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 need to apply to GCI for the amount shown on your quotation including the 5% GCI commission.

Here an an example: if you’re ordering just a FLIT-16, without accessories, you need to apply for £2,098.95 (£1,999 + 5% GCI commission). This will be higher if you are adding accessories to your order.

Your employer and GCI will then review your application and pay us the total amount of your package. In turn, we pay GCI their commission (please note that we do not benefit from adding the commission to your package as this is ultimately paid to GCI).

3. Receive your collection voucher

Once your application has been processed and approved, you’ll receive a collection voucher that you need to send to us. 

We will then start preparing your ebike 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.

Using a £1,999 ebike as an example, and taking into account the GCI’s 5% commission, you could expect the effective price after tax savings to be:

  • £1,427.29 if your maximum income tax rate is 20%, saving you £571.71 (29%)
  • £1,217.39 if your maximum income tax rate is 40%, saving you £781.61 (39%)
  • £1,112.44 if your maximum income tax rate is 45%, saving you £886.56 (44%)

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.

Some useful links

Employee / Employer Information pack

GCI Flowchart

Find out more from the GCI

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