Human Resources

cycle+

Get a bike for work the easy way!

Durham University, in association with Cyclescheme Limited, can help you cycle to work. You'll save money with this tax-free benefit while improving your fitness, health and boost wellbeing.

cycle+ is possible due to the Government's Green Transport Plan and Cycle2Work Scheme. The Government scheme was launched to help increase access to more sustainable means of transport to work and improve congestion. This is a national scheme, operating successfully in many universities.

For more information about cycling to and from work in Durham and Stockton, the University has two bicycle user groups (BUGs). The benefits of cycling are well known but click onto one of the related links right to find out more!

Please note: The bike must be used for at least 50% of your journey to work. Members of staff can join cycle+ at any point throughout the year.

How does cycle+ work?

This is a hire purchase agreement with the University, with payments from your salary each month for 12 months. After the initial 12 month hire period, the bike is transferred to Cyclescheme who handle the Market Value collection. The extended 'hire period' reduces the value of the bike in line with the four year valuations (3% and 7% depending on the initial purchase price of the bike) in the HMRC tables.

You can order the bike and equipment of your choice from one of 1,600 independent bike retailers. The cost of your bike and equipment is limited to £1,000 (retail price including VAT).

For more information download a useful leaflet or go to Cyclescheme including:

  • An online calculator to find how much you could save and your monthly payments from salary;
  • The new Market Value Process in response to HMRC changes (Aug 2010);
  • A short video on how the scheme works;
  • Shop finder for participating independent bike shops - just enter a postcode.

What do I do next?

  1. Find a participating bike shop, enter a postcode onto Cyclescheme's ‘Find a Shop Link', it will search over 1,600 participating independent bike shops.
  2. Visit your selected shop for advice and choose the bike and equipment you want.
  3. Agree the price with the retailer, the retailer will complete a paper quotation form (you will receive a copy and the shop will keep a copy), this is the price that will be paid for the bike and equipment.
  4. Apply online for your chosen bike and equipment by entering the details and requesting a secure voucher. You will be asked to digitally sign your hire agreement. Alternatively call 0844 879 5101 to complete your application.
  5. You will receive an email confirmation with details of your request.
  6. Your details and request will be sent to Payroll, who will confirm eligibility and approve the request by digitally counter signing the hire agreement.
  7. You will receive an email with the completed, signed Hire Agreement (you can print this out for your records).
  8. If approved, Cyclescheme will send an invoice to Payroll for the bike package.
  9. Your secure voucher will be sent by post to your home address once the invoice is paid by Payroll.
  10. Contact your chosen bike shop to arrange collection. You'll be asked for photographic ID when you collect your bike.
  11. Your hire purchase reductions will be taken from your gross monthly salary.
  12. At the end of the initial 12 month hire period with the University, participants may be given the option to take ownership of the bike or extend the 'hire period' with Cyclescheme. The appropriate Market Value will be calculated using HMRC's Valuation Table at this time. The 'acceptable disposal value percentages' in HMRC's Valuation Table for bikes aged up to four years are 3% or 7% inclusive of VAT.

  13. Employees who choose to sign a hire agreement with Cyclescheme may be given the option to take ownership of the bike at the end of the extended hire period, or simply return the bike.

Timescales

The scheme is open throughout the year for applications. Invoices are paid monthly by Payroll for all signed hire agreements that are received by the 19th of the month. Any hire agreements received after the 19th of the month will be paid in the following month. You will receive your voucher around one week later at your home address.

Got a question? You may find the answer in FAQs or contact Karen Barrie in HR on 46530

IMPORTANT!

Insurance

You are responsible for insuring the bike during the hire period. If the bike is stolen during the hire period, you will continue to pay your monthly instalments. These monthly payments will be from your Net pay not Gross, therefore no savings will be made. It is therefore important that you make insurance arrangements. See Cyclescheme advice on insurance for your bike or check with your Home Contents Insurance provider. If the bike is stolen or damaged, you must inform Janet Robertson, Payroll Manager.

Eligibility

This scheme is run through a salary reduction arrangement whereby you agree to temporarily reduce your salary for a period of 12 months to pay for the hire of goods, in this case a bike and equipment. The scheme is only available to UK tax payers who pay PAYE and NI.

As with other salary reduction schemes, by participating in cycle+, you are agreeing to a change in your terms and conditions of employment.