What's the end-to-end process for setting up and running a cycle to work scheme?
Setting up and running a cycle to work scheme is easy.
This is because Cyclescheme is easy to set up and simple to use.
✋ Helping hand
This answer is going to run through the end-to-end process in a semi-exhaustive way - that means that if you're just looking for the basics you may find our answer ' How does the cycle to work scheme work for employers?' more useful.
The end-to-end process for setting up Cyclescheme:
- You need to register as an employer. To do this you must have the authority to enter into a legal agreement on behalf of your workplace. The process will take about 5 mins.
- During registration you will need to enter your workplace name, address, your number of staff and (if you have it to hand) VAT number. You can decide whether to pass on your National Insurence Contributions savings to your employees and you will need to nominate an administrator and (if they are different) accounts and payroll contacts (you can have as many contacts on the system as you like).
- Once registered you will be prompted to set up a password for your new MySchemes account. MySchemes is where you'll be able to manage all your cycle to work implementation and administration. As part of your registration, you will be assigned an employer code - this is a code that is unique to your workplace and that will ensure your employees apply to the correct scheme.
- Once logged in, you will be able to promote your scheme. You can send customised 'welcome' emails to your colleagues from the account, or create a custom poster with your logo and scheme details or you can download generic resources like eFlyers, web text, copy and paste emails or web banners.
- Now your employees know about your scheme they'll start to apply. They can do this by simply logging onto www.cyclescheme.co.uk and entering your organisation's name or employer code. Once logged in they hit 'START APPLICATION' and fill in the details of their request.
- You (the employer) will now be alerted to the request via email. Cyclescheme will prompt you to log into MySchemes and review their request. You will need to check that the employee is eligible to join the scheme - this chiefly means that they are over 18 (or over 16 and have a guarantor) and that their new salary sacrifice will not take them below National Minimum Wage (NMW) or National Living Wage (NLW).
- Once approved, Cyclescheme will issue you with an invoice for their request. It's important that this is paid quickly as the employee will be highly engaged at this point and excited to get their new bike and starting to cycle to work.
- Once the invoice is paid, Cyclescheme will issue the employee an eCertificate. This includes a redemption code that will enable them to securely collect their bike from their chosen retailer. The employees Hire Period will start now.
- Now that your employee has their bike and/or accessories it's time for you to set up the salary sacrifice via payroll. You'll be emailed the correct details but you can also find them in the employee's Certificate record on MySchemes. Simply pass this to your payroll team with a request for it to be applied as a new salary sacrifice. The key thing for the payroll staff to consider is that the scheme requires a reduction (as opposed to a deduction). The most straightforward way to apply the reduction is as a ‘negative adjustment’ to the employees' gross pay. The required duration of the reduction will be stated in the email we send you (and available via MySchemes), many systems use an ‘effective dated’ system, or a ‘reducing balance’ facility. So if the reductions are over 12-months, then the salary will automatically revert after that period (or when the balance reverts to zero). If neither of these elements is available, then a simple diary note will be needed.
- At this point your obligations as an employer are complete. Your employee has their equipment, your organisation is recouping the cost (tax efficiently) and there are no other requirements.
- At the end of the Hire Period, Cyclescheme will contact the employee and manage their Ownership Options. At the end of the scheme, the employee will have saved between 25-39% (or more with offers) and the employer will have saved up to 13.8%.
You can search to see if your workplace is signed up using the search box on Cyclescheme's homepage.
You can invite your employer to register using Cyclescheme's simple invite your employer tool.
You can register as an employer via Cyclescheme's employer section.