The Green Commute Initiative (GCI) is a national 'Cycle to Work' scheme that makes it much more affordable for employees to obtain their own electric bike.
The key advantage of GCI is that it covers the full cost of an electric bike and all related accessories. That means unlike most cycle to work schemes, it is not capped at £1000 which is far too low to cover the full cost of most e-bikes.
Simply put, when you purchase through GCI, you pay for your new electric bike through salary sacrifice which can mean a saving of up to 42% on the actual retail price.
Why no £1,000 limit ?
In most cycle to work schemes, the employer hires the equipment to the employee. As GCI is authorised by the Financial Conduct Authority, it is the organisation that hires bike directly to the employee and so there is no £1000 limit.
How does GCI work?
The employer buys a voucher for the hire of a bike and provides it to the employee. GCI purchases a bike from Jurassic Electric Bikes and hires it directly to the employee. The employee repays all of the cost of the voucher via salary sacrifice.
As this is made from gross pay, higher rate taxpayers will save 42% and lower rate taxpayers save 32% of the retail price of the bike. For an electric bike that normally retails at £1500, this would mean an actual saving of £630 for a higher rate and £480 for a lower rate tax payer.
Am I eligible?
Yes, if you are a UK PAYE taxpayer, providing your employer is willing and the salary sacrifice doesn’t take you below minimum wage. Salary sacrifice agreements can be for 6, 12,18 or 24 months to help spread the cost.
What are the end of scheme arrangements?
Simply pay £1 and the bike is yours. Unlike other cycle to work schemes, there's no 7% end of scheme sting if you want to own the bike.
Further information is on the Green Commute Initiative website and reviews of the scheme are available here. If you think this would be something of interest to you or your colleagues please call us on 07796 135256 now.