How it works with Cycle Solutions

You can watch Cycle Solution's summary video on how it all works here.

Below we explain how it works specifically with the FLIT-16.

1. Pre-order your FLIT-16 (if you haven't already!): your payment acts as a deposit

If you haven't already, pre-order your FLIT-16. The amount that you pay for the bike effectively acts as a deposit for the bike.

2. Your employer buys your FLIT-16 through Cycle Solutions

As soon as the bike is ready for delivery, it becomes eligible for the Cycle to Work Scheme. At this point, you need to apply to Cycle Solutions for the amount that you paid plus the 12% Cycle Solutions scheme fee (e.g. if you pre-ordered your FLIT-16 for £1,500 you'd apply for the value of £1,500 + 12% Cycle Solutions retail scheme fee = £1,680).

Your employer and Cycle Solutions will then review your application, approve it, and then pay us for your FLIT-16.

3. Receive your refund from FLIT for your 'deposit'

Once we've received payment from your employer, we'll refund the original amount you paid during our pre-order campaign.

4. Start your monthly repayments (TAX FREE!)

Here's when you start saving! Once your bike has been delivered, you'll start your monthly repayments to your employer. This is the same as the GCI and Cyclescheme in that it is a salary sacrifice scheme, so the monthly payments are deducted from your salary before tax.

With Cycle Solutions, your repayment period is agreed with your employer (normally this is one year). Again, similar to the GCI & Cyclescheme this year is effectively a 'rental period'.

What happens after the one year 'rental period'?

Similar to Cyclescheme, once the rental period is up you have three options to choose from. 

1. Zero cost extended hire -

You can sign up to an extended rental agreement. You will have nothing further to pay and the ownership will be automatically transferred to you after the extended rental period.

2. Immediate ownership for Fair Market Value -

Take ownership of your FLIT-16 immediately by paying Cycle Solutions the market value (e.g. for a one-year-old package this would be 18% or 25% of the value of the FLIT-16 in accordance with HMRC requirements).

3. Return -

You can arrange for Cycle Solutions to collect your FLIT-16 and return it.

What happens after the one year 'rental period'?

So, this is where it's slightly different to the GCI initiative. With Cyclescheme, at the end of your one year rental period they will get in touch with you to discuss your options. Basically, you have three to choose from:

1. Own it later -

You pay a small refundable deposit (either 3% or 7% of your certificate value) and continue to use the equipment for 3 years. No other payments (whatsoever) are required during this time. At the end of the 'Own it later' period, no further action or payment is required if you wish to keep your FLIT-16 - we simply retain your deposit and transfer ownership to you. Cyclescheme refunds the deposit if you do not wish to keep your ebike.

2. Own it now -

Take ownership of your FLIT-16 by paying Cyclescheme the market value (e.g. for a one-year-old package this would be 18% or 25% of the value of the FLIT-16 in accordance with HMRC requirements).

3. Return -

Return your FLIT-16 to Cyclescheme at your own cost and pay no ownership fee.

Baffled? Talk to us!

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