This benefit is for eligible employees of Bracknell Forest Council.
How it works
You choose a bicycle from one of the approved suppliers that suits you, together with equipment, up to the value of £3,000. You cannot choose a second hand bike through Cyclescheme. You can select electric-assist bikes in the scheme. However, you cannot exceed the £3000 limit. You may be able to buy a custom bike through the scheme.
The council will then buy the bike and equipment you have chosen and hire it back to you. You will get a voucher to enable you to collect the bike from your chosen approved supplier.
The hire period lasts for 4 years, but you pay for it over the first 12 months through a salary sacrifice scheme. You benefit by not paying tax and national insurance contributions on the salary you have sacrificed. Typical savings are 43% but the exact amount depends on your personal tax band. An individual being taxed at the higher rate will save a bit more (around 50%) than someone who pays standard rate tax.
To calculate how much salary you will need to sacrifice, go to the cyclescheme calculator. The employer code is A610F8.
During the hire period you will have sole use of the bike and must maintain it, insure it and store it. When you sign the hire agreement you are agreeing to insure the bike. Please check your household insurance to see if a bicycle is covered under your existing insurance.
You should advise your insurance company that your employer has an interest in the goods to be insured.
The bike and goods remain the property of your employer until the hire period finishes. At the end of the hire period you may have the opportunity to buy the bike at fair market value.
The scheme is open to all full, part-time and contract staff whose term of employment is more than 12 months.
To take advantage of the tax breaks that result from salary sacrifice you need to be:
- a UK taxpayer through the PAYE system
- over 18 years of age to comply with Consumer Credit Act legislation
- earning more than the National Minimum Wage after your loan repayment has been deducted
Join the scheme
To join the scheme:
- visit a participating cycle shop to choose a bike and equipment up to the value of £3,000 – you will get a quote with a unique reference
- enter details of your quote on the Cyclescheme BFC website
- HR will check your eligibility for the scheme
- if you are eligible HR will ask you to sign a hire agreement
- HR will contact you when the voucher for the bike is available
- you return to the bike shop with your voucher and photographic ID to collect the bike
Payment through salary sacrifice
Salary sacrifice is an agreement to waive part of your salary in exchange for a tax free benefit, such as this bike scheme.
Employees benefit from the scheme because tax and national insurance contributions are only calculated after the sacrifice, so on a lesser amount. Salary sacrifice does not affect your Local Government Pension, as contributions are calculated by reference to your salary before any sacrifice. However, state benefits (state pension, statutory sick pay and statutory elements of maternity pay) are calculated on the reduced salary, so employees will want to consider this when deciding whether to take advantage of salary sacrifice. A salary sacrifice will also reduce the weekly pay which may be used to calculate a redundancy payment.
If you are not eligible for cyclescheme, or the bike you wish to have cannot be purchased through cyclescheme, please contact HR@bracknell-forest.gov.uk for alternative options.