This web page is for use by Surrey County Council staff only.

This company is not endorsed by Surrey County Council. It is important that you understand the details of what is on offer so that you are happy with your choice and are sure that it suits your needs.

By hiring a bike through Cyclescheme Limited under Her Majesty's Revenue and Customs (HMRC) Cycle to Work scheme, you could currently save up to 42% off the cost of a new bicycle.

• Am I eligible?
• When can I apply?
• How does the scheme work
• How do I apply?
• What happens if I leave the council?
• Find out more

Am I eligible?

The scheme is open to all staff working for Surrey County Council. This also includes employees who work in Foundation and Academy schools whose governing body has agreed to join the MyBenefits scheme.

Due to the annual nature of the scheme, it may not be suitable for employees on temporary or fixed term contracts. However, if employment is expected to last for 12 months or more, you may apply. Employees on bank or casual contracts cannot apply.

Employees should also be aware that under HMRC rules to be eligible to join the scheme you must:

• be a UK taxpayer via the PAYE system
• have at least one month's service

When can I apply?

You can apply at anytime throughout the year.

How does the scheme work?

This is a salary sacrifice scheme which means you give up your right to receive part of your pay in return for a non-cash benefit provided by the Council, in this case the benefit is the loan of a bicycle and related equipment. A summary of advice when considering a salary sacrifice is available from HM Revenue & Customs. You pay for the loan of a bicycle and equipment from gross, rather than net, pay – so you make savings on income tax and NI contributions. The Cyclescheme website provides a calculator to help you work out the savings. Exactly how much you save depends on various factors, including your salary i.e. how much tax and National Insurance you pay, other pre-tax deductions and the value of the bicycle you buy. Surrey County Council currently offers the scheme through Cyclescheme Limited, for bicycles and safety accessories up to a maximum value of £1,000 inclusive. After twelve months, Cyclescheme will contact you to discuss transfer options at the end of the hire period detailing 3 options.

How do I apply?

Log into the Cyclescheme website to find out the savings you can make (the "Council" employer code is: 38CA1). Visit a Cyclescheme Partner Shop and get a written quote for the bicycle and safety equipment you wish to obtain through Cyclescheme Ltd. When you have your quote you need to enter your personal details and the bicycle and safety equipment details on Cyclescheme website. Shared Service Centre, Employee Services, will check your eligibility and after eligibility is confirmed. The employee will sign an online Hire Agreement at this time. A secure bike certificate will be sent to your home address, in all this process can take up to between 4 to 6 weeks. Salary sacrifice then commences over the 12 month hire period, commencing from the next available payday.

What happens at the end of the twelve month hire period?

The council transferred the administration processes to Cyclescheme Limited. This means that at the end of your hire period the bikes will automatically be transferred to Cyclescheme who will contact you to discuss three end of hire options.  

The most attractive option for you is to pay a small, refundable deposit (3% or 7% of the certificate value) and continue to use the bicycle for up to 36 months.

At the end of this period, Cyclescheme refund the deposit if you do not wish to keep the bicycle. No further action or payment is required if you wish to keep the bicycle.

The Employment Income Manual updates provide a simplified method for the valuation of bicycles at the end of the hire period in the form of a 'Valuation Table': 

Cyclescheme are pleased to announce a fully compliant Market Value solution to HMRC's latest advice. This has been produced after discussions directly with HMRC and independent Tax experts. (Cyclescheme flowchart to be linked here, once received) 

Other benefits to be made aware of:

• No guarantee of offer of ownership can be given to employees at any point before or during the hire period
• At the end of the initial 12 month hire period, employees in the scheme may be given the option to take ownership of the bicycle or extend the hire period with Cyclescheme. The appropriate Market Value will be calculated using HMRC's Valuation Table
• 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 the extended hire period
• Employees are free to participate in the scheme again once their initial hire period has ended, even if they sign an Extended Use Agreement with Cyclescheme.
• The 'acceptable disposal value percentages' in HMRC's Valuation Table for bikes aged up to 4 years are 3% or 7% inclusive of VAT.

Please see a list of employee Frequently Asked Questions (FAQs) provided by Cyclescheme Ltd. If you have any questions that are not covered in Cyclescheme's list of FAQs, please email info@cyclescheme.co.uk. 

What happens if I leave the council?

Once signed, the Hire Agreement is non-cancellable following a cooling-off period of 7 working days following collection of the goods. This means that if an employee leaves or is made redundant during the hire period they are obliged to pay the remaining salary sacrifice amount in full from their final net pay i.e. without any tax exemptions. For further information please see the Department for Transports Cycle to Work implementation guide.

Unpaid leave

If you take unpaid leave during the twelve-month hire period, Employee Services will suspend payments. When you return to work the remaining payments will be reinstated over the remainder of the hire period. If you decide not to return to work, you will need to contact the Cyclescheme helpdesk. The remaining balance will be deducted from your final net salary (ie. after tax and NI contributions).

Whilst an employee is on unpaid maternity leave the employee remains in possession of the bike and the remaining salary sacrifice deductions will re-commence upon the employees return to work.

Using the bicycle for business travel

In accordance with HMRC rules a bicycle purchased through the scheme should get most of its use for commuter/ business travel journeys, but there is absolutely no obligation to cycle to work every day. During the hire period you cannot claim the 20p per mile allowance.

A cycle purchased through the scheme should get most of its use for commuter journeys, but there is absolutely no obligation to cycle to work every day.

Cycle Training

If you are interested in having training with one of our approved instructors contact call the Surrey County Council's Contact Centre on 03456 009 009 and ask for cycle training. Please note: Charges now apply for all cycle training. The cost will vary according to the type of training, number of trainees and when the training takes place. We will be able to discuss your training options and detail the costs. Alternatively if you want to find your own instructor, perhaps if you live out of the county, the CTC keep a list of accredited cycle instructors by region.

Find out more

For more information about the scheme including frequently asked questions, visit www.cyclescheme.co.uk. Alternatively contact the Cyclescheme Limited helpdesk: info@cyclescheme.co.uk or by phone: 0844 879 5101

For advice contact My helpdesk
by email at myhrhelpdesk@surreycc.gov.uk or internal at MyHR helpdesk
by phone on 020 8541 9000

Disclaimer

Please be aware that this "government sponsored scheme" and is subject to change by HMRC at anytime. You must ensure that you are completely satisfied with the terms and conditions of the scheme before you commit into the contract. All information relating to HMRC is correct at date of publication.