Green Commute Initiative
GCI is the only provider able to offer a cycle scheme with no upper limit! This means you can buy any E Bike, of any price, and pay for it through salary sacrifice and potentially save you up to 42%!
Why no £1000 limit?
They are Authorised and Regulated by the Financial Conduct Authority. Being the ONLY Cycle to Work provider who is means they are the only ones who can exceed the normal £1000 limit.
How does it work?
Just like other Cycle Schemes your employer buys and provides you with a voucher for the hire agreement directly from the Green Commute Initiative. You then repay the cost of the voucher through Salary Sacrifice.
What will I save?
If you are a higher rate taxpayer then you will save 42%. If you are paying the lower rate then you will save 32%
What happens at the end of the hire agreement?
At the end of the hire GCI can’t simply give you the bike as there will be a tax liability. So they give you a free of charge loan of the bike and also appoint you to dispose of the bike to a third party of your choosing at the end of the loan. If you do choose to dispose of it only then do you pay GCI the grand sum of £1.
The loan is 4 years and in practice it’s your bike from day one.
Are there any other fees?
No. Unlike other Cycle to Work Providers there is no 7% of the bike value fee to pay at the end. Your salary sacrifice and the £1 fee is all you pay.
Can I pay over a longer period?
Yes. There are two separate agreements. The hire agreement between you and GCI and the salary sacrifice agreement between you and your employer.
Hire Agreements are always 12 months. Your salary sacrifice agreement can be any term that you and your employer agree. We suggest not less than 3 months. Common terms are 3, 6, 12, 18 and 24 months.
What about VAT?
Since 2012 it hasn’t been possible to save the VAT. However because of the tax savings you won’t be paying the full rate of VAT.
How long does the process take?
If you use the Instant GCI scheme then it’s normally same day service. As soon as your employer pays for the voucher GCI will notify Powerbikes and you can collect your new e bike!
Is there much employer administration?
No. All they need to do is pay the Pro-forma and then reduce your salary in-line with the instructions. GCI will take care of everything else.
Do I qualify?
You must be a PAYE payer and your employer has to buy the voucher. You must also be able to sacrifice the required amount without going below minimum wage.
What accessories can I have?
Any accessories that you might reasonable need to commute. You can’t have things like GPS, GoPro cameras etc. Dongles or anything that increases the power or speed of an e bike you also can’t have. If the speed or power of an e bike is increased it becomes classed as a motorcycle and therefore doesn’t qualify. If you have any questions regarding this Powerbikes will be happy to advise.
Any other questions?
If you have any other questions you can either contact Powerbikes:
Phone: 01946 690900, Email: firstname.lastname@example.org
Contact the Green Commute Initiative directly:
Phone: 020 3740 1836, Email: email@example.com