Queen Margaret University
Bike to Work Scheme FAQ’s

The Bike to Work Scheme is a Government green transport initiative which allows Queen Margaret University (QMU) to offer employees the option of hiring bicycles and cycle equipment over a 18 month period without having to pay Tax or National Insurance on the payments.

1. How does the scheme work?
2. Which Employees are eligible to use the Bike to Work scheme?
3. When Can I Join?
4. How do I choose a bicycle and equipment ?
5. What are my Edinburgh Bicycle branch opening times?
6. Can I ask to have the bike and equipment delivered even if I choose it in store?
7. Can I choose my bicycle and equipment using the Edinburgh Bicycle full mail order service or directly from their website?
8. What savings can I expect to make during the scheme?
9. How much can I spend?
10. What happens if I want a bike that costs more than £1000?
11. Is there a restriction to the bicycle I can choose?
12. Can I choose more than one bicycle?
13. Can I take full advantage of Edinburgh Bicycle's sales and offers on the scheme?
14. What bicycle equipment will be available to me for hire?
15. Can I choose just safety equipment on the sceme and not hire a bicycle?
16. What is salary sacrifice and how are the savings made?
17. Can I choose the supplier of this equipment?
18. What are the scheme rules?
19. How long will the ordering process normally take?
20. Can I cancel my order or change my choice once I have submitted my order?
21. What happens if the bike or equipment is damaged, lost or stolen?
22. What if I leave QMU before I have repaid the full amount?
23. What support do I get with my new bicycle?
24. What happens if my bicycle has a warranty problem during the 18 month hire agreement period?
25. What happens to the bicycle and equipment at the end of the hire period?
26. Will work related pay benefits be affected?
27. Do I need to keep a record of the mileage while leasing the bike during the scheme?

1. How does the scheme work?

If you choose to participate in the scheme, QMU will provide you with a bicycle or cycle equipment on loan in return for you agreeing to receive a reduced level of pay for the Period.

In order to benefit from the Tax and National Insurance savings the bicycle must be used for a minimum of 50% of the time for journeys to and from work or between work sites.

Employees are responsible for ensuring the bike is well maintained and kept in good working order.

Your employer will not be liable for any injury or accident that occurs while an employee hires the bike.

Step by step guide

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2. Am I eligible to use the Bike to Work Scheme ?

Qualifications for this benefit:

• Employee must be 16 years old or over.
• Employee must pay Income Tax via PAYE.
• The salary sacrifice does not cause the employee's wage to fall below the statutory minimum.
• The employee's contract of employment is expected to outlast the salary sacrifice period.

If you are unsure of your eligibility to join the scheme, please check with H.R.

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3. When can I join the scheme?

The scheme is open now and will remain open for the foreseeable future without a close date.

Please note that QMU retain the right to close the scheme without prior warning.

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4. How do I choose a bicycle and equipment?

Step 1 Visit the Edinburgh Bicycle Co-operative store at 8 Alvanley Terrace, Bruntsfield, Edinburghto decide on the bicycle and safety equipment you want. Remember to take along your staff photographic ID card and two recent payslips as proof of employment with QMU along with you.

Step 2 With the help of the Edinburgh Bicycle staff complete the Hire Agreement in store. You will be given a copy of the Hire Agreement for your own records to keep and Edinburgh Bicycle will post the original to QMU on your behalf for processing.

Step 3 Once you have received your voucher in the post (you will also receive a second copy of the Hire Agreement counter signed by QMU for your records), return to Edinburgh Bicycle to collect your bicycle and safety equipment on the agreed date. Remember to take your voucher and photographic ID with you. You will not be able to collect your bicycle and safety equipment without these.

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5. What are my Edinburgh Bicycle branch opening times?

The Edinburghbranch of Edinburgh Bicycle has summer opening hours and from 1st April until 30th September is open Monday to Friday from 10am until 7pm and is open on a Saturday and Sunday from 10am until 6pm.

From 1st October until 31st March, the store is open seven days a week from 10am until 6pm with late opening on a Thursday until 7pm.

The address of the branch is:
8 Alvanley Terrace
Bruntsfield
Edinburgh
EH9 1DU

The branch has ample bike locking facilities, free parking at the weekend and midweek after 5:30pm and is on a major bus route from the city centre.

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6.Can I ask to have the bike and equipment delivered even if I choose it in store?

Definitely. Simply request home delivery when you place your order at Edinburgh Bicycle and the following process will be set in motion.

• Edinburgh Bicycle will take your order and post your Hire Application toQMU.
• QMUwill confirm the hire agreement with you in writing once it has been authorised.
• QMU will forward your Voucher direct to Edinburgh Bicycle Co-op who will then contact you to arrange a convenient delivery date.

Edinburgh Bicycle offers the following delivery service:

• Between 8am and 6pm Monday to Friday: Cost – FREE
• Between 8am and 1pm Monday to Friday: Cost - £20
• Between 8am and 1pm on a Saturday: Cost - £30
  

Please note that the Salary Sacrifice Scheme does not cover delivery charges. If you don’t choose the FREE option, you will have to pay for the delivery charge as a separate transaction.

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7. Can I choose my bicycle and equipment using the Edinburgh Bicycle full mail order service or directly from their website?

Sorry, no. QMU staff must visit the Edinburghbranch of Edinburgh Bicycle.

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8. What savings can I expect to make during the scheme?

• Figures rounded to nearest 1 Penny
• ** Figures rounded to nearest £1.

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9. How much can I spend?

You can hire up to £1,000 of equipment.

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10. What happens if I want a bike that costs more than £1,000?

You cannot ‘top up’ the transaction with your own funds to acquire a bicycle costing over £1,000 under the Scheme. If you did so the employee and the employer would be sharing ownership of the bicycle so the transaction would no longer qualify for tax exemption.

However, as long as the bike costs less than £1,000 you can order a bicycle and equipment up to that value and enjoy the salary sacrifice benefits. If you require any more cycle equipment you can simply purchase it from Edinburgh Bicycle and pay for it separately.

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11. Is there a restriction to the bicycle I can choose?

The bicycle must be suitable for travelling to and from work so children’s bicycles are not available to hire under the scheme. All other types of bikes are suitable to choose under the scheme including electric bikes. Edinburgh Bicycle have up to 240 bikes on display at any one time with the opportunity to request many more from their warehouse or available to order in.

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12. Can I choose more than one bicycle?

Yes you can. Please note though that both bicycles must be for yourself and that the total value of both the bikes combined must be under the £1,000 limit.

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13. Can I take full advantage of Edinburgh Bicycle's sales or offers?

Of course! There are no restrictions or added fees to bikes and equipment featured in a sale or on offer.

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14. What bicycle equipment will be available to me for hire?

The bike must be suitable for journeys to and from work. As well as the bicycle, the salary sacrifice scheme also covers cyclists’ safety equipment, including:

• Helmets
• Bells and horns
• Lights
• Reflective clothing including jackets, gloves and over trousers
• Child Seats
• Mirrors and mudguards to ensure riders visibility is not impaired
• Cycle clips and dress guards
• Panniers, luggage carriers and straps to allow luggage to be safely carried
• Locks and chains to ensure cycles can be safely secured
• Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs

Please note the above is not a comprehensive list of what safety equipment is available to choose

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15. Can I choose just safety equipment on the scheme and not hire a bicycle?

Yes , you are entitled to lease safety equipment subject to a minimum order value of £200.

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16. What is salary sacrifice and how are the savings made?

A salary sacrifice occurs when an employee agrees to a reduction in pay in return for the employer providing a non cash benefit. The reduction comes out of the employees gross, rather than net pay. This causes a reduction in income tax and National Insurance payments, which is where the savings are made.

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17. Can I choose the supplier of this equipment?

Sorry, no, following an internal procurement exercise, Edinburgh Bicycle Co-Operative has been identified as the QMU supplier. Edinburgh Bicycle is the market leader for bicycle retailing in Edinburgh.
To visit the Edinburgh Bicycle website to view the range available or order a catalogue, use the below link:

http://www.edinburghbicycle.com/

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18. What are the scheme rules?

As the bicycle equipment will belong to QMU you must:

• Make sure that the bicycle equipment is insured. The easiest way to do this is to get it added to your household contents insurance, if it is not already covered. Replacement equipment is not available under the scheme. If the bicycle equipment goes missing or is damaged, you will still have to pay the monthly amount for 18 months.
• Keep the bicycle equipment clean and in good order.

• The bicycle equipment is used primarily by you to commute to work.
• The bicycle equipment remains the property of QMU.
  

19. How long will the ordering process normally take?

Generally speaking the bicycle and equipment will be ready for collection within 10 days of you placing the order. This allows for completion of the administration process. Equally important this allows time for the bike to be professionally assembled, checked over and tested by an Edinburgh Bicycle Co-op-trained mechanic before you receive it.

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20. Can I cancel my order or change my choice once I have submitted my order?

Once the Hire Agreement is received and authorised by the employer you are committing to the full 18 payments. The Hire Agreement is regulated under the consumer Credit Act and is not cancellable.

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21. What happens if the bike or equipment is damaged, lost or stolen?

Its important to understand that while the bicycle and cycle equipment remain the legal property of QMU over the hire period it is the responsibility of the employee who hires the bike to look after the equipment.

• If the bicycle equipment goes missing or is damaged, the employee is obliged to continue paying the agreed monthly amount till the end of the hire period.
• It is the employee’s responsibility to insure the bicycle/equipment against damage and theft.
• If you have a standard home contents insurance policy, this might cover the bicycle so check your policy document carefully.
• In particular enquire if your insurance cover is comprehensive. For instance, is the bike insured anywhere in the UK or only when left at home. Is it covered for damage or just for theft?
• It is the employee (not the employer) who is liable for any injuries or damages that can be attributed to the bike.
• Some companies such as Cycleguard, Endsleigh and CTC Cyclecover (via Butterworth) offer specialised cycle insurance cover.
• Third Party Cover is an automatic benefit of CTC membership.
  

22. What if I leave QMU before I have repaid the full amount?

You will have to repay the outstanding amount that is left to pay from your final payslip. However, this amount will not be tax-free as it will be taken from your net salary.
So for example, if you leave during the hire period and have a £300 bicycle, and you have paid £200 so far, you will have to pay the remaining £100 outstanding on the bicycle. You will not be entitled to receive the Tax and National Insurance savings on this outstanding £100. However, you will still have benefited from saving the Tax and National Insurance contributions on the first £200.
If your final salary does not cover the outstanding amount, you will be sent an invoice for the remainder of the balance.

Ownership of the bicycle remains with QMU who may then sell the bike for a full market value.
Please think very carefully before joining the scheme. If you think you may leave employment with QMU before the period of hire is over, it is not recommended you join.

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23. What support do I get with my new bicycle?

Six weeks after you collect the bike, Edinburgh Bicycle will invite you to bring it back to the shop for a free service. This check over identifies and cures loosening bolts, stretched cables and suchlike that can occur on any new bike. Your 6-week service therefore helps ensure optimal performance.

If the bike ever requires attention in the future, every Edinburgh Bicycle branch offers a comprehensive repair service. If you are interested in servicing the bike yourself, you can even enrol onto an Edinburgh Bicycle Maintenance Course at your local shop and learn how to do it yourself.

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24. What happens if my bicycle has a warranty problem during the 18 month hire agreement period?

You have the right to return the bike to the shop in full confidence that Edinburgh Bicycle are committed to solving every warranty issue swiftly and fairly.

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25. What happens to the bicycle and equipment at the end of the hire period?

At the end of the hire agreement, the University may offer to transfer the ownership of the bike to you for full market value as set out by HRMC guidelines*. (www.hmrc.gov.uk/manuals/eimanual/EIM21667a.htm) Please note that QMU cannot commit themselves to doing so, and that any subsequent sale must be pursuant to a separate agreement, entered into after the conclusion of the hire.

Employees are not required to take ownership of the bicycle at the end of the hire period. In this case, the bicycle and equipment must be returned to the University.

*Payroll will provide these figures at the time the loan agreement has been taken out.

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26. Will work related pay benefits be affected?

Yes, there may be an impact on your entitlement to benefit payments such as Statutory Maternity or Paternity Pay, Statutory Sick Pay and Working Tax Credit, as they will be calculated on your reduced pay. There may also be an impact on your state pension. We advise you to seriously consider the effect that a reduction in pay may have before you decide to join the scheme.

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27. Do I need to keep a record of the mileage while leasing the bike during the scheme?

No, you don’t need to keep a mileage record and the scheme is set up so that you do not have to notify the Inland Revenue when you join.

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