Customers often ask the question: Do you do 0% finance and the answer is yes, on some makes, not all. But why would you choose 0% finance when you could purchase your bike through a Salary Sacrifice Scheme!
Why?
Example 1
If you purchased a bike costing £1297 though a 0% finance agreement the bike would cost you, £1297, saving you, well nothing, £0.
If you purchased the same bike through a Salary Sacrifice Scheme and you are on a lower tax bracket, over 18 months @ £49 per month, you will save 32% making the bike £882, saving you £415!
Example 2
If one purchased a bike costing £2452 through a 0% finance agreement, the bike will cost you £2452, saving once again nothing, £0.
If you purchased the same bike through a Salary Sacrifice Scheme and you are on a Higher Tax Brackers, over 18 months @ £79 per month, you will save a whopping 42%, making the bike £1422, saving you £1030!
Why wouldn’t you, it’s a no brainer as they say!
How Does it Work?
Firstly, you have to be on PAYE to be able to take advantage of any Salary Sacrifice Scheme of which there are quite a few schemes to choose from. Basically the bike is purchased through a scheme prior to Income Tax and National Insurance contributions are taken, thus you save whatever your Tax bracket percentage is on those contributions. We are here at Cycle Revival in our bike shop in Heathfield East Sussex, belong to many of the Bike Purchase scheme so if you want to take advantage of some massive savings, then contact us!
Meanwhile you could look into the Salary Sacrifice Schemes listed below, click on each logo to go and investigate each scheme. It costs nothing to your employer to belong to any one or more of these schemes, it wil only benefit them and their staff, a healthy employee is a productive employee!
If you’re not on PAYE there are still legitimate ways to save, pop in and talk to us! We’re not Tax advisers but we can point you in the right direction and then your accountant can advise you further.
Commonly Used Scheme Providers we Support
Green Commute Initiative
A Social Enterprise with a vision to get commuters out of cars and onto any kind of bike, with the dual purpose of improving both the individual’s health and wellbeing, as well as reducing the environmental impact of pollution and congestion from cars.
Cyclescheme
An employee benefit that saves you 25-39% on a bike and accessories (or even more with our offers). You pay nothing upfront and the payments are taken tax efficiently from your salary by your employer.
Bike2Work
An independent provider of the Government Cycle to Work scheme, believing that bikes are good for everybody. Because healthier, happier employees mean more productive staff for Employers.
Cycle Solutions
Cycle Solutions enables you to get a tax-free bike. By covering the cost of the bike through salary sacrifice, most people save about 39% of the cost. But, if you pay the higher-rate tax you could save more. It’s simple! Check out our video for more details
Enjoy Benefits
Offering employees the Cycle to Work Scheme enables them to get a quality, reliable bike at a significantly reduced cost.
Giant – Cycle To Work
By using the Giant Cycle to work scheme, you can get a new Giant bike or E-bike tax-free and pay over monthly instalments, making owning a new bike easier than ever.
