Envo Ride has teamed up with one of the UK's leading Cycle to Work schemes to help you pay for the bike that you really want to ride.
Green Commute Initiative
Green Commute Initiative is leading the industry with its cycle-to-work scheme with no limits. GCI scheme participants benefit from no £1,000 spending cap and no scheme exit fees. Save up to 47%, depending on your tax bracket. Pay monthly through salary sacrifice with no added interest. Get an E-bike and help reduce congestion and pollution whilst improving your health, fitness and mental wellbeing.
Getting your new bike is simple and GCI has produced a step-by-step guide to show you how the scheme works and what you can expect at each stage. Key points are highlighted below.
To get the tax break, HMRC rules mean you will actually be hiring a bike through Green Commute Initiative Ltd (GCI). GCI is authorised and regulated by the Financial Conduct Authority and there is no purchase limit to the scheme. The bike is yours to use and keep, and at the end of the scheme GCI will follow HMRC rules so the ownership can pass to you. Unlike some other schemes there’s no sting in the tail to transfer ownership to you.
Firstly, you choose the new bike you want - make, model, size and colour - and any accessories.
Once you’ve made your choices and Envo Ride has confirmed the total price, you need to enter that information onto the GCI website; either through their Instant GCI form, or if your organisation is registered, through the Corporate GCI page.
If you’re using Instant GCI, a Pro-forma invoice is generated for a GCI voucher to cover the cost of the bike and accessories. Take this pro-forma to your HR department so payment can be made.
For Corporate GCI orders, your request will be sent to your HR department for approval and payment for a GCI voucher to cover the cost.
Your employer then pays GCI for the voucher which you will reimburse via salary sacrifice. Your company will reduce your gross (before tax) pay by the value of the voucher. This means you don’t pay tax and neither you nor your organisation pay NI on the amount of salary you sacrifice. Depending on your tax rate, you’ll save either 32%, 42% or 47% on the cost. You can normally choose a 12, 18 or 24-month repayment period; it’s up to your employer how long it will be for.
At the end of the 6 year period, under a separate agreement, GCI transfers the ownership title to you for a £1 processing fee. The £1 acts as a marker to protect you from any future claim that HMRC may make. In practice the bike is yours to do as you wish from day one and you can enter into additional or new GCI schemes at any time.
In summary, your company pays for the bike on your behalf and then you repay them by accepting a reduced salary in exchange for the benefit of the bike. Since your salary is reduced you’re not paying tax on the cost of the bike, so you’re benefitting from the Government’s green transport plan and you’re helping us all by reducing pollution and congestion.
Please be aware that your company pension scheme contributions may be affected by the scheme, so you should check with your employer.
Find out how much you can save
We have the answers
Talk to us if you have more questions about the GCI Cycle to Work scheme. We'd be happy to help.