Freewheel are proud to be able to offer bicycles via the Cyclescheme. Please click here for the cyclescheme website.

Who are Cyclescheme?

Cyclescheme are an independent company created to help both employers and employees make the most of the Green Transport Plan Initiative and associated tax concessions offered by the Chancellor.

Cyclescheme use their industry experience and trade contacts to get you riding to work on a bike of your choice from your local preferred bike shop.

Why use Cyclescheme?

Cyclescheme customers are not limited to any particular bike or accessory brand and therefore can choose the best for quality and value-for-money. This results in the best package of bike, accessories and safety equipment.

Cyclescheme work with Employers, under this arrangement, to ensure that Hire Agreement terms and conditions are written in full compliance with the Office of Fair Trading, Her Majesty's Revenue & Customs, Trading Standards and the Department for Transport regulations.

The actual amount of discount appears to be a bit vague - what are the savings?

Typical savings are 43% but the precise amount depends on your personal tax band. An individual being taxed at the higher rate will save a bit more (around 50%) than someone who pays standard rate tax. Some employers cannot reclaim VAT in the normal way so the savings are not as great, the NHS is a good example. In this case expected savings are 33 and 40%. Adding the ability to spread payments over one year still means that great savings are to be made.

It is at the discretion of the employer if they pass on the VAT saving, some employers will retain the VAT to offset any administration costs.

If the employer uses external finance, to buy the bikes, then savings may be around 5% less than quoted above but this is countered as payments are usually spread over 18 months to achieve a better borrowing rate.

Finally, the fair market value payment of around 5% needs to be taken into account to establish the total savings.