BikeBiz Bicycle and cycling retail news
Cycling subscription provider BikeFlex has launched a new flexible cycle to work scheme.
BikeFlex’s new scheme is a lease where you pay a monthly rental for as long as you use the bike. This means the monthly payments are less, and as you’re not owning the bike you have the flexibility to switch bikes when you fancy a change, and without the burden of selling it.
BikeFlex is authorised and regulated by the Financial Conduct Authority.
Like car salary sacrifice schemes, BikeFlex operates as a lease where the employee gets a new bike every year or two without having to pay any deposit. The monthly cost includes bike insurance, provided by Laka, and servicing provided by BikeFlex’s network of 32 local service centres.
Cycle kit can also be included within the salary sacrifice up to 20% of the value of the lease. Lease terms are two years, but with the option to switch bikes after a year.
The bike is leased by the employee’s company, with the cost being deducted from the employee’s gross salary. The employee then pays tax and NIC based on the revised salary, thus reducing the amount of income tax and NIC they pay. For the employer, there is also the saving realised from the reduced Class 1 NIC payable on the employee’s salary, which more than covers the cost of the interest charged on the lease.
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Initially, you can choose any bike from six cycle manufacturers including Orro, Reilly, Basso, Cooper, BH and KTM, with hundreds of bikes in stock now for immediate delivery. BikeFlex is now offering the scheme to other manufacturers who will be able to promote it via their website and dealer network. OEMs should get in touch for more details.
For further information, visit https://bikeflex.co.uk/pages/cycle-to-work.
