The University of Nottingham offers Bike to Work schemes. This allows employees to hire a bike and equipment from the University for a period of twelve months after which the University may transfer ownership to you at its discretion. You may receive Income Tax and National Insurance savings through a salary sacrifice scheme. To learn more about each scheme please click on their links below:

• Cyclescheme (this scheme uses a number of local bike shops)
• Evan's Cycles Ride2Work scheme (this schemes is through all Evan's cycle shops)

If you have any questions about the Bike to Work schemes please contact the Environment Team. If you have any financial questions please contact the Finance Department.

Cyclescheme

So how does it work?

1. You find a bike shop that is a member of the scheme – don't worry it isn't that difficult, take a look at: http://www.cyclescheme.co.uk/partners
   
   
2. Get a written quote for the bike and accessories from the shop that you want the University to buy.
    
3. Once you have your quote enter the details on the University of Nottingham Cyclescheme page. When entering your quote you must accept the hire agreement electronically.
    
4. An email notification of your quote will be sent by Cyclescheme to the University's Tax Benefits Scheme Manager (Julie Hatton at KMC) to review. If appropriate the quote will be approved and the hire agreement accepted electronically on behalf of the University.
    
5. A Cyclescheme voucher will be sent to your home address – this should be taken to the bike shop and exchanged for the bike and accessories.
    
6. The electronically signed hire agreement gives the University authority to vary your terms and conditions of employment and you are entering into a salary sacrifice arrangement for a period of twelve months. The reduction in salary may attract savings in Income Tax and National Insurance.
   
   
7. After twelve months the University may offer the option to transfer ownership of the bike and accessories to you. If you do not want to accept the transfer of ownership the University will arrange collection of the bike and accessories from you.
   
   
8. If the University transfers ownership you will receive a P11D at the end of the tax year. A P11D is notification issued to you and HMRC of a benefit in kind. HMRC will use the document to tax you on that benefit (see FAQ for calculation of the benefit).  

To calculate the monthly salary sacrifice use the Cyclescheme calculator and click on the 'show advanced details' link.

Evan's Ride2Work

So how does it work?

1. You choose a bike and accessories from Evans Cycles and total up the cost.
    
2. Enter the details on the Evans Cycles Online Certificate Request Form using our company Ride2Work Account Number C15198. Then accept the hire agreement electronically. An email notification of your request will be sent to the University's Tax Benefits Scheme Manager (Julie Hatton at KMC) to review. If appropriate the request will be approved and the hire agreement accepted electronically on behalf of the University.
    
3. Once your request has been approved you will be emailed an Evans Cycles voucher.
   
   
4. You can use the voucher in any Evans Cycles store or through the Evans Cycles Mail Order Service to purchase the bike and accessories.
   
   
5. The electronically signed hire agreement gives the University authority to vary your terms and conditions of employment and you are entering into a salary sacrifice arrangement for a period of twelve months. The reduction in salary may attract savings in Income Tax and National Insurance.
   
   
6. After twelve months the University may offer the option to transfer ownership of the bike and accessories to you. If you do not want to accept the transfer of ownership the University will arrange collection of the bike and accessories from you.
   
   
7. If the University transfers ownership you will receive a P11D at the end of the tax year. A P11D is notification issued to you and HMRC of a benefit in kind. HMRC will use the document to tax you on that benefit (see FAQ for calculation of the benefit).  

Frequently Asked Questions

1. Q: It says that you pay twelve monthly ‘hire’ payments then may be offered the option to buy the bike and accessories - how much does this cost you in total?

A: After twelve months of paying the salary sacrifice you may be asked if you want to have the bike And accessories ownership transferred to you. If you do not want to accept the transfer of ownership the University will arrange collection of the bike and accessories from you. If the University transfers ownership you will receive a P11D at the end of the tax year. A P11D is notification issued to you and HMRC of a benefit in kind. HMRC will use the document to tax you on that benefit.

In the following example if the original cost of the bike was £800 and accessories £200 the value shown on the P11D will be based on a HMRC matrix. The matrix uses a value of 18% for bike costs (excludes accessories) up to £500 and 25% between £501 and £1,000.

Therefore, the transfer value for the bike in this example is £800 * 25% = £200.

The tax charged on the £200 for a basic rate taxpayer will be £200 * 20% = £40

The tax charged on the £200 for a higher rate taxpayer will be £200 * 40% = £80.

Therefore, the total cost to you will be the £1,000 (less Income Tax and National Insurance savings each month) and the tax charge as shown above.

2. Q: Can I hire a bike over the £1000 voucher limit under the schemes?

A: No, you can only hire a bike and accessories up to a maximum of £1,000 in total.

3. Q: How long do I have to wait to for my voucher?

A: It takes up to two weeks to receive the Cyclescheme voucher through the post and as the Evan's voucher is electronic via email this is normally quicker.

4. Q: After joining the scheme, what happens if I leave my employment at the University, or am only on a contract that might end before I complete the scheme?

A: In these cases any outstanding payments are taken from your net pay so do not attract the full Income Tax and National Insurance savings. A P11D will be issued at the end of the tax year as explained above

5. Q: Can I hire a bike from a shop in the Cyclescheme that isn't in Nottinghamshire?

A: Yes, provided they are a shop that offers Cyclescheme.

6. Q: Is the University on the Halford's cycle scheme, or any other cycle scheme?

A: No, the University offers the above two schemes.

7. Q: Can I join a scheme a second time after I have completed paying for the first scheme I joined?

A: Yes, provided you have finished and have paid your twelve monthly installments and the bike has been either transferred to you or collected by the University.

8. Q: Can I hire a bike under one of the schemes for a family member?

A: No – the scheme is only for University employees under a full contract of employment and must be used primarily for commuting to and from work.