Cycle to work scheme

To be eligible you must:

• be an employee of the University (with a contract in place for at least the duration of the salary sacrifice period but this scheme is not open to employees on probation),
• earn more than the National Minimum Wage after salary sacrifice,
• be aged 18 or over (Under 18s can join the scheme if their guardian signs a guarantor agreement),
• intend to use the bike primarily for commuting to work (at least 50% of journeys should be for commuting to work).

There is no credit check for employees wishing to participate in the scheme.

Salary sacrifice occurs when an employee agrees to give up part of their salary for an agreed period (in the case of the Keele University Cycle to Work scheme this is 18 months) in exchange for a non-cash benefit, such as the loan of a bicycle and safety equipment.

As salary sacrifice is taken from the gross salary (before tax) rather than net salary it means the employee pays less income tax and National Insurance.

Example

Here’s an example of how the savings work during the hire period, assuming the following:

• Employee is paid monthly,
• Employee is a standard rate tax payer hiring a bike and safety equipment to the value of £500 (incl. VAT),
• The hire period is 18 months,
• The employee’s monthly gross salary is £1,200.00 (£14,400 per annum).

Step 1. Employees considering participating in the scheme should contact Karen Beeston, HR Advisor, (k.l.beeston@keele.ac.uk or ext 33404) to check they meet eligibility requirements. If you are currently working from home due to Covid-19 restrictions and not commuting to work It's advised that you delay joining the scheme until you resume commuting to work so that you can meet the 'qualifying journeys' requirement of the scheme.

Step 2. The University is partnered with Green Commute Initiative. Employees wishing to participate in the scheme should visit a bicycle store registered with the Green Commute Initiative (for store locator go to https://www.greencommuteinitiative.uk/gci-registered-bike-shops/ ) to choose a bike and, if required, safety equipment to a maximum of £1,000 including VAT for standard (pedal power) bikes and up to a maximum of £2,500 for electric bikes. Please note that safety equipment includes items such as lights, reflective strips, reflective clothing, and helmets, but not cycle computers, turbo trainers or waterproof clothing (unless reflective).

Step 3. Employees then apply via https://www.greencommuteinitiative.uk/quote/ using the unique Keele reference KEELEP for standard (pedal power) bikes and reference KEELE for electric bikes. 

Step 4. The University will check the application to ensure the employee meets the eligibility requirements (see Question 1 above). 

Step 5. Green Commute Initiative will then send to the employee two electronic agreements to sign, one being the hire agreement and the other the salary sacrifice agreement. The University will be notified and the salary sacrifice scheme will commence from the next available Payroll processing schedule/run after the notification is received. This will apply even if the employee has not yet redeemed the certificate.

Step 6. Green Commute Initiative will send the employee a voucher to redeem at the bike shop and notify the bike shop that the request has been notified. 

Step 7. The employee can then contact or visit the bike retailer to exchange the voucher for the bike package.

Step 8. At the end of the initial 90 day hire period Green Commute Initiative will contact the employee to discuss options concerning ongoing use of the bike. One of which is to extend the hire free of charge to continue to benefit from the use of the bike.

The scheme allows for bikes and equipment up to £1,000 inc.VAT. for standard (pedal power) bikes and up to £2,500 for electric bikes. The difference in value is due to electric bikes being much more expensive than standard (pedal powered) bikes. 

The bike and equipment remain the property of Green Commute Initiative throughout the hire period. Employees will have the option to take full ownership of the bike at the end of the 'loan' term or during the hire/loan agreement. We would reccomend you contact Green Commute Initiative to understand these options and any financial impact these may have.

It is the employee’s responsibility to maintain and insure the bike. If the bike is stolen you should inform Green Commute Initiative so that this can be administered and we can terminate your hire/loan agreement. You will be required to pay Keele University any outstanding monies owed under your salary sacrifice agreement. 

The University provide free monthly dr bike maintenance checks on campus. You can find further information on the bicycle users group webpages.

The cycling charity 'Sustrans' offer good advice on bike security here

Our cycle to work scheme provider Green Commute Initiative recommend bike insurance through a partner. Further details can be found here 

Employees should use the bike primarily for commuting to and, if relevant, between workplaces (at least 50% of the bike’s use should be for work purposes). However, the bike can also be used for non-work purposes. If you don't intend to use the bike for 'qualifying journeys' you will not be able to join the scheme. If you were to join the scheme and the bike wasn't used for 'qualifying joureys' you would become liable to an income tax Benefit in Kind charge.

Please note that employees cannot claim business mileage allowance with a bike that is being hired to them by their employer.

At the end of the initial 90 Day hire period the employee will be contacted by Green Commute Initiative and presented with their options. These include the option to purchase the bike at HMRC’s Fair Market Value, or select an extended free of charge loan. At the end of the extended loan period, the employee has the option to buy the bike for £1.

Once signed, the Hire Agreement is non-cancellable following a cooling-off period of 14 working days following collection of the goods. This means that if an employee leaves or is made redundant from their employment during the hire period they are obliged to pay the remaining salary sacrifice amount in full from net pay (i.e. without any tax relief).

If applicable, the employee may then be offered ownership of the equipment in the normal way (please see Question 8 above).