Think it sounds too good to be true? We promise you it isn’t! As part of the Government’s Green Transport Plan, employers are able to provide cycles and safety equipment to employees as a tax-free benefit. Employees hire bicycles from their employer, and can buy them at the end of the salary sacrifice period at fair market value.

The employer buys the bike and safety accessories at full retail price. The balance is recovered from a reduction in the employee’s gross salary, and employers also benefit from National Insurance contribution savings. The net result? You make a saving when purchasing through the scheme!

The government scheme does not have a spend limited, allowing you to purchase any eBike you like, however your employer may set a limit. 

The total price of the eBike is deducted from your salary in equal instalments over a period of time (typically 12 or 18 months), but since this is deducted before tax, you don't pay PAYE or NI on the income you forego. 

At the end of the term, your employer will give you the option to purchase the bike for a nominal fee.

You are responsible for maintaining and insuring the eBike during the hire period. EnviroRides offers a wide range of servicing options. Contact our EnviroRides Technical Team at services@envirorides.co.uk for more information.

We recommend that you invest in a lock with a ‘Sold Secure’ rating and get your eBike insured. If your eBike is stolen, you’ll still have to repay your employer from your net pay, without any tax savings.

Once signed, the hire agreement is non-cancellable following a cooling-off period of 7 working days from collection of the goods. This means that if an employee leaves or is made redundant from their employment during the hire period, they are obliged to pay the remaining salary sacrifice amount in full from net pay, i.e. without any tax exemptions.