Criterium Cycles - Cycle to Work

This is a tax term that means you "sacrifice" or "give up" part of your annual salary in exchange for a benefit. The benefit in this case is being able to hire from your employer both a bicycle any related safety equipment and accessories you will need to cycle to work. The benefit is especially good because it means you are saving the tax and NI on that part of your salary that you sacrificed and the Government does not treat the resulting benefit as a 'benefit in kind'.

There is no restriction on the kind of bike you can get other than the value limit of your voucher which may vary employer to employer. Until fairly recently, there was a limit of £1,000 but that has now been removed by HMRC. Some employers may still use the £1,000 limit but it is no longer an HMRC cap. This is especially helpful if you are interested in an electric bike, the perfect solution for those looking to commute more on their bike.

You can also use your certificate for clothing, accessories & tools that are designed to make your journey safer and / or more secure. These might be commuter clothing, shoes & helmets as well as vital accessories for your bike such as mudguards, lights, reflectors and panniers. It is also worth considering other accessories such as tools & pumps, locks for security and commuting backpacks, ll of which make your journey safer, more efficient and improve the longevity of your lovely new bike.

No, but the Government scheme rules stipulate that you must use it at least 50% of the time to cycle to work. However, that still leaves plenty of time for riding the bike for pleasure!

Not in the legal sense though you are responsible for looking after it. The bike and equipment are technically owned by your employer during the hire period.

In order the Cycle to Work scheme to remain a tax efficient salary sacrifice scheme, there can be no guarantees that your employer will sell or transfer ownership of the bike to you at any point. HMRC have however set guidelines that enable the calculation of the bike's "fair market value" at the end of the hire period. For bikes under £500 this is currently 18% of the original price and for bikes over £500, 25% of the original price

At the end of the hire period you have 3 options:

Return the Bike & Equipment to your employer.
Continue to hire the bike from your company for a further period of up to 36 months.
In most instances your employer will not charge for this.
Buy the Bike from your employer at the "fair market value"

The policy may vary by employer so you should ask your employer whether they have any policies in place relating to what happens at the end of the hire period though it appears that most seem to adopt Option 2. However, you do need to check if you want to be sure.

Some employers do require a quotation prior to issuing your voucher. If that is the case, just call us or email us at edinburgh@criteriumcycles.co.uk and we will be pleased to provide one. Please note that whilst this provides the information your employer or scheme provider may require, it does not reserve your bike.

Unfortunately, there is no system for redeeming certificates online.