Cycle Scheme

Cycle Scheme


Cyclescheme operates on behalf of NES to provide this salary sacrifice scheme to NES employees.  NES purchases the bicycle and accessories at full retail value and the employee then hires the goods from NES.

Monthly loan repayments are recovered from your salary prior to the deduction of tax and National Insurance. At the end of the loan period, the ownership of the goods reverts to Cyclescheme, with an option to purchase the goods at a Fair Market Value payment. This allows you to save the cost of the tax and national insurance deductions from the value of your purchase. However, please be aware that a salary sacrifice scheme means your salary, for the purposes of mortgage applications etc, is reduced by the loan amount until repaid.

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

http://www.cyclescheme.co.uk/33586d

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

  • They need to be a UK TaxpayerThey need to be over 18 years of age to comply with the consumer credit act legislation.
  • They need to be earning more than the National Minimum age after their salary has been reduced. An example is : Someone works 15hrs and gets £325. You take the deduction of 83.33 (Max Allowed) off his monthly wage. £325.00 - £83.33 = £241.67 then divide by  his hours worked. £41.67/15 = 16.11. If this is more than the minimum wage of £6.19 then he is entitled to join the scheme.

Any queries as to whether a NES employee qualifies for the cyclescheme within NES 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 NES but that the employee is totally responsible for the Bike during the initial Hire period.

At the end of the initial Hire period of 12 months ownership reverts back to Cyclescheme. Employees may be given the opportunity to buy the bike and any safety equipment/accessories for a fair market value. No guarantee of this option or any indication of the purchase price to be paid, can be given at the commencement of the hire agreement.

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

Under the terms of the hire agreement and the Credit Consumer Act, the agreement to pay your employee's loan is non-cancellable. This means you would need to settle all outstanding monies should you leave NES before the end of the initial hire period of 12 months. The outstanding monies will recovered from your final net salary payment.

Settlement will be from your Net Pay because once you leave NES, you will also leave the Cycle scheme, and you are no longer eligible for tax/NI concessions on the outstanding balance. You will also be charged a termination fee. The termination fee will not exceed a value equal to the outstanding monthly reductions but 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 advised at the time of leaving of any purchase/administrative sums due.