LA communications to schools

Title: / Cycle2work Scheme – an occasional reminder
Summary: / Now the summer is upon us (oh yes it is!) I thought that this would be a good time to remind all staff in your school about our brilliant tax-free ½ price bike2work scheme.
Target school(s): / All
Specific schools
For attention of: / Heads, SAOs, STP Champions
Author: / Richard Evans
Contact: / Richard Evans
Email: /
Telephone: / 020 8753 3344
Newsletter date: / 23rd May 2016
Action required/
due date: / Circulate to all staff on H&F payroll

Save at least 32% on the cost of a brand new bike Our bike2work (b2w) scheme is provided through Halfords. It's quick and easy to use, and is now always open. To see the bikes and place an order, click here Employer Code is LBHF2014
Other retailers are available! Staff are not restricted to the Halfords range of bikes. You can also use any one of a network of 450 independent retailers, most of which are based in the London area. If you want to do this you need to...

·  phone 08450 778 850 to find out which stores near you are on the network, say if you are interested in any particular brand

·  speak to the store direct to confirm price and availability of the bike

·  apply for the scheme as normal as if going into a local Halfords store

·  once approved you will receive a Letter of Collection

·  phone 08450 778 850 to allocate the LOC voucher for use in your chosen independent store

Cycle Training is highly recommended
What happens at the end of the 18 months? The Council will transfer ownership to you as a benefit in kind. You will receive a form P11D from Payroll at the end of the tax year in which the final deduction is made from your salary. This will tell you that you may owe some tax to HMRC because you have received a benefit in kind from your employer. The amount of tax is based on the value of the bike at date of transfer of ownership and is taken from a table issued by HMRC. For example if the cost of your bike, net of VAT) was £499, then its value after 18 months will be deemed to be £80 (£499 x 16%). You will owe £16 in tax if you are a basic rate tax payer. If the cost of your bike was £1,000, then its value will be deemed to be £210 (£1,000 x 21%). You will owe £42 in tax. You won’t even have to find this sum because the P11D information allows HMRC to adjust your tax code slightly for the following year.
General information: Cycle to Work is a tax incentive aimed at encouraging employees to cycle to work, thereby improving their health as well as reducing air pollution and traffic congestion. The scheme allows employees to benefit from bikes and commuting equipment such as lights, locks and panniers completely tax free. Employers benefit from fitter, more punctual, more wide-awake staff. Employees benefit from better health and better bikes because their money goes further. With a budget of, say £400, an employee can now afford a bike, plus accessories, worth nearly £800. Find more info at wikipedia and bikeradar.
To qualify for the bike2work scheme the bike must be used by you to assist you in journeys to and from work. The bike may also be used for leisure purposes providing this does not exceed 50% of the overall usage.

Further information

See FAQs here, then if you cannot find the information you want,email Valerie Bolgerfor salary sacrifice information or phone08450 778 850for information about the bikes and equipment.

(NB this does not apply to schools whose staff are no longer on the H&F payroll. But all is not lost! Any employer can set up a b2w scheme. So find out if your employer offers such a scheme and if not, suggest they set one up. It’s usually a job for people in the HR dept., and it is very straightforward. www.cyclescheme.co.uk is a good place to start.)