How it works with Cycle Solutions
You can watch Cycle Solution's summary video on how it all works here.
Below is a step-by-step guide on exactly how purchasing the FLIT-16 through Cycle Solutions works.
1. Reserve your FLIT-16 (If you haven't already):
If you haven't already, reserve your FLIT-16 by paying a £199 deposit: https://flit.bike/product/flit-16-folding-ebike-deposit/. This is refunded at the point that your Cycle to Work application has been approved and processed.
If you have paid the full amount upfront, this also acts as a deposit and is refunded at the same time.
2. Your employer buys your FLIT-16 through Cycle Solutions
On the 1st August 2020, your ebike becomes eligible for the Cycle to Work Scheme. At this point, you need to apply to Cycle Solutions for the amount that you paid for your FLIT-16 (+ accessories) plus the 12% Cycle Solutions commission.
Here's an example: if you reserved your FLIT-16 by paying a £199 deposit, you need to apply for £1,902.88 (£1,699 + 12% Cycle Solutions commission). This will be higher if you are adding accessories to your order.
Here's another example: if you reserved your FLIT-16 by paying £1,500 during our Kickstarter campaign, you need to apply for £1,680 (£1,500 + 12% Cycle Solutions commission). This will be higher if you are adding accessories to your order.
Your employer and Cycle Solutions will then review your application and pay us the total amount of your package. In turn, we pay Cycle Solutions their commission (please note that we do not benefit from adding the commission to your package as this is ultimately paid to Cycle Solutions).
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 Cycle Solutions letter of collection has been processed, you'll start making monthly payments to your employer. These payments are deducted from your salary before tax, which is why this is known as a salary sacrifice scheme.
With Cycle Solutions, your payment period is typically 12-18 months. During this payment period, Cycle Solutions technically owns the bike and you rent it from them.
Using a £1,699 ebike on a 12 month payment period as an example, and taking into account Cycle Solutions' 12% commission, you could expect the effective price after tax savings to be:
- £1,293.96 if your maximum income tax rate is 20%, saving you £405.04 (24%)
- £1,103.67 if your maximum income tax rate is 40%, saving you £595.33 (35%)
What happens after the rental period?
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 automatically transfer to you after the extended rental period finishes.
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 repayment period this would be 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.