CONTACT
Peter Newlands
Telephone:
Day 01983 827100
Evg 01983 297005
Mobile 07887 801407
email:
islandbikes at newseas.co.uk
www.newseas.co.uk
Island Bikes are Premier Dealers for the acclaimed Orange bike range - designed &
built in the UK since 1988
Island Bikes are also specialists in the cycle to work scheme- we help you save up
to 50% on the cost of your new bike and safety equipment!
FAQ
What's in it for me?
You can save income tax, VAT and national insurance contributions by having the bike's retail price removed from your salary before deductions. You can spread the cost of a new bike over 12 months.
Who does the bike belong to?
You will be leasing the bike from your company for 12 months. At the end of that period, your company may transfer ownership at a fair market value.
What does "salary sacrifice" mean?
Salary sacrifice means giving up part of your salary in exchange for a benefit, in this case, a bicycle. Salary sacrifice cannot be used if your monthly payments take your remaining gross salary to below the minimum wage.
What bikes can or can't I buy?
Your new bike must be used for commuting, and therefore suitable for this purpose. Road bikes, hybrid bikes, mountain bikes, folding bikes and commuting bikes are all fine. Children's bikes are not available via Cycle2Work. Any brand of bike, and sale bikes can be purchased
Can I use the bike for leisure riding as well as commuting?
Yes, as long as the primary use is to get to work.
Can I purchase accessories only?
No, the rules set by the DfT say that you must include a bicycle under this scheme.
What accessories can I include?
You can include safety accessories associated with riding the bike to work, so a
helmet, reflective wear etc. is fine. Non-
What if I want a cheaper bike?
The amount printed on your voucher cannot be changed, so you will still be charged the same amount every month if you take a cheaper bike.
Can I use my voucher to buy a bike for somebody else?
No. The voucher is not transferable to friends, family, other employees or anybody else.
What happens if the bike is stolen?
Island Bikes offer a comprehensive insurance policy, which can be purchased from our store or mail order service. We highly recommend an insurance policy is taken out when you take collection of the bike.
When do I start paying?
Your monthly salary sacrifice will normally begin your next pay packet after you have collected your bike or had it delivered. Check with your own payroll department or HR for confirmation.
Can I pay off the balance early or pay over a shorter time?
No. The commitment will run for 12 months.
What happens if I'm off work?
If you take maternity leave, unpaid leave, holiday or sick leave that takes your monthly salary to below the amount of your salary sacrifice, your employer will suspend your payments until you are earning again.
What happens if I leave my company?
If you leave the company or retire, your bike becomes a taxable benefit. The balance remaining on the price of your bike will be deducted from your final net salary. As these will no longer be part of the salary sacrifice you will not save the income tax or National Insurance on the remaining balance.
Is there a minimum and maximum amount that I can spend?
The minimum voucher amount is £250, the maximum voucher amount is £1000*.
Do I need a voucher for the retail cost, or the cost after the savings?
Your voucher will need to cover the total retail cost (before savings) of your bike and accessories.
Employer's Questions
Who does the bike belong to?
It belongs to the company for the 12-
How much will this cost the company?
Nothing! It really is free. The company is buying the bike, then leasing it back to the employee until the full amount is recovered. You will even save money by not paying your employer's contributions of the amounts that would have been deducted for national insurance.
Does the company need to apply for dispensation from the Inland Revenue or from HM Customs & Excise to run the Ride2Work programme?
No. As long as all Ride2Work forms are completed correctly, there is no need to apply for an official dispensation.
Does my company need to apply for a credit licence?
No. Companies are allowed to run salary sacrifice schemes without a specific credit licence as long as the purchase amount doesn't exceed £1,000.
Can we use the Ride2Work programme even if we are not VAT registered or exempt from VAT?
You can. There are still huge savings to be made, even without being able to reclaim the VAT.
I'm self employed, can I join the Ride 2 Work scheme?
You must be paid via PAYE to make the salary sacrifice.
Important points to be aware of:
* Bicycles bought under the Ride2Work programme must be used primarily for travelling to and from work, and they must be suitable for that purpose
* VAT may be reclaimed on bicycles if they are purchased to implement a green travel plan, reduce car use or increase staff health levels
* Leavers or retirees from your company become responsible for any outstanding amounts. These are usually subtracted from final salary payments, and become a taxable benefit
* At the end of the lease period, the employer may transfer title of the goods to the employee