Third party finance
The finance is a normal commercial loan to the employer provided by our finance partner, Akira Financial Ltd. The employer takes a loan for a 12-month period and repays it by monthly direct debit. The employer’s loan is always for 12 months, regardless of the salary sacrifice term. If, for instance, the salary sacrifice was over 24 months, the employer would be bridging the 12-month gap.
There is an interest charge of around 8% but this is more than covered by the employer’s 15.05% National Insurance saving which means the employer is still saving 7%.
Please note the minimum order value for finance is £1,000. This can be one or multiple orders but they all need to take place at the same time in one tranche.
If your organisation requires a finance company to finance the purchase of the voucher, please select yes to ‘Is employer finance required?’. You will then receive an email relating to finance when you submit your order.
Unless you wish to take immediate ownership of the bike, there are no fees to pay once the three month hire period has ended. If you choose to enter into the free of charge extended loan period, once this has expired after five years and nine months, we make a nominal charge of £1 to transfer the ownership title to you. This protects you from any HMRC tax charges. If you choose to take ownership before the bike has reached six years old, you will need to pay HMRC a benefit-in-kind tax based on their Fair Market Values table.
Your monthly take home pay is also known as your net pay, which is the amount you receive after tax, national insurance and other commitments are deducted from your gross pay. The salary sacrifice amounts are also deducted from your gross pay so you don’t pay tax or NI on the amount.
The salary sacrifice agreement is between the employer and employee and covers the repayment of the voucher cost. This can be for any period longer than three months that both parties are happy with. Common terms are 12, 18, 24 months but it could be for as long as 60 months.
The amount you save is based upon how much Income Tax and National Insurance payments you make. Tax and National Insurance rates vary from time to time and are different in Scotland. Please contact your payroll department for more information or visit https://www.gov.uk/income-tax-rates.
Ordering a YT bike?
If you are ordering a bike from YT Industries, you will need to order your bike on their website before submitting your GCI application. Select the Prepayment/Payment in Advance and complete the order. You will then be emailed an order number which you need to provide to GCI.
Covid-19 – Green Commute Initiative remains open.
Just like all businesses across the UK, indeed the world, we are being affected by the Covid-19 outbreak. Whilst many bike shops will remain open, many have decided to close until the situation improves. Undoubtedly, this will affect the supply of bikes into the UK market and it will also affect the ability of consumers to purchase bikes. The team at GCI will continue to process orders but we have put into place extra checks to ensure that the bike shop is able to fulfil your order. This will increase the order processing time which will result in a slight delay to your voucher being issued. We simply ask that you bear with us during these difficult and strange times. We will only pay the bike shops if we are confident that you will get your bike.
As a not-for-profit social enterprise, we are the only cycle to work provider who can guarantee the safe keeping of your bikes. GCI’s constitution prevents it from taking on debt therefore it can never have creditors and cannot become insolvent. This means the bikes are safe and will always end up with the employee. GCI is the only cycle-to-work provider to offer this. In today’s retail environment this is a vital safeguard.
The GCI Team
What if my preferred bike shop isn’t listed?
Most resellers (bike shops) are delighted to work with GCI because it’s a much better deal for them (and therefore you). Ask them to get in touch to become a registered reseller.
We cannot deal with the Halfords Group (Halfords, Cycle Republic, Tredz or Wheelies) because they will not take other provider’s vouchers as they run their own schemes. GCI supports local bike shops and therefore does not work with the big online-only suppliers.
GCI’s constitution is unique from all other providers and as such it manages the relationship between employers and GCI so that employers don’t need a separate FCA authorisation for Credit Brokering. Its as simple as that.
Unlike others, we don’t have to scaremonger to protect an outdated business. We’re offering a genuine, innovative way for forward-looking organisations to move away from the poor value cycle to work schemes of the past, enabling them to offer their employees a better cycle to work solution. This helps more people to reduce the damage we’re all doing to the environment.
Another unique aspect to GCI is bike safekeeping. This is very important because in all plus £1,000 schemes (the model which GCI pioneered) the provider is the hirer and owner of the bikes. If the hirer were to go bust then any liquidator would be forced to maximise the hirer’s assets for the benefit of creditors and that could jeopardise the bikes your employees are paying for. With many of the High Street names struggling, this should be a real concern.
GCI is the only C2W provider who is specifically set up to ensure your employees will get the bikes they sacrificed their salary for. GCI is a not for profit social enterprise. Its constitution prevents it from taking on debt so it can’t have creditors and can’t go bust. It’s a very similar mechanism to the way a trust fund works. It means you and your employees have peace of mind whatever happens with no unpleasant surprises.
What type of bicycle can I get through the scheme?
You can choose from E-bikes, road or off-road bikes, folders or cargo bikes. If it’s a bicycle under the Road Traffic Act, it qualifiers.
30-day payment terms
We offer 30-day payment terms to public bodies. After your employee has signed their hire and salary sacrifice agreements we will pay the reseller and send your employee their collection voucher. At this point you will receive a VAT invoice and the salary sacrifice agreement.
Where third party finance has been used, the employer will make the finance repayments once the salary sacrifice has started.
Third party finance
If your organisation requires a finance company to finance the purchase of the voucher, please tick the relevant box on the online form and GCI will start the process by contacting your employer and the finance company. Please note that this will slightly delay the purchase of the voucher.
If using third party finance, the finance provider will send GCI payment and will also send employer an invoice paid document and instructions on handling the VAT element.