Manchester Airport Bike to Work Scheme FAQs
Please note, this page refers to the Scheme for Manchester Airport / MAG employees. If you have a different employer, they might not operate the scheme or it might be set up differently.
1. What is the Bike to Work Scheme?
The Bike to Work Scheme is a Government green transport initiative which allows Manchester Airport to offer employees the option of hiring bicycles and cycle equipment over a 12 month period without having to pay Tax, National Insurance or VAT on the payments.
2. How does the scheme work?
If you choose to participate in the scheme, Manchester Airport will provide you with a bicycle or cycle equipment on loan in return for you agreeing to receive a reduced level of pay for the Period.
In order to benefit from the Tax and National Insurance savings the bicycle must be used for a minimum of 50% of the time for journeys to and from work or between work sites.
Employees are responsible for ensuring the bike is well maintained and kept in good working order.
Your employer will not be liable for any injury or accident that occurs while an employee hires the bike.
3. Which employees can use the Bike to Work Scheme?
Employees who have contracts of employment that outlast the duration of the salary sacrifice period.
Employees must be 18 years or over. (Please note an adult may act as a guarantor if an employee aged under 18 wishes to enter into a cycle salary sacrifice arrangement.)
Employees must pay tax via the PAYE system.
Employees must not drop below the minimum wage once the loan repayment has been deducted.
Employees must have worked there six month probationary period.
4. When can I join the scheme?
The scheme is open now and will remain open for the foreseeable future.
Please note that Manchester Airport retain the right to close the scheme without prior warning at any time.
5. How do I choose a bicycle and equipment?
Step 1 Visit the Edinburgh Bicycle Co-operative store at 7 Wilmslow Road, Manchester to decide on the bicycle and safety equipment you want. Remember to take along your staff photographic ID card and two recent payslips as proof of employment with Manchester Airport along with you.
Step 2 With the help of the Edinburgh Bicycle staff complete the Hire Agreement in store. You will be given a copy of the Hire Agreement for your own records to keep and Edinburgh Bicycle will post the original to Manchester Airport on your behalf for processing.
Step 3 Once you have received your voucher in the post (you will also receive a second copy of the Hire Agreement counter signed by Manchester Airport for your records), return to Edinburgh Bicycle to collect your bicycle and safety equipment on the agreed date. Remember to take your voucher and staff photographic ID with you. You will not be able to collect your bicycle and safety equipment without these.
6. What are the branch opening times of Edinburgh Bicycle?
The Manchester branch of Edinburgh Bicycle is open seven days a week from 10am until 6pm and has late opening on a Thursday until 7pm. Between 1st April until the 30th September, the Manchester store reverts to summer opening hours and will open Monday to Friday from 10am until 7pm and on Saturday’s and Sunday’s from 10am until 6pm.
The address of the branch is:
7 Wilmslow Road
The branch has ample bike locking facilities, free parking and is on a major bus route.
7. Can I ask to have the bike and equipment delivered even if I choose it in store?
Yes, when you choose your bicycle and equipment just let the staff know you would like the equipment delivered, they will complete a delivery note with you and once your application has been authorised the Edinburgh Bicycle mail order service will contact you to arrange a suitable date for delivery.
Please note that if you do choose delivery, you will not receive your voucher. Manchester Airport will still send you the counter signed Hire Agreement but they will send your voucher direct to the Edinburgh Bicycle mail order department.
Edinburgh Bicycle offers the following delivery service:
• Between 8am and 6pm Monday to Friday: Cost – FREE
• Between 8am and 1pm Monday to Friday: Cost - £20
• Between 8am and 1pm on a Saturday: Cost - £30
Please note that if you do choose a delivery service that is charged, you cannot put this through your salary sacrifice arrangement and you must pay for this separately.
8. Can I choose my bicycle and equipment using the Edinburgh Bicycle full mail order service or directly from their website?
Employees of Manchester Airport can use the Edinburgh Bicycle full mail order service by calling the Edinburgh Bicycle mail order department. Employees of Manchester Airport cannot use the Edinburgh Bicycle website to order bikes and safety equipment under the scheme.
Choosing your bicycle equipment through mail order:
Step 1 You can view bicycle and safety equipment online at www.edinburghbicycle.com or through their mail order catalogue that can be requested by calling 0845 257 0808.
Step 2 Contact the mail order phone line on 0845 257 0808 or 0131 331 5010 and order your bicycle and safety equipment clearly quoting it is a Bike to Work Scheme purchase and that you work for Manchester Airport. Please remember to make a clear note of the total value of your order as you will need this when you sign the Hire Agreement.
Step 3 Visit your Melanie Taylor, 7th Floor, Tower Block, Manchester Airport to complete and sign the Hire Agreement. The Melanie will then contact the Edinburgh Bicycle mail order department to confirm your eligibility and that you are able to take part in the scheme.
Step 4 The mail order department at Edinburgh Bicycle will contact you to confirm a suitable delivery date.
Step 5 On the agreed date await delivery of your chosen bike and safety equipment.
9. What savings can I expect to make during the scheme?
Bike Value Monthly Reduction in Net Pay* Net Cost of Leasing the Bike**
£200 £9.58 £115. 00
£300 £14.38 £173. 00
£400 £19.17 £230. 00
£500 £23.96 £288. 00
£600 £28.75 £345. 00
£700 £33.54 £403. 00
£800 £38.33 £460. 00
£900 £43.13 £518. 00
£1,000 £47.92 £575. 00
The figures in this table assume a salary up to £43,875, after the ex VAT (at 20%) cost of the bike has been deducted. Costs are for tax year 2010/11 and a 12 month repayment period has been set. The employer is passing on the VAT saving.
Bike Value Monthly Reduction in Net Pay* Net Cost of Leasing the Bike**
£200 £8.19 £98. 00
£300 £12.29 £148. 00
£400 £16.39 £197. 00
£500 £20.49 £246. 00
£600 £24.58 £295. 00
£700 £28.68 £344. 00
£800 £32.78 £393. 00
£900 £36.88 £443. 00
£1,000 £40.97 £492. 00
The figures in this table assume a salary between £43,875 and £100,000 after the ex VAT (at 20%) cost of the bike has been deducted. Costs are for tax year 2010/11 and a 12 month repayment period has been set. The employer is passing on the VAT saving.
• * Figures rounded to nearest 1 Penny
• ** Figures rounded to nearest 1 Pound
10. How much can I spend?
You can hire up to £1,000 of equipment.
11. What happens if I want a bike that costs more than £1,000?
The maximum you can spend on your bicycle and accessories is £1,000 and you cannot spend more than this by paying additional money to Edinburgh Bicycle.
If you do require additional items that will take you over the £1,000 limit, the staff at Edinburgh Bicycle will be able to help you purchase these on a separate transaction that is separate from your salary sacrifice arrangement.
The view of the HMRC (Inland Revenue) is that if an employee was to contribute towards the value of a bike or equipment, this would be deemed shared ownership and the hire would not be covered by the tax exemption.
12. Is there a restriction to the bicycle I can choose?
The bicycle must be suitable for travelling to and from work. For this reason children’s bicycles are not available to hire under the scheme. All other types of bikes are suitable to choose under the scheme including electric bikes. Edinburgh Bicycle have up to 240 bikes on display at any one time with the opportunity to request many more from their warehouse or available to order in.
13. Can I choose more than one bicycle?
No, only one bicycle can be hired per employee.
14. Can I take full advantage of Edinburgh Bicycle's sales or exciting offers?
Yes. There is no restrictions or added fees to bikes and equipment featured in a sale or on offer.
15. What bicycle equipment will be available to me for hire?
The bike must be suitable for journeys to and from work. As well as the bicycle, the salary sacrifice scheme also covers cyclists’ safety equipment, including:
• Bells and horns
• Reflective clothing including jackets, gloves and over trousers
• Mirrors and mudguards to ensure riders visibility is not impaired
• Cycle clips and dress guards
• Panniers, luggage carriers and straps to allow luggage to be safely carried
• Locks and chains to ensure cycles can be safely secured
• Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs
Please note the above is not a comprehensive list of what safety equipment is available to choose.
16. What equipment will not be available to me for hire?
• All food and drink
• Child seats
• Boot racks
• Bicycle storage equipment
Please note the above is not a comprehensive list of what safety equipment is unavailable to choose on the scheme, but is a list that has been provided by the Department for Transport as equipment not available to hire.
A common sense approach should be taken when choosing safety equipment.
17. Can I choose just safety equipment on the scheme and not hire a bicycle?
Yes, if you do not require a bicycle you are able to hire just safety equipment on the scheme. Please note that there is a minimum spend of £200 if you do choose just safety equipment.
18. Can I hire a frame on the scheme and not hire a bicycle?
No, you are unable to hire a frame on its own on the scheme. What you hire must be either safety equipment or a complete bicycle.
19. What is salary sacrifice and how are the savings made?
A salary sacrifice occurs when an employee agrees to a reduction in pay in return for the employer providing a non cash benefit. The reduction comes out of the employees gross, rather than net pay. This causes a reduction in income tax and National Insurance payments. Which is where the savings are made.
Manchester Airport agrees to provide you with the free use of the bicycle for a set period. This is a tax free benefit and this nominated amount will not be subject to Tax or National Insurance deductions. A Salary sacrifice is a legally binding change in the contractual arrangements between employee and employer. Generally, the employment contract is amended to reduce the employee’s entitlement to cash pay on the basis that the employee receives an alternate non-cash benefit instead.
20. Can I choose the supplier of this equipment?
No, following an internal procurement exercise, Edinburgh Bicycle Co-Operative has been identified as the Manchester Airport supplier. Edinburgh Bicycle is the market leader for bicycle retailing in Manchester and stocks a fully comprehensive range of bicycles and safety equipment to choose from.
To visit the Edinburgh Bicycle website to view the range available or order a catalogue, use the below link:
21. What are the scheme rules?
As the bicycle equipment will belong to Manchester Airport you must:
• Make sure that the bicycle equipment is insured. The easiest way to do this is to get it added to your household contents insurance, if it is not already covered. Replacement equipment is not available under the scheme. If the bicycle equipment goes missing or is damaged, you will still have to pay the monthly amount for 12 months.
• Keep the bicycle equipment clean and in good order.
The following rules apply so that you don’t pay tax on this benefit:
• The bicycle equipment is used primarily by you to commute to work.
• The bicycle equipment remains the property of Manchester Airport.
22. How long will the ordering process normally take?
From the date that you order your bike, the Edinburgh Bicycle staff member will diary the bike for collection on a date that is approximately 10 days later. This is to give Edinburgh Bicycle and Manchester Airport the opportunity to carry out the necessary administration processes.
23. Can I cancel my order or change my choice once I have submitted my order?
Once the Hire Agreement is received and authorised by the employer you are committing to the full 12 payments. The Hire Agreement is regulated under the consumer Credit Act and is not cancellable.
24. What happens if the bike or equipment is damaged, lost or stolen?
It is your responsibility to insure the bike against damage and theft. If the bike is damaged or stolen the hire agreement is not cancellable and you will still be required to pay for the bicycle and safety equipment hired. If damaged, you will also be required to pay for repairs.
Bikes can be covered by your household content insurance and treated like any other possession. Check your insurance policy and make sure it covers the bike nationwide and that it pays for a replacement in case of a “total loss”.
Insurance companies such as Cycleguard, Endsleigh or Cyclecover (Butterworth) cover you in case of loss of or damage to cycle and accessories in a crash, theft of cycle and accessories and malicious damage.
25. Who owns the bicycle?
Although you will have full use of the bike for the period of the hire, in order to obtain the tax advantages it is a requirement that ownership of the bicycle remains with the Manchester Airport.
26. What if I leave Manchester Airport before I have repaid the full amount?
You will have to repay the outstanding amount that is left to pay from your final payslip. However, this amount will not be tax-free as it will be taken from your net salary.
So for example, if you leave during the hire period and have a £300 bicycle, and you have paid £200 so far, you will have to pay the remaining £100 outstanding on the bicycle. You will not be entitled to receive the Tax and National Insurance savings on this outstanding £100. However, you will still have benefited from saving the Tax and National Insurance contributions on the first £200.
If your final salary does not cover the outstanding amount, you will be sent an invoice for the remainder of the balance.
Ownership of the bicycle remains with Manchester Airport who may then sell the bike for a full market value.
Please think very carefully before joining the scheme. If you think you may leave employment with Manchester Airport before the period of hire is over, it is not recommended you join.
27. What support do I get with my new bicycle?
After six weeks, you will be invited to bring your bicycle for a free six week service to the Edinburgh Bicycle store.
Edinburgh Bicycle offer a comprehensive repair service for bicycles and also offer maintenance courses if you would prefer to do your own servicing.
28. What happens if my bicycle has a warranty problem during the 12 month hire agreement period?
When you choose your bicycle equipment, Edinburgh Bicycle Cooperative will advise you of the warranty period, as they vary with each bicycle – some bicycle frames feature a 5 year, 10 year or even lifetime warranty.
If you experience problems within the duration of the warranty period, take your bicycle back to the Edinburgh Bicycle Cooperative who will liaise with the supplier on your behalf.
29. What happens to the bicycle and equipment at the end of the hire period?
At the end of the 12-month hire period, your employing airport may seek to dispose of the bicycle equipment at a fair market value in accordance with HMRC guidelines. If you do not wish to pay the market value after the end of the initial hire, you may be given the option to extend the hire period. For example, participants may be given the option to extend the scheme for a further 3 years under a ‘Modifying Agreement’ for no further charge. At the end of the modifying agreement, your employing airport will revert to HMRC’s valuation table to arrive at a suitable and compliant market value figure.
30. Will work related pay benefits be affected?
Yes, there may be an impact on your entitlement to benefit payments such as Statutory Maternity or Paternity Pay, Statutory Sick Pay and Working Tax Credit, as they will be calculated on your reduced pay. There may also be an impact on your state pension. We advise you to seriously consider the effect that a reduction in pay may have before you decide to join the scheme.
31. Do I need to keep a record of the mileage while leasing the bike during the scheme?
No. The Inland Revenue do not expect you to keep a mileage record of your usage of the bike.
32. As it’s a benefit do I need to tell the Inland Revenue?
No. The scheme is set up so that under the current tax rules you do not have to pay tax on the benefit and therefore you do not have to notify the Inland Revenue.