Savings
Company Savings
Your company will save money by running a scheme. Typically take up is around 5% with average order values of around £500. 13.8% of this amount can be saved by the company through employers NI savings.
Take a look at our Employer NI savings calculator below to see how much your company could save:
| Employer National Insurance Saving | ||
| Number of Employees | 500 | 1000 |
| Expected Take up | 25 | 50 |
| Average Order Value | £500 | £500 |
| Total Order Value | £12,500 | £25,000 |
| Employer NI Saving (13.8%) | £1,725 | £3,450 |
Employee Savings
Employees could save up to 42% on the cost of a cycle and cycling safety accessories for the purpose of cycling to work.
Your employees pay for the bike through a Salary Sacrifice arrangement and are in effect hiring the bike from you, their employer, and paying for this through their gross or pre-taxed pay. They are therefore able to make savings of between 32% and 42% through lower Tax and National Insurance (NI) contributions.
Take a look at our Employee savings chart below to see how much an employee could save:
|
Costing for employee for Self Funded BikeScheme | Costing for employee for 3rd Party Funded BikeScheme |
| LoC Value | £500.00 | £500.00 |
| Length of Scheme(months) | 12 | 12 |
| Monthly Repayment (per £1000)* | £83.33 | £93.39 |
| LoC Value with finance added on | £500.00 | £560.34 |
| Gross Monthly Cost | £41.67 | £46.70 |
| BASIC RATE TAXPAYER | ||
| Tax Savings (20%) | £8.33 | £9.34 |
| National Insurance Savings (12%) | £5.00 | £5.60 |
| Net Cost Every Month | £28.33 | £31.75 |
| Total Cost over 12 Months | £340.00 | £381.03 |
| Savings | £160.00 | £118.97 |
| Percentage Savings to Hire Bike | 32% | 23.8% |
| HIGHER RATE TAXPAYER | ||
| Tax Savings (40%) | £16.67 | £18.68 |
| National Insurance Savings (2%) | £0.83 | £0.93 |
| Net Cost Every Month | £24.17 | £27.08 |
| Total Cost over 12 Months | £290.00 | £325.00 |
| Savings | £210.00 | £175.00 |
| Percentage Savings to Hire Bike | 42% | 35% |
* Monthly repayment is the cost of repaying £1000 over 12 monthly payments including finance.
Get Started!
If your company has less than 1000 employees, please click on the “apply now” link to get you started.
You can have a scheme live within a matter of days if you wish, although we suggest you plan a little further ahead to maximise the opportunities to communicate the Salary Exchange message to your staff.
Either way, you are not under any obligation to go ahead with a scheme.
Apply Now