Cyclescheme

Cyclescheme logo

Save money, get fit and reduce your carbon footprint!

The Cycle to Work scheme is a government sponsored initiative that encourages alternative travel and reduces our environmental impact. Not only does it reduce your carbon footprint, but also allows you to spread the cost of getting a new bike, save on Income Tax and National Insurance (where applicable) and increase your fitness.

The Open University has a partnership with Cyclescheme for the Tax-free Bike Scheme initiative aimed at getting more people on their bikes to work.

By taking advantage of some unique tax incentives available through The Open University and Cyclescheme you can save up to 47% on the cost of a new bike and cycle accessories. Actual savings will depend on your personal circumstances and rate of tax. Savings are made because salary sacrifice reduces your gross pay. This, in turn, reduces the amount of Income Tax and National Insurance that you pay each month which means up to 47% saving on the cost of your bike and/or accessories!

Bikes and/or accessories bought through Cyclescheme should be used for work purposes at least 50% of the time. This includes commute to libraries, offices, labs for meetings, lectures, study etc. on an adhoc basis.

Important to know

Please keep in mind that it may take up to 4 weeks from the time you apply to when you receive your certificate.

This is a hire agreement between the employer and employee who has purchased equipment from a third party (such as a retailer) – you do not own the equipment during the hire period. The employee pays for the hire via the salary sacrifice arrangement with the employer. Please ensure you have calculated affordability based on your monthly net pay. We cannot sacrifice salary to a level below National Minimum Wage.

The Open University’s policy is that any certificate value will be capped at £2,500 for both bicycles and e-bikes. HMRC have removed the top up facility where previously applicants could apply for a certificate = for £1,000 and then pay the bike shop the extra money if the item was higher than £1,000. An Acknowledgement of Debt form will be sent to you by email and will need signing prior to your request being approved.

If you need an accessible bike that costs more than our current cap, please get in contact with Travel-Advice with the bike & costing (you have found from a participating shop using the Cyclescheme partner finder) for this to be reviewed. 

Please visit our Cyclescheme Guidance document which provides employees with important information on how the scheme works.

Please note we will continue to review the certificate limit periodically. Last reviewed in January 2022 by a Steering Group including a member of VC.

How it works​

  1. Calculate how much you could save using the hire scheme.
  2. Find a participating retailers using the Cyclescheme partner finder
  3. Choose your bike and accessories and get a quote from the retailers
  4. Enter your details online on the Cyclescheme website
  5. Cyclescheme contacts The Open University to authorise the quote
  6. The Open University pays for the bike and Cyclescheme issues a secure certificate via email to the email entered on your application
  7.  Sign and collect click here for more information 
  8. Take your secure certificate to the shop and collect your bike

PLEASE NOTE

  • Your salary sacrifice will commence a month after your initial application has been approved.
  • Once your 12-month hire has come to an end, you will be responsible for liaising with Cyclescheme directly to transfer ownership of the bike equipment to you. More details on this can be found in our Cyclescheme Guidance document

The scheme is available to all staff on the payroll (subject to the scheme eligibility criteria) in all locations.

Unfortunately it is not available to Students or staff on temporary contracts shorter than 12 months i.e. if your contract expires in less than 12 months from the point of applying for the certificate. 

Associate Lecturers are eligible to take advantage of Cyclescheme (from 1 October 2021)

 

FAQ icon

 

Please visit Cyclescheme's contact centre for FAQs and contact details.

Please refer to the FAQ's on the Cyclescheme website for general enquiries regarding the scheme. Please visit the Open University specific FAQ's

Please visit the Information Hub on Cyclescheme for everything you need to know.