How do I save money?

The total amount for the bike and accessories is deducted from your salary for a fixed period (typically 12 or 18 months). As the payments are deducted from your "GROSS" salary, it means you do not pay Income Tax or National Insurance. Typical savings for employees are between 32% for basic rate taxpayers and 42% for high rate taxpayers, but the actual amount depends on the employee’s personal tax band and the way the employer runs their scheme.

Who actually owns the bike?

The bike and equipment remain the property of the employer throughout the hire period, unless the employer uses a finance company to fund the bikes; in this case the finance company or funding bank will own the bikes.

Does the bike have to be used for commuting?

Employees should use the bike mainly for commuting to and, if relevant, between work places (at least 50% of the bike’s use should be for work purposes). However, the bike can also be used for non-work purposes and there is no need for employers to monitor individual usage or for employees to keep a mileage log. Please note that employees cannot claim business mileage allowance with a bike that is being hired to them by their employer.

Who is responsible for maintaining the bike and what happens if it is stolen?

It is your responsibility to maintain and insure the bike during the hire period. Mosquito Bikes offers a fully equipped workshop for routine servicing and any repairs you might need. If the bike is stolen during the hire period you will need to replace it, we advise purchasing a 'Sold Secure' product in addition to insuring the bike.

What happens at the end of the hire period?

At the end of the hire period employees may be given the opportunity to buy the bike for a fair market value, though this is not an automatic entitlement. The fair market value cannot be stated before or during the hire period as this could be considered a benefit in kind and therefore not be eligible for tax benefits. Many employers opt for one of the schemes to take ownership of the bikes at the end of the hire term and offer a sale to the employee via the scheme.

What happens if an employee leaves their job or is made redundant?

Once signed, the Hire Agreement is non-cancellable following a cooling-off period of 7 working days following collection of the goods. This means that if an employee leaves or is made redundant from their employment during the hire period they are obliged to pay the remaining salary sacrifice amount in full from net pay i.e. without any tax exemptions.