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For the Employer
How the scheme works

You loan a bicycle to your staff and in return the employee agrees
to a monthly reduction in their gross salary (a Salary Sacrifice)
for the use of the bicycle during the loan period.

An employee agrees to accept a lower amount of salary in return for a benefit, in this case, a bicycle.

We run the scheme for 12 months, where the employee can take advantage of up to £1000 of benefit. At the end of the term, the employee is offered the option of either buying or returning the bicycle for a nominal payment. The scheme works this way to take advantage of the specific tax legislation within the 1999 Finance Act.

There are two main legislative requirements for you to adhere to when running a scheme:

  1. Implementing an effective Salary Exchange through your Payroll (Governed by Revenue and Customs)

  2. Using compliant documentation to the Consumer Credit Act – (Monitored by Trading Standards)

We offer full guidance for you to implement the scheme and provide a suite of compliant documentation.

We can supply almost all major brands available in the UK through either mail order or through our national network of local bike shops.

You choose when you want your employees to be offered the scheme and it can be run on an ongoing basis or through a pre-defined order window. We give you full support through an extensive marketing campaign during the scheme. Full details of how the scheme works and the effect of the Salary Sacrifice arrangements are included in the brochure so your staff are made aware of any implications specific to the NHS.

During the ordering window, staff complete and return their completed order forms to our Freepost address. We input the orders onto our secure orders system, where they remain until you authorise them.

After authorisation, all bicycles are either picked up from the local bike shop or delivered to staff fully assembled and ‘Ready to Ride’.

The Trust can either purchase the bicycles upfront prior to staff receiving them or have the bicycles funded through a lease that we will set up for you. With the lease option, there is no cost to the employee or the Trust and payments are made following the monthly payroll deductions. In all cases, ownership transfers to the employee at the end of the scheme after the final nominal payment has been made.

Administration is kept to a minimum and the only responsibilities for the Trust are:
- Distributing marketing material that we provide for you.
- Authorising staff orders
- Implementation of payroll deductions.
- Reconciliation and payment of the monthly invoices.

The Service
We will ensure that any scheme is implemented with minimum red tape and disruption to the day-to-day running of the Trust. Our service is pain free, zero cost and includes everything you need to implement a scheme in a structured and co-ordinated manner.

Our service includes:

  • Production of a compliant Brochure and Hire Agreement.
  • Setting up a 0% finance arrangement to fund your scheme if required.
  • Supplying electronic advertising material to distribute to staff.
  • Supplying all bicycles.
  • Providing a National Call Rate Helpline for ordering advice and customer support.
  • Providing advice and guidance on Salary Sacrifice and literature to send to Revenue and Customs.

 

 

 

 

 

 

 

 

 

 

 
Telephone: 0870 609 1114 Fax: 01483 811243 Email: info@nhsbikes.co.uk