Our Bike Scheme has been developed to be really simple to
run. Your scheme can be set up on Salary Extras within a
couple of days. We suggest you appoint one person in your
HR responsible for checking the eligibility of employees
against the eligibility criteria. (Eligibility criteria
are set by the government, but you can also add some rules
of your own if you wish). You will have access to your
company and employee’s data 24/7, so the minimal
administration time can be fitted to suit you. We’ll
handle the agreements for you and they’ll be available
online for your employees to sign or view at anytime
through our Salary Extras platform. You will also be
able to view the agreements on your company administration
No. The Department for Transport have issued guidelines
that state that employees cannot do this. We have made the
bikes available in £10 increments, so that employees can
round up to a value close to the value of the bike and
Yes, provided that both add up to no more than your chosen
limit and that both bikes are used for journeys to or from
work. For example, one bike could be from home to the train
station and left there, and the second bike could be used
for the journey from the destination train station to work
and back. Alternatively, an employee may choose to have a
summer bike and a winter bike!
The company will fund the upfront cost of the equipment.
We can offer a choice of a self-funded scheme or a 3rd Party
funded option. Depending on your choice of funding and
the outcome of associated company credit checks,
you can be setting up a scheme within a couple of days.
You will be invited to review and sign your supplier
agreements on your company administration platform,
where you will also be able to view them at any time.
Once these are in place the scheme can launch.
This depends on the choice of bike supplier, and also on
the funding route. If an employee chooses Halfords or a
Halfords affiliated store and your company is offered 30
day payment terms through Halfords, then employees can have
their bikes within a matter of days. Alternatively, you can
pay pro-forma on a weekly, fortnightly or monthly basis to
suit. Once payment is cleared your order details are
forwarded to Halfords or other suppliers accordingly.
If you have chosen 3rd Party funding, then once the scheme
has closed you will be provided a finance schedule for
signature and details of the monthly invoicing. Once the
signed documents are received by the finance company and
payment has been received by us, our suppliers are
notified, and LoCs are sent out within the following
4 working days.
When running a cycle to work scheme it is important that
you do not discriminate on any grounds, and so for example,
you cannot offer the scheme to directors only or on
favourable terms to them. Employees who are on the
National Living Wage or under 18 can also benefit from the
scheme; they will automatically be advised to contact us
directly so that we can talk them through it, as the
process is different.
The equipment should be predominantly used for commuting
purposes, which includes journeys made between the
employee's home and the workplace, or part journeys
(for example, to the station), or for between one workplace
and another. Provided the equipment is used predominantly
for commuting purposes, then it can also be used during
leisure time too.
There are no set criteria for the employee to confirm they
have satisfied the "mainly for work" requirement, such as
frequency of use, miles travelled, or hours spent cycling.
Employees are not expected to keep mileage logs but
employers should make clear to them that if they do not
use the cycle mainly for qualifying journeys, they may
lose the benefit of the tax exemption. The Hire Agreement
provided for participating staff through this scheme, which
is signed by the employee, outlines this requirement,
ensuring the employee is aware of their
All employers may reclaim VAT incurred on the initial
purchase of the bikesand safety equipment.
All employers must account for VAT on bikes and safety
equipment made available to their employees via salary
sacrifice Cycle to Work arrangements.
The Office of Fair Trading (OFT) has issued a group licence
which authorises all employers to run cycle to work schemes
without each employer applying for an
Yes, you need to write to your local HMRC office and inform
them you are running a cycle to work scheme. You need to do
this after you have set the scheme up. You do not need to
seek their approval prior to setting up a scheme.
An employee can have more than one Hire Agreement for the
Bike scheme with us at any one time and our Salary Extras
platform will ensure they cannot apply for any amount over
the limit you have set
Caboodle Technology owns the equipment. The legislation that
governs cycle to work schemes quite specifically forbids the
employee to own the equipment - and therefore there can be no
automatic right for the employee to own the equipment at the
end of the Agreement. If they do, they cannot claim the
After the Agreement period is over, Caboodle may offer
to sell the equipment to the employee for it's then fair
There can be no automatic right for the employee to own
the equipment at the end of the hire term, otherwise the
Agreement is deemed to be a Hire Purchase Agreement, which
does not attract the same tax exemption. However, clearly
it is in the interests of all concerned if Caboodle does
sell the equipment to the employee at the end of the hire
period. For End of scheme options, please click on the
‘End of Scheme’ page.
If an employee leaves before the end of the scheme, they
must pay their employer any outstanding salary deductions
from their final net salary, as compensation for non
completion of the salary sacrifice. They may then have
continued use of the equipment without further payment until
the hire period expires, when they may be invited to
purchase the equipment and become the owner.
It is important that the employee is not deemed to be
given the automatic right to own the equipment otherwise
they would not be able to benefit from the tax exemption.
Employees must therefore not be offered the equipment to
purchase until the end of the hire term. In the case of
redundancy, the balance of payments due on the equipment
can be deducted from the employee's redundancy settlement.
The employer may of course choose to waive or reduce
All equipment obtained through the Bike scheme is the
employee's responsibility and it is recommended that they
take out adequate insurance to cover damage or theft,
informing the insurance provider that Caboodle Technology
as the owner, has an interest in the equipment for the
duration of the hire term. (This may be covered under an
employee's home contents insurance policy.)
Employees may benefit from 8 weeks free insurance with
Cycle Plan when using selected retailers or for a great deal
on Cycle Assist cover please
In order for us to be able to provide Bike scheme to you
free of charge, we do not make company visits.
Many cycle to work scheme providers are not interested
in dealing with small companies. Caboodle is different.
Our technology takes a lot of the administration away
making the scheme simple and easy to handle, so we’re able
to offer the scheme to companies of all sizes.
We’ll support you every step of the way and we have
dedicated lines available to support both you and your
employees if you have any queries about the scheme.
Online marketing is also provided for you to download
to promote the scheme to your employees and ensure
maximum take up.
There are no charges for running the scheme and at
caboodle we have a whole host of benefits available if
you choose to expand your benefits offering.
Possibly, although in most cases the effect is likely to be
small. However, employees need to be aware of the
implications of paying less tax and NI contributions and
accepting a reduced salary. Information on this is included
in our Salary Extras website so your employees can see it
before they apply.
They will no longer qualify for the tax relief on this
benefit. In such circumstances your payroll department will
arrange for the remaining salary reductions to be taken
from the employee’s net pay i.e. after tax and National
Insurance have been deducted. They will not be able to
return the bike until the end of the hire agreement.