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 getting it tax free, meaning that you can save up to 42%!
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! This means that if you based in the UK you can save up to a pretty tidy 42% off your brand new ebike through the initiative.
As we are selling our folding ebike as a pre-order campaign for our launch, things are slightly different to usual with how it all works, so this page just gives you a run down of the details.
How does the scheme work?
With the Cycle to Work scheme, you pay for your bike and cycle equipment over a year in monthly instalments which are exempt from tax. 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 bike 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 bike at what is deemed Fair Market Value (which is up to 25% of the original value of the bike), or the scheme provider can take it back.**
**It's slightly different if you go through Green Commute Initiative through which you buy the ebike for a nominal fee of £1 at the end of the process.
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 our which Cycle to Work Scheme providers they are registered with. We have agreements in place with Cyclescheme, the Green Commute Initiative and Cycle Solutions - so you need to make sure that your employer is registered with either of these. If they are not, below are some instructions on how your employer can register:
It's worth mentioning that more employers are registered with Cyclescheme as it has been around for longer. As of October 2019, you can purchase bikes over £1,000 through Cyclescheme, the GCI or Cycle Solutions. However, as mentioned above, with Cyclescheme and Cycle Solutions it is your employer that decides the spend limit, so it is worth checking out what that is.
With the GCI, you can purchase bikes over £1,000 no matter what, but your employer will still have to approve the request to go through the GCI.
2. Pre-order your FLIT-16 (if you haven't already!)
The amount that you pay effectively acts as a deposit for your ebike.
As soon as your ebike is assembled and ready for delivery (we'll let you know when!) 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. The process is slightly different for each (you can find out the exact process for each by clicking on the buttons above).
4. Start saving!
Once your request has been approved by both the scheme provider and your employer, you'll be refunded the original amount that you paid for your FLIT-16.
You'll then start paying for your ebike in monthly installments (pre-tax), meaning that you'll be saving up to 42% depending on your tax bracket!