Green Commute Initiative (GCI) is a Cycle to Work Scheme for Electric Bikes
The Green Commute Initiative (GCI) is much better than the standard Cycle to Work scheme! It has no limit and still offers up to 42% savings.
Why no limit?
The Cycle to Work Scheme introduced by the Government all those years ago has ‘shackled’ prospective bicycle buyers for decades by enforcing an upper limit of £1,000. Historically, if your chosen bike retailed in excess of £1,000, then it simply wasn’t suitable for purchases in excess of this amount, via the Scheme.
Thankfully things have changed!
In a normal C2W scheme the employer hires the equipment to the employee. Unless they are authorised by the Financial Conduct Authority they have to make use of the exemption for C2W schemes which has a limit of £1,000. Green Commute Initiative is the only C2W provider authorised by the Financial Conduct Authority. They can hire any value bike directly to the employee. You can see their authorisation in the FCA register online.
How Green Commute Initiative works
The employer buys a voucher for the hire of a bike and provides it to the employee. GCI hires the bike directly to the employee. The employee repays all of the cost of the voucher via salary sacrifice. Plus the employer will save 13.8% employer’s NI. The salary sacrifice is made from Gross pay so higher rate taxpayers will save 42% and lower rate taxpayers save 32%.
Is this legal?
Yes! HMRC guidance specifically states: “The exemption also covers the provision of a voucher for hiring bicycles and equipment.”
Am I eligible?
Yes, if you are a UK PAYE taxpayer, providing your employer is willing and the salary sacrifice doesn’t take you below minimum wage Salary sacrifice agreements can be for 6, 12,18 or 24 months to help spread the cost.
If you’re a business owner, then the Green Commute Initiative is even easier! A very simple process opens up access to both business owners and employees any electric bike at any price but with HUGE SAVINGS!