Sign up for our newsletter

Put your savings to work with Green Commute Initiative

Sponsored
16 Jun 2021
Advertisement

You’ve been researching the best-value electric bike for your needs, and you’ve added all the required accessories to your basket – but did you know it’s possible you could to save up to 42% on the price of all of it via a salary sacrifice tax benefit? Green Commute Initiative explains how

You may have heard of the Cycle to Work scheme but never considered it for your potential electric bike purchase.

If that is the case, then we have some very good news for you. If you are an employee earning a PAYE salary, you can take part in the scheme.

The scheme began – and largely still exists – to encourage people to leave the car at home more often and choose to cycle.

What better incentive than to do so on a brand-new electric bike? Green Commute Initiative is a partner you can call on to handle the paperwork, which could earn you a saving of anything up to 42% on the retail price for higher-rate taxpayers and a minimum of 32% for basic rate taxpayers.

You can even add accessories to your basket as part of the purchase. Not only can you save money, but you can also pick up your dream bike from one of over 1,500 local shops in just days.

Joanna Flint of Green Commute Initiative explains how the organisation can help those who are looking to fund the purchase of an e-bike. ‘GCI was the first scheme to have no £1,000 limit – in fact, GCI revolutionised the industry with its scheme model, so much so that the Department for Transport included our model in their updated Scheme Guidance Notes in 2019.

‘As commuter-quality e-bikes are usually more than £2,000, the traditional Cycle to Work scheme providers with their restrictive £1,000 limit simply did not work. You couldn’t get a decent e-bike for commuting, which is why GCI launched its new initiative. With GCI, any bike at any price is possible.’

Those taking advantage of the scheme participate via a salary sacrifice arrangement over a period of 12 to 60 months, as long as the employer is on board. And they should be, because the scheme benefits them as well. Employers not only save money on reduced National Insurance contributions, but a Cycle to Work scheme will enhance their Corporate Social Responsibility reports, as well as theoretically reducing staff sick days.

Monthly costs will vary depending on the value of the voucher and how long the salary sacrifice is for. To help, we’ve got the calculator out and work out some examples (see below) so you can visualise the savings based on two popular example bikes.

Number crunching

Moustache Lundi 27.1

A popular electric bike suitable for about-town jaunts and leisurely rides on the canal paths, Moustache’s Lundi 27.1 is very reasonably priced at £2,799 – but who wouldn’t want to save a little cash to spend on a set of pannier bags to adorn its racks? Here’s what you could save according to GCI’s calculator.

Salary £30,000 / Repayment period 36 months:

Price of bike/voucher £2,799
Net salary sacrifice per month £52.87
Savings £895.68
Savings per cent 32%

Salary £60,000 / Repayment period 24 months:

Price of bike/voucher £2,799
Net salary sacrifice per month £67.64
Savings £1,175.58
Savings per cent 42%

Riese & Müller Packster 70

One of the most versatile cargo bikes around, the Riese & Müller Packster 70 is admittedly pricy but considering it can replace countless car journeys with none of the motoring burden it’s a highly appealing bike even before we put the Green Commute Initiative calculator to work. So what could you save on the £5,819 retail price with the Cycle to Work scheme?

Salary £30,000 / Repayment period 24 months:

Price of bike/voucher £5,819
Net salary sacrifice per month £164.87
Savings £1,862.08
Savings per cent 32%

Salary £60,000 / Repayment period 24 months

Price of bike/voucher £5,819
Net salary sacrifice per month £140.63
Savings £2,443.98
Savings per cent 42%

• To make your own calculations of the potential savings on the gear you have in mind, head to greencommuteinitiative.uk/savings