Cycle to Work • Customer Service • About Us • Alpine Bikes
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.
The actual amount of discount appears to be a bit vague – precisely how much do I save?
Typical savings are between 43% and 50% but the precise amount depends on your personal tax. An individual being taxed at 40% will save a bit more than someone who pays 30% tax.
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 can transfer ownership for a nominal fee.
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, hybrids, mountain bikes, folding bikes, commuting bikes these are all fine. Children's bikes are not available via Cycle To Work. 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.
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-related items like downhill helmets, energy food or car racks are not allowed.
Can I purchase accessories only?
No, the rules set by the DfT say that you can only purchase a bike and accessories.
Can I buy a more expensive bike than my voucher amount?
Yes. You need to use your own card or cash to make up the difference when you pick up the bike. The extra amount will not be part of your salary sacrifice.
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?
It will still be down to you to complete the full payment even if you no longer possess the bike. It is very important to insure the bike, and any goods fitted to the bike, to safeguards against the losses following theft. You can obtain safety equipment under Cycle To Work, Alpine Bikes stock a range of Home Office-approved 'Sold Secure' bicycle locks.
Is there any problem with me having to insure something that isn't mine?
No, there is no problem. A similar situation occurs when the hirer insures a hire car.
What's the best way to insure the bike?
Household policies are usually much cheaper than specialist policies but you must ensure that the insurer covers the bike for work use and storage away from your home.
When do I start paying?
Your monthly salary sacrifice will begin in your next pay packet after you have collected your bike or had it delivered.
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 typical maximum voucher amount is £1,000, although you can buy bikes and accessories that cost more than this if you top up the difference yourself when you collect the bike. Alpine Bikes can issue vouchers greater than £1,000 but your employer must apply for a credit licence to do this.
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.
Do I need to maintain the bike myself or does my Company do it?
You are responsible for maintaining the bike for your own use.