How it works
Your employees don’t technically buy the bike but hire it from Caboodle Technology over a period of 12 or 18 months. Your company will fund the upfront cost of the equipment and reclaim the funds from employees through salary sacrifice. We can help sort out the financing for this if you need it and the cost of the finance can be recouped from your employees’ monthly payments. So, ultimately the scheme won’t cost your company anything to run.
At the end of the hire period Caboodle will arrange transfer of ownership of the bike and accessories to the employee for a nominal amount representing the value of the goods at that time. This is explained in more detail on the ‘end of scheme’ page.
Your employees will be able to access all the information they need to make a decision before joining the scheme through our Salary Extras website. They’ll need to register on the site and an online calculator tool will let them see the cost before they apply.
Once they’ve applied, a legally binding hire agreement will be generated and this is stored on the employees account for them to refer to if they need it. The agreement gives the employer permission to reduce the employee’s pay by the agreed amount, and the right to deduct from final net pay any outstanding amounts from the employee in the event of them leaving the company before the end of the hire period.
A Letter of Collection (LoC) will be sent to them and they’ll use this to pay for the bike and accessories from their chosen retailer in the Cycle2Work network of over 1,500 bike shops.
The scheme is designed to be as simple as possible with the minimum amount of admin. Through the administration site, you’ll be able to view and approve your employees’ applications. You’ll also be able to access a payroll report to help you make the right deductions from your employees’ pay.
Promoting the scheme
It’s essential to raise awareness of the scheme to ensure maximum take up. Through the administration site, you’ll be able to download marketing materials to help you to promote the scheme.