FAQ's
Here are the answers to some questions we are commonly asked
Who are Ladybird Employee Benefits?
Ladybird Employee Benefits are a leading provider of benefits such as the Ride to Work scheme and Childcare Vouchers. It is an independent company created to help employers and employees make the most of the Government's Green Transport Plan Initiative and tax releif on CCV's. We are independent and can supply the right package of bike, accessories and safety equipment for everyone.
Can anyone join the Ride to Work Scheme?
Yes, if you are employed and are a UK tax payer.
There are some restrictions such as, anyone under 18 needs a guarantor signature too but we have the appropriate paperwork to arrange this. Also minimum wage restrictions dictate that you cannot enter into an agreement that will take your earning below the minimum wage – but don’t worry, we check this for you and will advise you accordingly.
What is the Ride to Work Scheme?
Its part of the Governments Green Transport plan initiative to encourage a ‘Greener’ Britain and a healthier workforce by offering tax incentives to individuals through their Employers to cycle to work rather than using pollution adding alternatives such a cars.
How does it work – in a nutshell?
Your Employer runs the Ladybird Ride to Work scheme and you are invited to join. You go and choose your new bike and agree to ‘hire’ it for a set period, usually 12 months. The cost of the bike, less the VAT is dedicated from you salary in equal instalments over the term of the contract thus saving you tax and national insurance on the bike.
After such time your Employer may offer you the chance to purchase this bike (for its fair market value, usually around 4% of the purchase price) and you own it out right. (this usually happens but we have to point out that it’s not obligatory on the Employers part)
That’s it – in a nutshell…
What is a salary sacrifice?
Salary sacrifice is whereby you agree to exchange part of your salary for something else which is a non-cash benefit. HMRC has various guidelines on this which we of course follow to the letter.
What happens to my salary at the end of the hire period?
You salary will revert back to the pre-sacrifice amount.
How long is the hire period?
Typically 12 months, this is decided by your Employer but it can’t be any longer than 18 months
How much can I save?
Usually, depending on your tax rate and the VAT status of your company, around 49% of the RRP. Please visit our website and use our on-line calculator to get an idea www.ladybirdeb.co.ukWhat happens at the end of the hire period?
Your Employer has the option to offer you the bike to own. This usually happens and you will have to pay fair market value to own your bike which is typically around 4% or 5% of the purchase price
Who owns the bike during the hire period?
The Employer owns the bike throughout the hire period.
What should I do if my Employer isn’t currently offering such a scheme?
Tell them you are interested in the Ladybird Ride to Work Scheme and download our information booklet and take it along to your HR manager. If you complete our on line registration form or send us an email with your Employers details we can follow it up for you.
Will it cost my Employer anything to run?
Not a penny, in fact they will save Employers National Insurance on the cost of the bike.
Will they have lots of administration to do in respect of the scheme?
No, Ladybird runs a complete administration package to ensure minimal impact on your Employer
Will I need to insure the bike?
Yes, it is your responsibility to make sure the equipment is fully insured. This can be done by adding it to your existing home/content insurance but please advise the insurer that the employer has an interest in the bike. Call us if you are unsure on 0845 3025888
How much can I spend on a bike?
Due to the blanket consumer credit agreement in place for all Ride to Work schemes you can spend up to £1,000.00 the minimum is £100.00
Can I buy accessories?
Yes, within the £1,000.00 limit you can include helmets and other safety accessories such as lights etc.
Can I spend more using my own money?
No, you cannot top up the purchase to buy a more expensive bike as it would cause ownership complications between yourself and you Employer. You must stick within the £1,000.00 limit.
Can I buy bike parts, like frame/wheels?
No, it must be a complete bike to avoid ownership issues.
Can I go to any shop for my bike?
You can't go to the big chains such as Halfords or Evans because they run their own schemes but you can go to any other bike store and obtain a quote, if they are not already signed up with Ladybird we will invite them to do so.
How many bikes can I buy at the same time?
You can buy 2 bikes, keeping within the £1,000.00 limit.
Can I buy another bike after the hire contract ends on my first bike?
Yes, you may enter into another agreement after the initial contract has expired.
Do I need to record my ‘work’ cycling miles?
No, the guidance states that you must primarily use the bike for commuting to and from work but you are not expected to record your journeys and you are permitted to use the bike for leisure purposes.
What will I need to sign in terms of contracts?
Ladybird will provide all of the necessary paperwork, you can request a sample copy if you would like, please call us on 0845 3025888
What happens if I leave the Company?
If you leave your current employment you will be required to pay in full the remaining amount due under contract. This would probably be deducted from you final pay packet.
If I get a pay rise or bonus in the hire period how will it be calculated?
Any pay increases or bonuses should be calculated on your original salary before you entered into the salary sacrifice agreement for your bike, check this with your Employer.
What happens if I am unable to work for a while?
If you find you are unable to work for a long period of time the payments for the bike will be suspended until you return to work.
Can I cancel the agreement before it ends?
No, cancelling the contract before the contract comes to an end is not an option.
Can I pay my bike off early?
No, the contract must run its course
Is there a credit check?
No
I’m self employed – can I sign up?
No, sorry – this is an Employee benefit so unfortunately it is not available to those who are self employed.
Ladybird Childcare Vouchers
