The Government, in order to encourage more commuting by bike, provide a salary sacrifice scheme whereby you can forego part of your salary each month in order to take advantage of tax and National Insurance savings on the cost of a bike and safety equipment.

The maximum purchase value available (including VAT) is £3,500 as long as your gross salary less the purchase value is no less than the national minimum wage (if you are between school leaving age and 22 years) or national living wage (if you are 23 or over).

PSD Scotland works with Cyclescheme Ltd who operate the scheme. The hire agreement is between Cyclescheme and the employee. You are asked to enter into a Salary Sacrifice agreement with PSD Scotland whereby the purchase value of the bicycle and equipment is recovered from your salary over 12 months. The deductions are taken before tax and National Insurance deductions therefore providing you with savings.

Please click on the link below which will take you to the Cyclescheme website personalised for PSD Scotland employees. Here you will find full details of the scheme and the process you need to follow. 

http://www.cyclescheme.co.uk/115146

The scheme is open to all PSD Scotland full-time or part-time Employees whose term of employment is more than the period of the agreement (12 months from the first deduction from payroll). In order to take advantage of the tax breaks that result from salary sacrifice please also note that the following criteria must be met.

1. They need to be a UK Taxpayer
2. They need to be over 18 years of age to comply with the consumer credit act legislation
3. If they are aged under 23 then they need to be earning National Minimum Wage.
4. If they are aged over 23 then they need to be earning National Living Wage

Any queries as to whether a PSD Scotland employee qualifies for the Cyclescheme within PSD Scotland can only be answered by Finance (cyclescheme.enquiries@nes.scot.nhs.uk) and not Cyclescheme.

It is important to bear in mind that the goods and the Bike are the property of Cyclescheme, but the employee is totally responsible for the Bike during the initial Hire period.

When your Hire Agreement and Salary Sacrifice ends, you can keep your bicycle/equipment by making an additional payment. Cyclescheme will contact you regarding ownership options at the end of your Hire Agreement. Please make yourself familiar with these options as they are additional costs incurred.

You can log into the Cyclescheme website and use their savings calculator to work out your personalised savings estimate.

When you purchase your bicycle/equipment you will be asked to sign a Salary Sacrifice Agreement to give PSD Scotland permission to sacrifice your salary.

Part of that agreement includes the terms of settlement of any outstanding monies should you leave PSD Scotland before the end of the initial hire period of 12 months. The outstanding monies will be recovered from your final net salary payment and any balance will be invoiced. Settlement will be taken from your Net Pay because once you leave PSD Scotland, you will also leave the Salary Sacrifice scheme, and you are no longer eligible for tax/NI concessions on the outstanding balance.

This may also include a sum equating to the fair market value at the time of the termination (to transfer ownership of the Bike to the Employee) You will be advised at the time of leaving of any purchase/administrative sums due.