Your North Wales Bike Shop

North Wales Cycle to Work Bike Shop

Cycle to Work scheme


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Your North Wales Cycle to Work Bike Shop

The Framed Bicycle Co is your North Wales Cycle to Work Bike Shop. We strongly believe cycling is a lifestyle that can benefit everyone. Luckily the Government boffins agree too and have created the Cycle to Work Initiative as part of their Green Transport Plan. There are many ways to take advantage of this scheme and companies which your employer may have signed up with to do so, rest assured The Framed Bicycle Co is signed up to them all, we’re even as a Halfords Partner Store. So this North Wales Bike shop can help you from sign up to collection.

Cycle to Work enables you to get a bike tax-free, saving over 30% on the cost of a new bicycle, as well as the security and safety equipment to go with it. It’s a brilliant program where everyone wins – employees (that’s you) make big savings on new bikes, employers (the boss) get a healthier, more motivated workforce and we all benefit from less cars on the road.

Joining and operating the scheme is completely free and is easy to administer online through www.cyclescheme.co.uk. The scheme is available to all UK tax payers who pay PAYE. Self-employed workers cannot take part.

You are not limited to any brand of bike or equipment and so you can choose the best for quality and value for money. This results in the best package of bike and safety equipment for you.

How much can I save?

Savings for employees are between 32% for basic rate taxpayers and 42% for high rate taxpayers, but the actual amount depends on the employee’s personal tax band and the way the employer runs their scheme. Typical savings for a basic rate taxpayer on bike packages hired over a 12-month period are:

Retail Price
£250
£500
£750
£1000
Income tax & NI saved
£80
£160
£240
£320
Net monthly payments
£14.17
£28.33
£42.50
£56.67
Total cost of bike package
£170
£340
£510
£680
% saving
32%
32%
32%
32%

How does it work?

Your employer buys the bike and equipment of your choice at full retail price for you to ride to work (up to a value of £1,000) and you ‘hire’ it through a reduction in your gross wages (salary sacrifice) over a period of 12 months. At the end of the ‘hire’ period you have the option to buy the bike from your employer.

You save because repayments are deducted from your gross salary so you pay less income tax and National Insurance.  Employers benefit from worthwhile National Insurance Contribution savings too.

An example

Here’s an example of how the savings work during the hire period, assuming the following:

  • Employee is paid monthly.
  • Employee is a standard rate tax payer requesting a £500 Certificate.
  • The hire period is 12 months.
  • The Employee’s monthly gross salary is £1,200.00 (£14.400 per annum).

So, because the participants pay less income tax and National Insurance contributions, their net salary reduction is less than the gross salary reduction, and this is how savings are achieved.

In this example, the employee makes a £41.66 contribution to the employer, but it only costs them £28.33, resulting in a saving of £13.33 per month.

A payslip example
Normal Salary
Amended Salary
Monthly Gross Salary
£1,200.00
£1,200.00
Bike value including VAT
£500.00
Gross salary sacrifice total
£500.00
Monthly gross salary sacrifice
(£500/12 months)
£41.66
Monthly gross salary inc. salary sacrifice
£1,200.00
£1,158.34
Monthly NIC contribution (12%)
£144.00
£139.00
Monthly income tax contribution (20%)
£240.00
£231.67
Net Salary
£816.00
£787.67
Monthly net salary reduction
(£816.00 minus £787.67)
£28.33
Monthly saving
(£41.66 minus £28.33)
£13.33

End of hire period

At the end of the 12 month hire period, Cyclescheme take on all further administration and ensure ownership can be transferred from your employer to you at a fraction of the bike’s original cost with an Extended Use Agreement, approved by HMRC.

You pay a small, one-off, refundable deposit (3% or 7%* of the equipment value) and continue to use the bicycle for an extended period of 36 months. Monthly payments during this period are zero.

At the end of this period, if you don’t want to keep the bicycle, it can be sent back to Cyclescheme and the deposit will be refunded in full. No further action or payment will be required if you wish to keep the bike. Cyclescheme retain the deposit, and confirm you as the owner of the bike.

* The lower figure is for a Certificate value of less than £500 and the higher one for a Certificate value of £500 or more. These figures include VAT.

How to get your cycle

1. Sign up & sign in

To get a bike through Cyclescheme, your employer needs to be signed up to the scheme.

Invite them to join or direct them to www.cyclescheme.co.uk.

You can also request the Cyclescheme PDF brochure here with full details of how the scheme works.

2. Decide on a ride

Pay us a visit and we’ll sort out the best ride for your needs. We’re here because we love cycling and we want you to get spinning too. We’ll talk you through what sort of bike is best for you, and provide you with a written quote for your new ride.

Don’t forget that you can also get your cycle security and safety equipment at the same time.

3. Seal the deal

Go to your employer’s unique Cyclescheme web address to request your chosen package. Cyclescheme will ask your employer to approve your request and then send them an invoice for your bike. A hire agreement will also be sent to you to sign. Once the bike is paid for by your employer, Cyclescheme will send your printed certificate. Bring the certificate to us and exchange for your new bike and equipment.

Cyclescheme FAQs

Cyclescheme provides the most admin-friendly scheme to employers of all sizes wishing to set up a Cycle to Work Scheme benefit for their employees.

  • Completely free of charge service to employers and their employees.
  • Free access to a secure, online certificate processing site.
  • Automation of scheme processes that minimise administration, allowing employers more time to look after their business.
  • Provision of free of charge promotional material including posters, leaflets, Cycle Commuter Magazine, and a host of electronic communications including a monthly newsletter.
  • Knowledgeable and friendly Account Management and Helpdesk teams dedicated to helping employers and employees through the entire lifecycle of the scheme.
  • Peace of mind that the scheme adheres to HMRC, Department for Transport (DfT) and Office of Fair Trading (OFT) Cycle to Work guidelines.

Any size employer from any sector can partner with Cyclescheme. Eligible employees must receive salary via the PAYE system.  There is no credit check for employees wishing to participate, and Under 18s can join the scheme if their guardian signs a guarantor agreement.

Typical savings for employees are between 32% for basic rate taxpayers and 42% for high rate taxpayers, but the actual amount depends on the employee’s personal tax band and the way the employer runs their scheme. If the employer uses external finance (i.e. borrows the money to buy the bikes from an outside agent) then savings will be approximately 5% lower. Employers can typically save 13.8% of the total value of salary sacrifice, due to reductions in Employers’ National Insurance Contributions (NICs) due.

The Office of Fair Trading (OFT) has issued a group consumer credit licence to cover Employers implementing Cycle to Work Schemes that are limited at £1000 inc. VAT per Certificate.

The bike and equipment remain the property of the employer throughout the hire period, unless the employer uses a finance company to fund the bikes;  in this case the finance company or funding bank will own the bikes.

It is the employee’s responsibility to maintain the bike. We will be able to advise about maintenance and servicing depending on how the bike is used. If the bike is stolen, as long as the employee replaces the bike and continues to use it mainly for commuting purposes, the employer can continue to take the salary sacrifice reductions from GROSS salary.  This means the participant can still take advantage of the income tax and National Insurance Contribution (NIC) savings. Cyclescheme strongly recommend that scheme participants insure their bicycle.

Employees should use the bike mainly for commuting to and, if relevant, between work places (at least 50% of the bike’s use should be for work purposes). However, the bike can also be used for non-work purposes and there is no need for employers to monitor individual usage or for employees to keep a mileage log. Please note that employees cannot claim business mileage allowance with a bike that is being hired to them by their employer.

Once signed, the Hire Agreement is non-cancellable following a cooling-off period of 14 calendar days following collection/receipt of the equipment. This means that if an employee leaves or is made redundant from their employment during the hire period they are obliged to pay the remaining salary sacrifice amount in full from net pay i.e. without any tax exemptions.

Yes. Your Cyclescheme application can include safety equipment and accessories without the need to include a bike in your request.

Unfortunately if you are part-way through your initial Hire Period, you are unable to place another Certificate request until the current one has ended. If you are in an ‘Extended Use Agreement’ with Cyclescheme (as part of the End of Hire Process), you are able to request another Certificate.

Yes. If you are submitting a safety equipment-only request there is a £100 minimum.

To submit a safety equipment-only request, please follow Cyclescheme’s guide here

Allowable safety equipment includes:
Cycle helmets
Bells
Lights, including dynamo packs
Mirrors and mudguards to ensure riders visibility is not impaired
Cycle clips and dress guards
Panniers, luggage carriers and straps to allow luggage to be safely carried
Child safety seats
Locks and chains to ensure cycle can be safely secured
Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs
Reflective clothing along with white front reflectors and spoke reflectors

This list is by no means exhaustive, so if you do have questions about what equipment you can obtain please contact the Cyclescheme Help Desk.

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