Cycle to Work Scheme for Electric Bikes
An electric bike offers huge benefits for commuters over public transport and cars, improving your lifestyle and saving you money.
Improved health, increased confidence and able to make longer commutes easier are just a few benefits you can enjoy.
However, we're aware that they aren't the cheapest to buy up front.
That's why we've partnered with Cycle to Work Scheme, Cycle Solutions and the Green Commute Initiative to help you spread the cost into monthly payments with discounts on the initial purchase price.
Please note, GCI is for 15.5mph Electric Bikes only. Speed Pedelecs, Mopeds and Motorcycles are excluded from the scheme.
How It Works
- Choose an electric bike from our range and use the tool to see how much you can save
- Request a quotation - you can include accessories too
- We send you a pro-forma invoice and a GCI Quote Generator Link
- Complete the details in the link, and GCI issue your employer the invoice (unless they are already GCI members - if so it's automatic)
- Your employer pays this invoice to GCI
- You agree with your employer a salary sacrifice repayment scheme
- Once Paid, the money from GCI is released to us and we get in touch to arrange delivery
- You now have the bike!*
*This is where clever finance agreement restructuring comes in. You effectively hire the bike from GCI for 12 months, who then give you a free 5 year loan to extend the tax break. In effect, the bike is yours from day one but the paper-based status of the bike is what changes. Read up on that here.
Save between 32% and 47%
The scheme structure enables discounts of up to 47% on your purchase including accessories. Use our calculator to see exactly what you can save.
No £1,000 limit
GCI works differently from other Cycle schemes, with no £1,000 limit! This opens up a huge range of high quality electric bikes.
No end of term fees
Unlike other schemes, there's no end of term fees or final market value fees to pay.
Replace the car!
Thanks to electric bikes being perfect for commuting, you can save even more money by reducing or replacing your car usage.
Green Commute Initiative - NHS
One of the benefits of the GCI scheme is that anyone can apply, and take their application as a one-off without having to convince their HR department to sign up to a whole scheme.
Here are some of our most popular electric Bikes.
Urban.ebikes are able to offer an unlimited value thanks to our membership of the Green Commute Initiative scheme (GCI).
Electric bikes under £1,000 can be unreliable and poor quality, and it is best to invest in a higher quality bike. The Green Commute Initiative opens funding above and beyond the CycletoWork scheme, and is far more suitable for electric bikes.
With the Green Commute Initiative, to enable the over £1,000 salary sacrifice, they take on the responsibility of hiring the bike, not the employer. This benefits the user as there is no buy back required at the end of the agreement period.
Your Employer purchases a voucher for you to buy the bike with.
You can choose a payback period of your choosing for the salary sacrifice agreement. It's up to you and your employer what this repayment period is. 6, 12 and 24 months are most common but there is a lot of flexibility in the system. As soon as your employer has paid for the bike, we can arrange for delivery.
At the end of your 12 month hire agreement with GCI you will be offered, for free, a 5 year loan so that you don't need to pay over any more money with no Final Market Value charge to be paid.
The lack of end of scheme exit free allows the GCI to offer discounts of up a huge 47%, higher than any other salary sacrifice scheme
Green Commute Initiative is the only UK cycle-to-work scheme to offer bikes with NO £1,000 limit which means that scheme participants can chose an E-bike (or a conventional bike).
Employees can save up to 47% (depending on their tax band) and employers can save up to 13.8%. GCI doesn’t have any end-of-scheme penalty fees, just a free-of-charge extended 5 year loan period with a £1 fee at end to transfer ownership title.
This gives you a far healthier budget to play with and buy a better bike than you might otherwise be able to afford.
For example, if you earn £25,000 and are spending £1,000 on a bike, after tax and insurance you would only have the equivalent of £680 to buy a bike with. Because GCI is applicable on the full taxed value of the bike, you receive £1,000 worth of bike but for £680.
Bikes, e-bikes, accessories, safety equipment, and clothing are all included in the scheme, meaning you can get everything you need for the commute ahead.
Am I Eligible?
If you're a UK PAYE Taxpayer and your employer is willing, then you are eligible! It's as simple as that.
Those earning more than £46,000 will save 42% or more, and those under £46,000 will save 32%. You save on the full price of the bike.
|£46,000 to £150,000||42%|
For further information, please see the GCI website.
About the Green Commute Initiative
Green Commute Initiative is a Social Enterprise with a vision to get commuters out of cars and onto any kind of bike, with the dual purpose of improving both the individual’s health and wellbeing, as well as reducing the environmental impact of pollution and congestion from cars.
We are self-supporting and generate the monies we need to make things happen. We put our profits back into getting more commuters cycling and are passionate about E-bikes (electric bikes), believing they are the future of commuter travelling.
Green Commute Initiative is HMRC compliant and FCA authorised and regulated.
E-bikes are great for the environment and great for commuting; cycle in your business attire without getting hot & sweaty and arrive at work on time, feeling energised, and not stressed from the commute.
Buying an electric bike may be daunting and confusing. We've ridden a huge and helpful, easily structured guide to the types of electric bikes and the benefits of them.
Of course! You may be limited by the accessories you can buy, but no-one is going to be checking on your usage of the bike. There’s no limits on classification of bike either, so you could by an E-MTB or off road bike, as long as you also use it to commute.
Electric Bikes offer several benefits over unassisted bikes, and both are eligible on the scheme:
- Easier and Safer for beginners - Not ridden in a few years? Electric bikes take the strain out of pedalling and can get you up to traffic speed easier and quicker.
- Quicker at traffic lights - Electric bikes help you get up to 15mph without assistance, meaning no stumbling at the lights
- Easier hills, less sweat - The extra push up a hill can avoid you arriving at work in a pile of sweat
- Still gives you exercise - They don’t do everything for you, and you’ll still need to pedal! You can still get that heart going but just at a more civilised pace.
The department for transport has recently clarified that the previous £1,000 cap on electric bikes will be removed, meaning a huge range of electric bikes are now applicable.
Your employer will soon receive refreshed information to clarify the new lack of any limit.
Urban eBikes are proud to work with Cycle Scheme to offer an affordable way of financing a healthier and more pleasant commute. Spread the cost of a new bike over 12 or more months through salary sacrifice.
We work with the following Schemes:
- Cycle To Work
- NHS Bikes for Staff
- Green Commute Initiative
The Cycle to Work scheme was introduced in 1999 in an attempt by the government to promote healthier lifestyles and journeys to work. The scheme is in effect salary sacrifice, where you are hiring a bike from your employer which you then buy at the end of the period. Hundreds of thousands of people have successfully and happily bought bikes on the scheme.
Due to the slightly higher price of electric bikes, it’s also become a popular way to get in on the rapidly increasing popularity of electric assisted pedal bicycles (EAPCs). The rest of Europe loves them, so hop on!
The scheme works by your employer purchasing a bike on your behalf, with regular payments back to the value of the bike taken from your salary over a 12 month. At the end of this chosen period you purchase the bike based on it’s FMV (Fair Market Value) which is dictated by HMRC.
If you buy through UrbanEbikes via CycleScheme, then there is a 4 year option with no need to buy the bike at the end - it’s yours!
This final value is often much less than the original retail value thanks to depreciation, giving you huge savings, usually around 25%.
You can also purchase accessories through the CycleScheme, giving you everything you need to get up and cycling to work.
1. Pick your Package and Apply
2. Get your Gear - Once your employer has purchased the Cyclescheme package, you receive a certificate to exchange for a Bike and / or accessories
- Pick your Package and Apply
- Get your Gear - Once your employer has purchased the Cycle Scheme package, you receive a certificate to exchange for a Bike and / or accessories
- Spend your Certificate with Us!
Is the cycle to work scheme worth it?
In short, yes!
Because the payments for the bike are taken from your gross salary, your income tax and national insurance payments will be less. This offers savings up to 39% of the retail value of the bike.
Want to work out if the Cycle to Work scheme is worth it for you?Visit the Calculator
Do I need Insurance / What if it is stolen?
If the bike is stolen, you’re still liable for the agreement and will be paying out. In this case, we highly recommend you get insurance as soon as possible for your bike, and make sure you lock it up securely. Accessories are available on the agreement too, so there’s no reason not to throw some in!
How much does cycle to work scheme save?
Typically you can expect to save between 25 and 39%, depending on the finance package chosen.
Can self employed use cycle to work scheme?
Sadly not! Because it requires an Employer to purchase the bike and deductions from a PAYE, it’s not currently possible for self employed individuals to take part.
Can you pay off cycle to work scheme early?
It is not worth ending the Cycle Scheme early, as you will not receive any contribution discount on your agreement. It may be best to contact CycleScheme directly to discuss any situation in which you wish to end the agreement earlier than 12 months.
If you are made redundant or leave the job, then any remaining balance on the agreement will be taken from your NET final salary package.
Can you buy two bikes on the Cycle Scheme?
Yes, you can, but you should be aware of the financial limits and it may require further justification from your employer. The two bikes you purchase should be for yourself individually and not for a spouse etc.
However, it may be that you wish to have 1 bike to ride to the train station, and another to complete the journey at the other end. This is possible, however both bikes would need to come out of the same financial agreement.
Instead we recommend considering a folding electric bike. This can be easier to justify to an employer while solving the problem of taking it on the tube, etc.
Does cycle to work scheme affect pension
Not at all. It is a separate agreement. Your pensionable earnings are calculated on Gross earnings and therefore not affected by the Cycle Scheme.
How long does cycle to work scheme take?
We recommend having all the information you might need ready before applying. This includes all the details of the Bike, your budget, your payroll number and ideally the employer code.
Once approved, a certificate will usually take around 2 weeks.
What bikes are NOT eligible?
For it to be eligible, the bike must have pedals! Our electric Mopeds and Motorbikes - Govecs, Super Soco etc sadly are not available on Cycle to Work. However they do qualify on our 0% finance scheme.
Do you still have questions?
We're here to help! If you have any questions about the scheme or any bikes you may be looking at for the scheme, please do get in touch.