Green Commute Initiative
Life on Wheels has developed an exciting new partnership with the Green Commute Initiative.
As part of the Government's Green Transport plan, the Green Commute Initiative provides large tax savings to UK employees who use bikes as an alternative transport to cars and public transport.
High quality electric bikes and standard bikes are available under the scheme (which is not capped to the £1000 limit like standard C2W schemes). Employees pay for the bike from their gross (pre-tax) salary – saving between 32-42% off the retail price!
Have any questions or looking for advice? Telephone us on 01352 715716 or visit our showroom during open times.Key Facts Press Release
How does it work?
FAQ's / The Facts
GCI are able to exceed the normal C2W £1,000 limit because they're authorised and regulated by the Financial Conduct Authority. They're the only C2W provider who is.
Your employer buys and provides you with voucher for the hire of the equipment directly from us. You repay them the cost of the voucher via Salary Sacrifice
If you are a higher rate taxpayer you will save 42%. If you are lower rate you will save 32%.
The hire period is for 12 months.
At the end of the hire, we can’t simply give you the bike, because there will be a tax liability.
So we make you a free of charge loan of the bike. We also appoint you to dispose of the bike to a third party of your choosing at the end of the loan if you want to and when you do you pay us £1. The loan is 4 years and in practice it's your bike from day one.
No. Your salary sacrifice and the £1 fee is all you pay. Unlike other C2W providers there is no 7% of the bike value end of scheme fee.
The hire agreement between you and GCI are always 12 months. Your salary sacrifice agreement can be any term that you and your employer agree. We suggest not less than 3 months though. Common terms are 3, 6, 12, 18 & 24 months.
Since 2012 it hasn’t been possible to save the VAT. Because of the tax savings though you’re not paying the full rate of VAT.
No anything that qualifies as a bicycle under the Road Traffic Act is fine.
If you use the Instant GCI scheme then it’s normally a same day service. As soon as your employer pays for the voucher we’ll make everything happen. If you’re using Standard GCI then it may take a little longer. Your employer will have advised you.
No. All they need to do is pay the pro-forma and then reduce your salary in-line with the instructions. We take care of everything else.
You must be a PAYE payer and your employer has to buy the voucher. You also must be able to sacrifice the required amount without going below Minimum Wage.
You can have any accessories that you might reasonably require to commute. You can’t have things like GPS, GoPro cameras etc. You can’t have a dongle or anything that increases the power or speed of an e-bike because then it becomes a motorcycle and doesn’t qualify. The reseller can advise.