Cyclescheme

The Cycle To Work Scheme application period is now open all year round. At the beginning of September 2010, there were 89 staff participating in the scheme.

Important: Changes to the market value process

The process for applying and obtaining a bike using the current University of Exeter salary sacrifice arrangement has not changed.  What has changed due to new guidance from the HMRC is how the Market Value of the bike is calculated at the end of the 12 month hire agreement.  The new process can be found on the Cyclescheme website (Please note:  The University has agreed to transfer ownership of equipment to Cyclescheme and so you need to follow the right hand side of the flow chart).

In summary, at the end of the initial 12 month hire period with the University of Exeter, employees may be given the option to take ownership of the bicycle or extend the hire period with Cyclescheme (by another 31 months).  If you wish to purchase the bike at this stage (ie after 12 months) then the Market Value will be calculated using HMRC’s Valuation table.

However, employees who choose to sign a hire agreement with Cyclescheme may be given the option to take ownership of the bicycle at the end of an extended hire period (an additional 31 months).  The ‘acceptable disposal value percentages’ in HMRCs Valuation Table for bikes aged up to 4 years are 3% or 7% inclusive of VAT.  If you decide to extend the hire period with Cyclescheme then you will be asked to pay a one-off payment (a Continuation Deposit) direct to Cyclescheme.  At the end of the extended hire period Cyclescheme will contact you and may offer transfer of ownership or the option to return the bike.  If you wish to transfer ownership then Cyclescheme would retain the Continuation Deposit to cover the transfer of ownership.  See a list of FAQ’s with further information on this process.

The changes are with immediate effect where the initial ‘Hire Period’ ended after 6 August 2010.  See the Maximise your savings flowchart on the cyclescheme website for more details.

Joining the Scheme

The process is simple. You need to obtain a quotation from one of our participating stores to enable you to complete the online application form found below. Once you have been approved to join the scheme a secure voucher will be sent to your home address for you to exchange for your bicycle. If you have any queries please contact Charmayne Jeffreys in Human Resources.

What is the Cycle to Work Scheme?

The University of Exeter has joined up with Cyclescheme for employees of the University to use cycles through a government scheme to encourage people to cycle to work, which saves you income tax and national insurance on the cost of the cycle, and spreads the cost over 12 months. Cyclescheme allows you to redeem a voucher at a large number of local cycle shops in Devon and Cornwall which participate in the scheme. The scheme operates under a 'salary exchange' arrangement which is approved by the government.

The University of Exeter is participating in this scheme as part of its Sustainability Policy, to encourage staff to travel to work by 'green travel', and to improve the range of benefits which are open to our staff.

For more information, click on the links below:

Calculator showing how much you can save and the monthly deductions on your salary

Frequently Asked Questions

Participating shops

Order your Voucher from Cyclescheme

University of Exeter 'Rules'

1. The scheme is only eligible to employees on the University's main payroll. Individuals engaged on a claims basis (including Graduate Teaching Fellows) are not eligible. You can join the scheme as soon as you are on the payroll.

    

2. The maximum value of goods you can order under the scheme (for the cycle and equipment together) is £1000. For Employees on lower incomes, the University may set a lower limit to ensure that the effect of the Cyclescheme salary exchange arrangement (after the application of other salary exchange arrangements, eg Pension Salary Exchange) does not reduce their pay below the National Minimum Wage or the Lower Earnings Limit for National Insurance Contributions.

    

3. You will only be able to order equipment if you also order a cycle.

    

4. The salary exchange arrangement will run for a fixed period of 12 months.

    

5. The arrangement is subject to the standard Cyclescheme hire agreement.

    

6. The cycle remains the property of the University of Exeter during the 12 month period, after which the employee may choose to purchase it for a fair market value. Cyclescheme will notify the employee direct of this option at the end of the 12 month period.

    

7. By participating in this scheme, the employee is agreeing that, in the event that their employment ends for any reason during the 12 month period, then the University can recover the balance from their final monthly salary. Otherwise the employee will be required to repay the balance in full on demand from the University. Please note that the remaining balance will be deducted after the deductionof tax and National Insurance, ie that and that Salary Exchange tax and National Insurance savings will not apply.

    

8. For Employees on lower incomes, the University may provide a bike through an interest free loan rather than through salary exchange to ensure that the effect of the Cyclescheme arrangement (after the application of other salary exchange arrangements, eg Pension Salary Exchange) does not reduce their pay below the National Minimum Wage or the Lower Earnings Limit for National Insurance Contributions.

    

9. Employees who have less than 12 months to run on their current contract of employment (ie until the expiry of a fixed term contract or their contractual date of retirement) are eligible to participate on the understanding that the University can recover the balance from their final monthly salary or otherwise the employee will be required to repay the balance in full on demand from the University. Please note that the remaining balance will be deducted after the deductionof tax and National Insurance, ie that and that Salary Exchange tax and National Insurance savings will not apply. In addition, if the employee wishes to purchase the cycle on the termination of their employment, they will need to pay the fair market value as set by Cyclescheme.

    

10. Employees under the age of 18 wishing to enter the scheme will require an adult to act as their guarantor. Please complete the guarantor formif this is necessary.  

     

11. It is the employee's responsibility to insure the bicycle. If the bicycle is stolen, the employee will still be required to pay the sum of remaining payments on the hire period. Please note that the remaining balance will be deducted after the deduction tax and National Insurance, ie that and that Salary Exchange tax and National Insurance savings will not apply.

Free Cycle Training

Free cycle training is now available to all University staff. Training is provided by a fully Qualified National Standard Cycle Instructor and can be used to improve confidence or provide guidance on riding in and around Exeter. Whether it is getting on a bike for the first time or tackling particularly tricky sections of a journey, the training is tailor made to your needs and suitable for all levels of cyclist. For further information please contact Paul Mouland.

Unicycle

Unicycle is the University's bike user group for staff and students.  Join now by emailing j.jack@ex.ac.uk