If so you could be paying less tax and national insurance. Do you cycle to work? Effective Spring a bicycle

Transcription

1 Do you cycle to work? If so you could be paying less tax and national insurance. Effective Spring 2012 a bicycle

2 6 Welcome to the i-choose cycle scheme which offers you the opportunity to select a brand new bicycle and safety accessories, make Tax and National Insurance Contribution savings and allow you the benefits of better health and no parking hassles when you get to your place of work! 6 So what savings can I make? (Rates correct at the time of publication) The value of the bicycle and any safety accessories is reduced from your monthly gross salary (before tax and National Insurance Contributions). The saving you make is the amount that you would have paid in Income Tax and National Insurance. Below is a table showing the estimated savings that can be made if you are a basic rate taxpayer who pays 10.6% National Insurance Contributions for the tax year 2012/13 and doesn t contribute to the current NHS Pension Scheme. If you are a higher rate taxpayer and/or a member of the NHS Pension Scheme you could potentially save even more. 6 Choice of bicycle and accessories The scheme will allow you to select a bicycle and safety accessories up to a maximum total of 2,000. The bicycle you choose must be used for part of your commute to/from work, but you are free to use it during your leisure time as well. Safety accessories will include items such as a helmet and lights. The extra items excluding safety equipment must not exceed 50% of the value of the bike. 6 What items are excluded? The following cannot be included in the package. Child seats, child trailers, car bike racks, undergarments. These are only examples if you are unsure about an item that you wish to include please contact the i-choose Co-ordinator. 6 When can I join the scheme? You can only join the scheme during an enrolment window. Enrolment window dates are advertised through the Trust s recognised channels and the BUG website, or you can contact the i-choose Coordinator. Total market value of package , , Monthly salary sacrifice amount (80% of value divided by 11 months) Fair Market Value* Total Annual Gross Cost of salary sacrifice (80% of value) Annual tax and National Insurance savings * For illustrative purposes only and based on the assumption Sheffield Teaching Hospital decides to transfer ownership at an estimated value of 25% of the original market price of the package. This would therefore be the cost to take ownership of the bicycle and safety accessories. It should be noted that the fair market value may differ from this illustration and subject to valuation on a case by case basis. Net annual cost to you Actual annual savings

3 6 How do I take part? 1 Find your local i-choose a Bicycle Partner Retailer from the list below. 2 Visit your chosen retailer and select the bicycle and safety accessories of your choice, up to the maximum limit of 2,000, and fill in an Order Form (these are available at the i-choose Bicycle Partner Retailers). 3 Fill in the Application Form available from the i-choose coordinator, or download it from the Trust s intranet. 4 Send your Order Form and completed Application Form to the Payroll Department for authorisation. 5 The i-choose Co-ordinator will issue you with a Hire Agreement which you need to complete and return to the i-choose Co-ordinator. 6 Once your Hire Agreement has been received it is a legal requirement to allow a 7 day cooling off period to pass, this would be your final opportunity to cancel your enrolment. 7 A Purchase Order will be raised and a copy will be sent to you. 8 Contact your chosen retailer to make arrangements for collection. 9 Take your copy of the Purchase Order to your chosen retailer and take delivery of your cycle and safety accessories. You will be asked to provide proof of identity by producing your STH ID badge. Your bicycle and safety accessories can be selected from any of the following i-choose a Bicycle Partner Retailers. Please note the Trust does not endorse any individual cycle provider. Tony Butterworth Cycles Catchbar Lane, Sheffield S6 1TA Tel: Tony Butterworth Cycles offer a 5% discount on bicycles up to 500 and a 10% discount on bicycles over 500 and on accessories. Decathlon 199 Eyre Street, Sheffield S1 3HU Tel: Decathlon offer a 10% discount on bikes and 20% discount on safety accessories. Edinburgh Bicycle Co-operative 300 Broadfield Road, Sheffield S8 0XQ Tel: Edinburgh Bicycle run regular offers, promotions and discounts, 20% off accessories in custom builds, a free Revolution tote bag with each bike, a free Revolution aluminium water bottle with each Revolution bike and a free six week service for all bicycles. Eighteen Bikes The Old Stables, 8 Castleton Road Hope, Hope Valley S33 6RD Tel: Eighteen Bikes will honour any discounts or sale items and there may be discounts on some custom builds.

4 J E James Bramall Lane Sheffield S2 4RN Tel: The Old Fire Station Progress House Erskine Road Brimington Road North Rotherham S65 1RF Chesterfield S41 9AP Tel: Tel: J E James offer a 10% discount to STH staff. La Bicicleta 54 Greystones Road Sheffield S11 7BN Tel: alex@labicicleta.co.uk Web: La Bicicleta offers 10% of the cost of the bike in accessories, free of charge. Langsett Cycles Ltd Infirmary Road Sheffield S6 3DH Tel: Fax: Langsett Cycles Ltd offer a 10% discount to STH staff. Planet X Unit 6, Ignite Business Park Magna Way Rotherham S60 1FE Tel: info@planet-x-bikes.com Web: Racescene Sheffield Road Barnsley S70 4PG Tel: Fax: Racescene offers a personalised measuring service which enables them to supply the correct sized bike and set up for the most efficient and comfortable position. They will provide a free helmet and accessory pack (under saddle bag including tubes, tyre lever, pump and multi tool RRP value of 100) for any bike acquired through the scheme. The Bike Tree 289 Abbeydale Road South SheffieldS17 3LB Tel: info@thebiketree.co.uk The Bike Tree offers a 10% discount on bikes and a 15% discount on accessories. 6 How does it work? Suppose you selected a bicycle and safety equipment and receive a quote from your i-choose a Bicycle Partner Retailer for 1,000. You will be able to salary sacrifice 80% of the total cost of the bike and equipment. For the next 11 months your gross salary will reduce by each month (80% of 1,000 i.e. 800 divided by 11). Sheffield Teaching Hospital has chosen to divide the annual cost by 11 to ensure that the monthly reduction from salary is as low as possible. If Sheffield Teaching Hospitals chooses to transfer ownership a final payment of 250 (assuming a Fair Market Value of 25% was confirmed) would be taken from your final net pay in the 12th and final month. The final deduction of the fair market value cannot be salary sacrificed as this transaction is used to pass the ownership to the employee.

5 6 Having selected a bicycle value, if I then decide I want a different value, can I change my selection? No, the amount cannot be changed once the Purchase Order has been sent to the retailer and the Hire Agreement has been signed. 6 If I enter into the agreement, can I stop this benefit before the end of the scheme period? No. This benefit will run for the duration of the hire period. 6 Can I join the cycle scheme if I am less than 18 years of age? Yes, although it will be necessary for an adult to act as guarantor in respect of the hire agreement. 6 Can I join the scheme if I earn close to the National Minimum Wage (NMW)? A salary sacrifice must not take an employee s pay below the National Minimum Wage. If you earn close to the NMW but would like to participate in the cycle to work scheme please contact the i-choose Coordinator for details of how you will be able to obtain a cycle through the salary sacrifice scheme, or another arrangement with the Trust. 6 What happens if I leave Sheffield Teaching Hospitals during the term? You must inform the i-choose co-ordinator immediately when you are made aware that you will be leaving the Trust. If you leave Sheffield Teaching Hospitals you will remain liable to pay the amount outstanding that you would have paid should you have remained employed until the end of the period of hire. This payment will be taken from your final net salary. At the end of the period of hire, for a final payment equal to the fair market value, Sheffield Teaching Hospitals may at their discretion transfer ownership of the bicycle to you. More information can be found in What happens at the end of the agreed payment period. 6 What happens at the end of the agreed payment period? Although you will have full use of the bicycle, Sheffield Teaching Hospitals will own it for the duration of the scheme. At the end of the period of hire, Sheffield Teaching Hospitals, at its absolute discretion, may decide to transfer the bicycle to you for its fair market value at that time. Following the recent guidance from HMRC the fair market value will be in the region of 25% of its original value when selected (although this value will be decided on a case by case basis and may differ from the 25% indicated in the illustration).

6 If you don t want to buy the bike at the end of the agreed payment period there will be a charge levied onto you equal to 10% of the original value, for Sheffield Teaching Hospitals to dispose of it. 6 Safety & Security You should always lock your bicycle when leaving it unattended and the Trust strongly suggests that you insure your bicycle. If the bike can no longer be used i.e. through damage or theft then effectively you have left the scheme and all outstanding monies must be paid from net salary. It is very important to insure the bike and any goods fitted to it, to safeguard against the losses following theft or damage. Please check with your insurance company that your bike is insured when you take it away from your home. Your household insurance may only cover bikes which are stolen from your home address. For a small fee you may wish to register your bicycle on the Nationwide Cycle Registration at STH recommends that all cyclists wear a helmet and you should comply with the laws and cycling guidelines set out in the Highway Code. Cycle training may increase your confidence and make your cycling easier. All STH employees are entitled to a free of charge 2 hour training session available from Pedal Ready in conjunction with Sheffield City Council. Contact Claudia Morris (the Travel Plan Coordinator) on Ext or claudia.morris@sth.nhs.uk for details. 6 Contacts and further information i-choose Coordinator: (STH Ext 52427) Travel Plan Coordinator: (STH Ext 66001) Bicycle User Group (BUG): Visit the Sheffield Teaching Hospitals NHS Foundation Trust bicycle forum on: Home.aspx

7 Contacts and Further Information More detailed information on salary sacrifice itself is available on the general i-choose leaflet which should be read in conjunction with this leaflet before deciding if this scheme is for you. You can contact the i-choose co-ordinator on (STH ext 52427). Revised February 2012