An update from Cyclescheme
Adrian Warren, Director at CycleScheme made a statement today Monday September the 21st 2020 that addressed the current limit of the certificate and the commotion they charge bike retailers.
Currently the Cycle to works scheme have a maximum certificate limit of one thousand pounds. That is to include the purchase of a bike and any additional equipment such as security locks and safety gear. We think it is great that they have decided to review this maximum limit, with its current standing it fails to provide the customer a big enough range in their choice as most high end cycles are well over 1k and and good quality electric bike starts at around the same price. They also want to review their commission rates. They currently charge the bike retailer 15% of your order. Which may not sound like a lot but if you consider the 20% vat, shipping, other taxes and expenses it doesn’t leave much left if anything at all for us bike retailers. So hopefully they can find a better solution that works for everybody. E Movement are also members of the Green Commute Initiative which currently has no limit and much fairer commissions to bike retailers. You can read Adrian Warren’s statement in full below.
Given the recent situation around Covid-19, cycling and cycling to work has seen an unprecedented surge in demand. As well as this, we at Cyclescheme have been instrumental in working with the UK government to remove the £1,000 cap on the value of a bike eligible under the Cycle to Work scheme. This has meant that many more people have had access to a wider range of bikes that suit their commuting needs, including pedal-assisted and adapted bikes. These changes are hugely important to support wider mobility and to make cycling accessible to everyone – something we feel very passionately about. Over the past 15 years, we have significantly invested in the compliance of our scheme. Cyclescheme participants typically save 25-39% on the cost of cycling equipment – this is inclusive of paying an End of Hire fee. This fee is charged in line with the Department for Transport (DfT) and HMRC scheme guidance to ensure there is no benefit-in-kind liability for participants. At Cyclescheme, we have historically charged an agreed percentage rate of commission for our services. But we also realise that since the £1,000 cap has been lifted and the price of bikes has risen under lockdown, this means an uncapped commission may not be the best way forward. The last thing we want to do is to treat bike shops unfairly. That’s why we have already been working directly with bike manufacturers and retailers to agree a new commission structure that means we all receive value from bike sales while also working collaboratively to continue to encourage more people to ride bicycles. Talks are ongoing, but we are confident we will have a new commission structure in place in that benefits everyone.”Adrian Warren
Last updated 14:00 Monday 21st September 2020