Cyclescheme is the UK's most popular cycle to work benefit, creating more cyclists than any other provider.
Cyclescheme is the UK's most popular cycle to work benefit, creating more cyclists than any other provider.

Great news, employers wishing to offer a higher limit on their cycle to work scheme can now do so!

The Department for Transport's (DfT) guidance has always stated that employers can loan cycle to work packages worth up to £1,000 to their employees due to the Office for Fair Trading's (OFT) blanket consumer credit license. The great news is that employers can now exceed this limit by utilising their own Financial Conduct Authority (FCA) Authorisation.

Rider

 
This means that Cyclescheme is able to work with employers to offer schemes with no £1,000 limit whilst ensuring full compliance with DfT, HMRC and FCA guidance.  
 
This excellent development means that employees can save on the full value of any bike or cycle to work package.

Riders will be able to get the kit they need

inclusive of their preferences or circumstances

Committed Cyclist e-bike rider

Committed Cyclist

E-bike rider

A cyclist that rides every day come rain or shine can get 1 or more great bike(s) and all the high-quality gear they need. E-bikes are changing the way we travel but they remain expensive, now obtain them at a fraction of their RRP.‚Äč
 
Adapted and specialist cycles The basics

Adapted and
specialist cycles

The basics

Adapted and specialist cycles are often unique and created in low numbers meaning they were expensive. Although you can certainly get a bike for less than a grand, basic Bromptons were at the limit.

The new scheme limit benefits all manner of riders.

From the returning cyclist getting an e-bike to help them reengage with cycling (and re-energise their commute) to the everyday rider that needs a great bike and all manner of high-quality dependable kit... everyone can benefit!

The opening up of the limit is also fantastic for cyclists with different needs, be it hand cycles, adapted bikes or tricycles - every strain and variety of bike under the sun now has the added benefit of becoming cheaper and more accessible.

A case in point...

Brompton

Since the scheme launched twenty years ago we've seen the price of the trusty Brompton folder increase dramatically - this iconic and perfectly formed machine is at the heart of every cycle to work scheme. Freedom to ride means that commuters can get the Brompton that suits their needs and all the kit they need to go with it at once (and save money on the lot). This was almost impossible using the original scheme. 

Example savings

Freedom to ride means employees can save on the total cost of the package, not just the first £1,000. This means that although the savings haven't increased or changed employees will now be able to save more on bikes or cycle to work packages with a value over £1,000.

An example of this is shown below: 

 

Before FCA introduced

After FCA introduced

Increase

Cost of bike

£1,850 

£1,850 

 NA

Lower rate taxpayer saving 

£250 

£462.50 

85% or £212.50 

Higher rate taxpayer saving 

£350 

£647.50 

85% or £297.50 

Setting up a cycle to work scheme over £1,000

For employers wishing to offer a higher limit for their Cycle to Work scheme (above £1,000 per employee) they must obtain what's termed 'Authorisation' from the Financial Conduct Authority (FCA). Think of it like a credit check on your business. You can find out more on the FCA website by clicking here.
 
Your organisation may already be ‘Authorised’ for the ‘Consumer Hire Business’ permission (the relevant permission for entering into a hire agreement for Cycle to Work). You can search the public ‘Financial Services Register' to see if your organisation is covered here.
 

TIP: Try different variations of your organisation name, e.g., if we search for 'Cyclescheme Ltd' there is no match found, but 'Cyclescheme' is a match, as our name on the FCA site is listed as 'Cyclescheme Limited'
 
If your organisation is a council or local authority, you may not need authorisation - contact us and we'll help you understand if you're able to proceed or not. 

If you're not already authorised, applying for ‘Authorisation’ from the FCA for your Cyclescheme provision is simple and straightforward.

Please note:
 
• The 'Authorisation you require for Cyclescheme is 'LIMITED PERMISSION'
• The Permission category you require is 'CONSUMER HIRE BUSINESS'
• The FCA Fee Block for Limited Permission is 'CC1'
 
There are some other items of information you will need in order to complete your application. To assist you with this, the FCA has created a handy 'Credit Ready Checklist' for Limited Permission application. You can download a copy here.
 
Once up and running with FCA Authorisation you can increase the maximum Certicate value above £1,000. It only takes a few seconds to change the limit; please contact us for more information.