What is Cycle to work?
The Cycle to Work scheme was introduced 20 years ago as a government initiative to get more people out of their cars and cycling to work instead.
The scheme allows employees to save money on their bike and cycling gear by purchasing it through their employer from their pre-tax income. In short, this can mean savings of up to 44%!
The UK government has recently clarified the scheme's rules, making it clear that it can be used for bikes worth over £1,000, which most quality ebikes are.
Is the FLIT-16 eligible?
Yes! If you are based in the UK and your employer is signed up with one of our Cycle to Work scheme partners, then you can save up to 44% on the FLIT-16 and related accessories through the initiative.
It's worth mentioning that the Green Commute Initiative offers an Instant GCI option. With this option your employer doesn't have to register with the GCI or any other cycle to work scheme, they just have to approve your application. If your employer doesn't have a Cycle to Work partner, it may be worth chatting to them to see if this is an option. You can download the full employer briefing pack here.
How does it work for discounted and pre-order bikes?
Whilst we love working with customers to help them make savings through Cycle to Work schemes, it's important to note that the scheme providers are ultimately middle men between your employer and FLIT, and as such they take a commission (GCI 5%, Cycle Solutions 12%, Cyclescheme 12.5%) against the face value of your voucher.
For discounted bikes, such as the pre-sale FLIT-16, we have to pass these commission fees back to you to avoid making a loss.
It’s important to note that FLIT doesn’t make any extra money from this (in fact, we lose a bit), and you’ll still make a big saving using your employer's scheme.
If you have any questions about the level of savings for your particular situation then we can give estimates.
How does the scheme work?
With the Cycle to Work scheme, you pay for your bike and cycle equipment in pre-tax monthly instalments. The amount that you save depends on the income tax bracket that you fall under - higher rate tax payers will save more.
Technically, the Cycle to Work scheme provider owns the equipment while you pay the instalments, and you are effectively 'hiring' it from them. Once you have paid the final instalment, you can either pay for the equipment at what HMRC deems Fair Market Value (this is 25% after 1 year, but only 7% after 4 years), keep the equipment on a free extended hire until it has no Fair Market Value (after 6 years), or return it to the scheme provider.
How to use the scheme with the FLIT-16
1. Check who your Cycle to Work provider is
First, have a chat with your employer and find out which Cycle to Work Scheme provider they are registered with. We have agreements in place with the Green Commute Initiative, Cyclescheme, and Cycle Solutions - so you need to make sure that your employer is registered with one of these.
If they are not, then we can send you more information on how to register with these Cycle to Work providers, just email us at [email protected].
As of October 2019, you can purchase bikes over £1,000 through Cyclescheme, the GCI or Cycle Solutions. However, most employers have an internal spending cap so you should check what that is.
Finally, it's worth checking some of the details of your employer's scheme to make sure that you are happy with it. For example:
- What end of term options do they offer when your salary sacrifice ends? Some schemes require you to pay fair market value for your equipment at that point (usually c.7% of the original cost), while others let you have it for free after an extended loan that can last up to 5 years.
- What happens if you leave your current employer? You may not always be able to transfer your agreement to a new employer.
- What happens if the bike and equipment are lost or stolen? Most schemes require you to have insurance as they technically own the equipment until your agreement with them ends.
2. Reserve your FLIT-16 (if you haven't already!)
To reserve your FLIT-16 from the first manufacturing batch, pay a deposit of £199 and build your FLIT-16 via our deposit page: https://flit.bike/product/flit-16-folding-ebike-deposit/. This is refunded at the point that your Cycle to Work application has been processed and we have received your voucher/certificate/letter of collection for the full bike amount (£1,699) + any accessories.
In August, when your ebike has been built and is ready to leave the factory, it becomes eligible for Cycle to Work.
3. Apply for Cycle to Work
Contact your employer and make the Cycle to Work request through either the GCI, Cyclescheme or Cycle Solutions. Please note that an admin fee is charged by the scheme providers to process your Cycle to Work application. This is a percentage of the value of the bike, and varies based on which Cycle to Work scheme provider you go through. This admin fee must be added to the value of your ebike and accessories when you apply.
Once your application has been approved, you’ll receive a voucher/certificate/letter of collection to send to us so that we can process your order.
The process is slightly different for each provider (you can find out the exact process for each by clicking on the large orange buttons above).
4. Start saving!
Once your request has been approved by both the scheme provider and your employer, you'll be refunded your £199 deposit or the full value of your ebike if you've already paid that.
You'll then start paying for your ebike in monthly installments, but with huge savings on income tax and national insurance.