Staff cycle schemes
The University offers two Cycle to Work schemes.
Operated on a salary sacrifice basis, these schemes allow employees to hire a bike and equipment from the University for twelve months. After this period the University may, at its discretion, transfer ownership to the employee. The employee may receive Income Tax and National Insurance savings through the salary sacrifice scheme.
Cyclescheme step-by-step guide
- Find a bike shop that is a member of the scheme. Search for your nearest shop at: http://www.cyclescheme.co.uk/partners
- Once you’ve decided what bike and accessories you want the University to buy, get a written quote from the shop.
- Enter the details of your quote on the University of Nottingham Cyclescheme page. When entering the quote you must accept the hire agreement electronically.
- An email notification of your quote will be sent by Cyclescheme to the University's Pension and Benefits Services to review. If appropriate, the quote will be approved and the hire agreement accepted electronically on behalf of the University.
- 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.
- 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 12 months. The reduction in salary may attract savings in Income Tax and National Insurance.
- After 12 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.
- 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).
Download a copy of the University's Cyclescheme poster
Evans Cycles Ride-to-Work step-by-step guide
- Choose a bike and accessories from Evans Cycles and total up the cost.
- Enter your details on the Evans Cycles Online Certificate Request Form using our company Ride-to-Work Account Number: C15198. Then accept the hire agreement electronically. An email notification of your request will be sent to the University's Pension and Benefits Services to review. If appropriate, the request will be approved and the hire agreement accepted electronically on behalf of the University.
- Once your request has been approved, you will be emailed an Evans Cycles voucher.
- You can use the voucher in any Evans Cycles store or through the Evans Cycles mail order service to purchase the bike and accessories.
- See stages 6-8 of the Cyclescheme step-by-step guide above.
Download a copy of Evans Cycles Ride-to-Work poster
View extra perks available with Evans Cycles Ride-to-Work
Calculate your costs
To calculate the monthly salary sacrifice amount and the savings you could make, use the Cyclescheme calculator (Employer Code: 4178) or the Evans Cycles Ride-to-Work calculator.
Frequently asked questions
It says that you pay 12 monthly ‘hire’ payments then may be offered the option to buy the bike and accessories. How much does this cost you in total?
After 12 months of paying the salary sacrifice, you may be asked if you want to have ownership of the bike and accessories 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% for bike costs 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.
Can I hire a bicycle over the £1,000 voucher limit?
No, you can only hire a bike and equipment up to a maximum of £1,000 in total.
How long do I have to wait to for my voucher?
It takes up to 2 weeks to receive the Cyclescheme voucher through the post. As the Evans voucher is sent via email this is normally quicker.
I’m on a temporary / fixed-term contract – can I still join the scheme?
In joining the scheme you are committing to 12 monthly payments, so must have at least 12 months remaining on your employment contract and be paid through the University’s payroll. Due to tax rules, it is not possible to join the salary sacrifice scheme and make one full payment upfront and still receive the Income Tax and National Insurance savings. If your contract is for less than 12 months, it may be possible to join the scheme and receive the tax benefits whilst employed by the University and then have the outstanding payments taken from your final month’s net pay, but this would not attract the full Income Tax and National Insurance savings.
If your pay varies from month to month, please ensure that your pay will cover the monthly deductions for the scheme.
After joining the scheme, what happens if I leave my employment at the University?
In these cases any outstanding payments are taken from 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 in the step-by-step guides above
Can I hire a bike from a shop in the Cyclescheme that isn't in Nottinghamshire?
Yes, provided they are a shop that offers Cyclescheme.
Is the University on the Halfords Cycle2Work scheme, or any other cycle scheme?
No, the University offers Cyclescheme and Evans Cycles Ride-to-Work. However, Cycle Republic, which is part of the same group as Halfords, partipates in Cyclescheme.
Do I need to insure the bike?
Although the bike is, technically, owned by the University, you are responsible for the bike during the hire period so it is your responsibility to arrange adequate insurance cover for the bike.
Can I join a scheme a second time after I have completed paying for the first scheme I joined?
Yes, provided you have finished and have paid your 12 monthly instalments and the bike has been either transferred to you or collected by the University.
Can I purchase a bicycle under one of the schemes for a family member?