Bike Flex launches car salary sacrifice lease model for bikes

Cycling subscription provider Bike Flex have announced the launch of a flexible cycle to work scheme similar to a car salary sacrifice lease.

Unlike existing cycle to work schemes, where you spread the cost of the retail purchase price of the bike, BikeFlex’s new scheme is a lease where you pay a monthly rental for as long as you use the bike. This means:

• Monthly payments are reduced
• Riders have flexibility to change bikes whenever they’d like, as they don’t owning the bike
• No burden of selling the bike at the end of the contract.

BikeFlex is authorised and regulated by the Financial Conduct Authority, and is the first cycle to work scheme to operate like the popular car salary sacrifice leases.

As prices of bikes have increased, and with most eBikes costing over £2.5k, employers may be less keen on funding the full bike purchase from their company balance sheet, particularly with the current economic climate, presenting a significant challenge to the traditional cycle to work scheme

It’s here that BikeFlex steps in.

• Like car salary sacrifice schemes, BikeFlex operates as a lease where the employee gets a new bike every year or 2 without having to pay any deposit.
• The monthly cost includes bike insurance, provided by Laka and servicing provided by BikeFlex’s network of 32 local service centres.

Cycle kit can also be included within the salary sacrifice up to 20% of the value of the lease. Lease terms are 2 years, but with the option to switch bikes after a year.

The bike is leased by the employee’s company, with the cost being deducted from the employee’s gross salary. The employee then pays tax and NIC based on the revised salary, thus reducing the amount of income tax and NIC they pay. For the employer, there is also the saving realised from the reduced Class 1 NIC payable on the employee’s salary, which more than covers the cost of the interest charged on the lease.

Initially you can choose any bike from 6 cycle manufacturers including Orro, Reilly, Basso, Cooper, BH and KTM, with 100s of bikes in stock now for immediate delivery.

BikeFlex are now offering the scheme to other manufacturers who will be able to promote it via their website and dealer network.

OEMs should get in touch for more details.

Tim Hammond – 07415 407079   [email protected]

Russ Downing – 07969 339631    [email protected]

On the launch of the new leasing model, Tim Hammond comments, “Its great for employees who are not restricted by a price cap, great for employers who simply pay a monthly lease in lieu of part of the employee’s salary, and great for bike manufacturers who now have another new channel to offer their higher end bikes and eBikes.”