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Cycle Scheme

Cycle Scheme Fequently Asked Questions

This FAQ guide should hopefully answer any questions about the Cycle Scheme, how it works and how to apply with us here at Scotby Cycles. Should you have a question not addressed in this FAQ please contact us or email or fill out our contact form for more information.


a) In a nutshell, how does this work?
b) How much do I pay and for how long?
c) What happens after twelve months?
d) What bikes and accessories can I apply for?
e) How do I apply for a quotation?
f) What do I do once I have received my quotation?
g) What do I do once I have received my certificate?
h How long does it take for me to receive my bike?
i) How much am I actually saving?
j) Do you participate in any other cycle voucher schemes?

a) In a nutshell, how does this work?
First things first you need to find out if your employer is enrolled with Cycle Scheme (if they aren't you can find out more here on becoming enrolled) - once you have found this out you can apply with us for a quotation for a bike which you either hand to your employer or complete it online yourself on the Cycle Scheme website.

Cycle Scheme will process your quotation and issue you with a certificate for the bike and any accessories you might have requested (see restrictions on what you can request), once you have been issued your voucher we'll be informed by Cycle Scheme and we'll begin the next phase in processing the order; once we have received the voucher and any supportive documentation we'll send you your bike which you can use to commute to and from work.

Initially for the first few years of ownership you're technically hiring the bike from Cycle Scheme, but more on that here.

b) How much do I pay and for how long?
The amount you pay each month from your salary depends on the value of the bike but for example on a £1,000 bike (the maximum certificate value you can apply for) you'd be paying £56.67 (net salary sacrifice) per month for twelve months. You might also want to see the part about how much you'd save to get an idea of the monthly commitments for a more common certificate value.

c) What happens after twelve months?
During this initial twelve months you're technically hiring the bike from Cycle Scheme so after twelve months you can enter into an Extended Use Agreement (EUA) for which you pay a one-off deposit of 7% of the voucher value (3% for vouchers below £500 in value).

This will allow you to use the bike for an additional three years without making any additional payments; during this three years the value of the bike depreciates to such a level that the number crunchers at HMRC believe the bike is worth the deposit you paid a few years earlier.

Cycle Scheme will contact you after this time and ask if you would like to take ownership of the bike permanently in exchange for the deposit paid or return the bike to Cycle Scheme and have the deposit refunded.

OR if this doesn't sound attractive you have two other options...

After twelve months you can purchase the bike from Cycle Scheme outright for 25% of the vouchers value (or 18% of the vouchers value if the voucher was for less than £500) or you can return the bike to Cycle Scheme - they'll be in touch to present the these options to you.

In the long term the EUA agreement makes much more sense.

d) What bikes and accessories can I apply for?
You can pretty much apply for any bike we have available online (note that Trek bikes must be collected from in store) except childrens bikes and tandems etc. The bike of course must be for the person applying for the certificate from Cycle Scheme.

In terms of accessories you can't apply for the following as part of your quote;

  • Cycle computers (inc. GPS units)
  • Childrens trailers (although child seats are allowed)
  • Car racks or any car transportation equipment
  • Energy products (food and supplements)
  • Cycle training or immaterial services
  • Servicing or any workshop tasks
  • Gift vouchers, delivery charges, store credit etc.
  • Turbo trainers, tri bars or anything specific to racing

If you have any questions about the eligibility of an item just get in touch.

e) How do I apply for a quotation?

The easiest way to apply is to email us details of what you'd like along with the following details;



Details of the bike, helmet and any accessories.

IMPORTANT! Remember the limit to any certificate is £1,000 and that total has to be made up of the RRP (recommended retail price) of the goods, not the sale or any offer prices we have listed online.

Email all this to

If you are happy with the draft quotation we ask you put down a refundable 10% deposit on the goods, this is so we don't end up with a third floor stock room full of bikes awaiting cycle scheme certificates which people may have changed their minds over but never mention anything to us. Once you have your certificate we'll refund the deposit.

f) What do I do once I have received my quotation?

Fill out the details of your quotation online on the Cycle Scheme website or hand the quotation to the relevant individuals within your place of employment. They'll take it from there and you should have your certification between two and eight weeks is what we typically see, this can of course take longer depending on your employer.

g) What do I do once I have received my certificate?

Get in touch with us, usually we'll have already been notified by Cycle Scheme that your certificate has been issued so we'll have already began the next phase in your order, namely getting the goods to you and refunding your deposit.

You'll need to send us the certificate along with some valid photo ID (drivers licence, passport etc), please use a recorded mail or special delivery service for this - the photo ID will be returned to you via Special Delivery.

h) How long will it take for me to receive my bike?

Assuming everything is present and correct once we have your certificate and any relevant supporting documents we'll dispatch your bike within a working day or two, we currently use a two working day service with DPD for the whole of the UK which is free of charge to most addresses other than those in remote locations.

i) How much am I actually saving?

The amount you save depends on the amount you earn and the value of your certificate, basic rate taxpayers would be looking at saving 32% off the retail value of the goods whereas higher tax rate payers would be looking to save 42% off the retail value of the goods.

A certificate based on the following items as an example;
Specialized Sirrus Sport (£449.99)
Specialized Align Adult Cycle Helmet (£39.99)
Endura Gridlock Waterproof Cycling Jacket (£56.00)
Bontrager Air Support Road Mini Bike Pump (£23.99)

Total Retail Price
Cost after savings for basic rate tax payer:
Cost after savings for higher rate tax payer:
Example Savings20% tax, 12% NI40% tax, 2% NI
Package RRP£569.97£569.97
Incoming tax and NI saved£182.39£239.39
Monthly hire payments (before tax)£47.50£47.50
Monthly hire payments (take home pay)£32.30£27.55
Percentage saving32.00%42.00%
End of Hire20% tax, 12% NI40% tax, 2% NI
Extended use deposit (where offered)£15.90£15.90
Total cost after extended use deposit£403.38£346.48

j) Do you participate in any other cycle voucher schemes?

We do, it seems there are a myriad of other similar schemes out there and we have accounts with most of them, Bike2Work, Halfords, Bikes4Work etc.. we prefer Cycle Scheme but if your employer is with someone else this isn't a problem, please get in touch as the details of each circumstance are different although all work along the same lines.

As always, if you have any questions please just get in touch.

Updated: 23/02/2015