How it works with Green Commute Initiative
The Green Commute Initiative (GCI) is authorised by the Financial Conduct Authority to loan cycling equipment without a value limit. If you want to find out more, head over to their website.
It’s worth mentioning that the GCI offers an Instant GCI option. With this option your employer doesn’t have to register with the GCI, 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.
Below is a step-by-step guide on exactly how purchasing the FLIT-16 through the GCI works.
1. CHOOSE YOUR EBIKE & ACCESSORIES, THEN REQUEST A QUOTE FROM US
Choose your ebike colour, and any accessories that you’d like to add.
Email us at [email protected] with the following details to request a quotation:
– Your ebike colour
– Your chosen accessories
– Your Cycle to Work scheme provider
– Your full details (including first name, last name, shipping address, mobile phone number and your employer’s company name)
We’ll then get back to you with a quotation so that you can start your application.
2. START YOUR CYCLE TO WORK APPLICATION
Once you’ve received your quotation from us, you can start your application.
You can calculate your savings on your ebike here.
3. Receive your collection voucher
Once your application has been processed and approved, you’ll receive a collection voucher.
Please send your collection voucher to [email protected] so that we can start preparing your order.
4. Start your monthly repayments (TAX FREE!)
Here’s when you start saving!
Once your GCI voucher 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 the GCI, your payment period is typically 12-24 months. During this payment period, the GCI technically owns the bike and you rent it from them.
What happens after the term agreed?
As mentioned above, you are technically ‘hiring’ your bike from the GCI by using this scheme. This hiring period is always one year.
At the end of the one year hiring period, HMRC usually requires you to pay Fair Market Value for the ebike (25% of your voucher value). However through the GCI you can avoid this!
The GCI will allow you to loan your ebike from them free of charge for a period of five years.
After the five year period, for a nominal fee (£1) the GCI will appoint you as their agent to dispose of the bike, in practice meaning that it will be yours to do with as you wish.