[Closed] Cycle scheme help

When you say self administer, you mean the business will run their own scheme and "hire" the bike to the employee? In this case, you would need to be FCA approved to offer above £1k as I understand it. I do have Cycle2Work employers documentation relating to the £1k limit removal if that clarifies it?

If you just mean using one of the existing schemes, then IME they are easy to set up and run. We're just signing off the limit increase now, think we're implementing a "no more than a month's gross salary" limit to reduce business risk (and stop me from buying a £10k bike!) Easy to do that as the voucher approval on Cycle2Work goes via HR for final sign off.

Hi Rich,

Thanks for your reply.

When I say self administer I mean that we will not being using a provider scheme like cyle2work or cycle scheme to purchase the bikes.

As I understand it these companies that offer to run it are like a middle man and send you a voucher for the bike.

We want to negotiate and source our bikes.

To offer over £1k pretty sure your business would need to be FCA approved as you're providing credit to your employees. Does not look like a quick process, and has costs attached. This is what prevented most firms from offering above the £1k limit. The guidance changed recently to confirm that the credit agreement is now between the employee and the scheme provider (rather than the employer). Since halfords et al are already FCA approved they can offer above £1k.

Most independents will take vouchers now, it does cost them 10-15% though so sale bargains are harder to come by.

Payment terms for Cycle2Work seemed ok when I looked at them, think it was 60 days, or if you ran a time limited scheme payment due after the scheme closed. So run it for 11 months and pay for your vouchers in month 12. IANAL though, think you will need one if you intend to run your own scheme above 1k