Break free from horribly congested, polluted car commutes with a tax-free e-Bike. A revolutionary new cycle to work scheme is making it happen. With no £1,000 limit, any bike of any value is possible.
The Green Commute Initiative (GCI) is an improved solution over the standard Cycle to Work scheme. It has no practical limit and still offers up to 42% savings.
Why no £1,000 limit?
Like a normal C2W scheme, the employer hires the equipment to the employee. Unless they are authorised by the Financial Conduct Authority, they must make use of the exemption for C2W schemes which has a limit of £1,000.
Green Commute Initiative (GCI) is the only C2W provider authorised by the Financial Conduct Authority. So, they can arrange the hire of any value bike directly to the employee. Their authorisation can be found on the FCA register.
The Green Commute Initiative principle
- The employer buys a voucher for the hire of a bike and associated equipment and gives it to the employee.
- GCI hires the bike directly to the employee.
- The employee repays the full cost of the voucher via salary sacrifice.
- The salary sacrifice is made from Gross pay so higher rate taxpayers will save 42% and lower rate taxpayers save 32%.
- The employer will save 13.8% employer’s NI.
Is this legal?
Yes – the HMRC guidance specifically states:
‘The exemption also covers the provision of a voucher for hiring bicycles and equipment.’
What is the eligibility?
The scheme is eligible to any UK PAYE taxpayer, of a willing employer where the salary sacrifice doesn’t take them below minimum wage.
Salary sacrifice agreements can be for 6, 12,18 or 24 months to help spread the cost.
For efficiency, GCI have now arranged for the process to be completed on-line. This can take less than an hour to submit and approve. This process is known as Instant GCI
How Instant GCI works
- The employee gets a quote for the equipment they would like to hire from Ride Electric.
- The quote and the employee information is entered on the Instant GCI form on their website. When this is submitted, they will produce a pro-forma invoice to the employer for a hire voucher.
- When the invoice is paid, they then send the employee the salary sacrifice and the hire agreements for electronic signature. This can be completed on a smartphone, tablet or PC.
- The employee sends the signed salary sacrifice agreement to the employer along with our invoice, marked paid, for the hire voucher, GCI then authorise Ride Electric to release the bike to the employee.
End of scheme arrangements
GCI will make the employee a free loan of the bike when they pay a nominal £1 charge. They then appoint them as an agent to dispose of the bike to a third party of their choosing.
So, if they want to own the bike, there is no benefit in kind charge or 7% end of scheme requirement.
About Green Commute Initiative
GCI is a Social Enterprise and their constitution prevents them from taking on debt therefore they are a secure organisation whose assets are protected.
Green Commute Initiative Ltd is authorised and regulated by the Financial Conduct Authority for consumer hire. Reg. No: FRN 755361
Their website for more information and links to HMRC and the FCA details. They can be contacted on:
T: 020 3740 1836
No registration required
Instant GCI precludes the need for a business to pre-register. Applications can be submitted by an employer at any time.
Ride Electric will aid with bike and equipment choices, provide quotations and even help complete the online application.