Cycle to Work (Salary Sacrifice) is a simple scheme whereby an employer can provide staff with an electric bike ‘tax free’ at approximately half the retail price and at no cost to the company.
We work with Green Commute Initiative and below are the simple steps to getting your bike through cycle to work.
Step 1: Employee expresses interest in scheme and speaks to their HR Dept to gain permission to get quote. Third party finance can be arranged where necessary.
Step 2: Employee checks to see where nearest registered bike shop is. Let us know if your chosen bike shop isn’t registered with us and we will sign them up.
Step 3: Employee goes to a registered bike shop and chooses bike package. Bike shop gives price (Please ensure they will honour the price for 30 days).
Step 4: Employee fills in the form on our Instant GCI quote page (this could be done in the bike shop).
Step 5: Proforma is generated and the employee takes it to employer to be paid. Akira will make this payment where third party finance has been used.
Step 6: Salary sacrifice agreement and hire agreement are e-mailed to the employee to be e-signed. Once both documents are signed, GCI pays the bike shop via a self-invoice.
Step 7: Voucher is e-mailed to the employee so they can collect their bike. It is vital that the employee takes the voucher and photo ID with them when collecting their bike.
Step 8: GCI e-mails a copy of the salary sacrifice agreement to the employer and if applicable, an invoice paid with instructions on how to handle the VAT element.
Step 9: Employee’s salary is reduced through salary sacrifice for agreed period of time. The employer will start to repay the third party finance if used.
Step 10: After the hire agreement period ends, GCI invites the employee to enter into a free of charge loan of the bike for a further five years and nine months.
Step 11: After loan period ends, the employee makes nominal £1 payment to take title ownership of bike. Bike has no market value at this point