% on the cost of a bike. The savings that you can make will depend on the tax band you are in but you are able to save on both tax and National Insurance by entering into the salary exchange scheme.
There is a minimum spend of £100 and a maximum spend of £2,500 and the University pays initially for your bike and you repay this cost over 12 monthly instalments saving on tax and National Insurance.
Check out the cycle scheme savings calculator for a more detailed breakdown on the savings you could benefit from. You will need the employer code: f7a19 and to check Own your package after 4 years[li]>
How to apply
From 1 September 2000, you will be able to make your application directly with Cyclescheme. Visit the Cyclescheme site for University of York employees and complete your application. You should receive your vouchers within 21 days of making your application.
Once you have made your selection online, this will be processed and sent to the University for approval. Following approval, Cyclescheme will email you asking you to sign up to the terms and conditions of the scheme. Once you've done that your voucher will be emailed to you within the next few days. You then use the voucher to pay for your new bike. You can email it to the shop, or print it out and take it in.
Note: the voucher cannot be exchanged for cash and change cannot be given should the value of the equipment be less than the amount stated on the voucher. The salary exchange will be for a 12 month period starting from the beginning of the month in which you receive the bike voucher.
A salary exchange arrangement constitutes a change to your terms and conditions of employment and you will need to agree to this change by agreeing to the CycletoWork Extra hire and salary exchange agreement, which you complete online. You cannot be issued with a voucher without completing this agreement.
What happens next?
- At the end of the 12 month hire period, the University will transfer ownership of the bike to Cyclescheme. They will give you an option to return the bike, which would be at your own expense.
- Alternatively you can pay a one-off deposit (of either 3% or 7% of the package's original value) and continue to hire the bike (under an Extended Use Agreement with Cyclescheme), free of charge, for a further 36 months until its market value is at its lowest (either 3% or 7%). At which point Cyclescheme can transfer ownership to you at no further cost.
- You can also pay to take ownership of the Cyclescheme package straight away, by making a payment of either 18% or 25% of the bike package's original value. This dramatically reduces your savings, but does transfer ownership immediately to you.
- You must have at least 13 months remaining on your contract of employment from the date you sign up for this benefit
- You cannot contribute personally towards the cost the bike. The terms of the scheme are that the vouchers must be used to purchase the bike outright.
- You cannot get a bike if the cost brings your earnings to less than £8,700 per year or below the National Minimum Wage / National Living Wage
- We strongly recommend that you get your new bike insured. If it is lost, stolen or damaged, you will still have to complete the payments
- The bike should be used for commuting to work, but you can also use it in your leisure time
- In order to access the scheme you must be an employee of the University of York, aged over 18, and be on either a permanent contract or a fixed term contract for a period of 13 months or longer. The salary exchange must not take your pay below either National Minimum Wage or the University's Pay Protection Limit. This is currently £8,700. You may still be able to access the scheme if you are under 18, but you will require a guarantor. If you leave the University or are made redundant before the end of the 12-month payment period, you will pay the University any outstanding balance.
- By signing up to the scheme, you are agreeing to a salary exchange for a 12 month period. You cannot revert to your pre-salary exchange salary by returning the bike.
- If you take a bike through the CycletoWork Extra scheme, it is your responsibility to properly maintain the bike and ensure its roadworthiness.
- At the end of the initial one year hire period, Cyclescheme will contact you to discuss the options available. The most attractive option is to pay a small, refundable deposit known as a "continuation deposit" and continue to use the bicycle for an extended period of up to 36 months. At the end of this period, if you do not wish to keep the bicycle, then Cyclescheme will refund the deposit in full. Alternatively, Cyclescheme will offer you ownership of the bicycle at this point, and no further action or payment will be required if you wish to keep the bicycle. You should note that the continuation deposit is payable directly to Cyclescheme and so cannot be paid through payroll. There are therefore no tax or NI savings on the continuation deposit. If your Cyclescheme voucher was for £500 or less, the continuation deposit is 3% of the value of your voucher. If your Cyclescheme voucher was for more than £500, the continuation deposit is 7% of the value of your voucher.
- During the 12 months when you are paying for the bike, the bike and any related safety and security equipment is owned by the University. During the extended hire period with Cyclescheme, Cyclescheme owns the bike and any related safety equipment. At the end of the extended hire period with Cyclescheme, the bike is owned by you.