Cyclescheme Partner Store Training Manual by Cyclescheme LTD

Cyclescheme

Training Manual

Cyclescheme

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX

/ 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

Tel

Training Manual

Contents The Process

2 Reference

Welcome to Cyclescheme

Employee journey

Partner Stores

Visit

Quotation

3 4 5

Welcome to Cyclescheme

/ Eligible safety equipment / Certificates

The Extranet 6 7

/ Savings

/ The Extranet

/ Managing Certificate requests

8–9

/ Enrolment

/ Redeeming Certificates

Cyclescheme is the UK’s leading provider of tax-free bikes for the Government’s Cycle to Work initiative. It’s a brilliant programme where everyone wins - employees make big savings on new bikes, employers get a healthier, more motivated workforce and independent bicycle dealers across the UK gain access to tens of thousands of customers that make up the ever-growing Cycle to Work market.

/ Details

/ Ordering quotation pads

/ Partner Store report

/ Administration

What the report looks like

Date range and downloading

Statistics

Top employers

Percentage market share in detail

/ Certificate

/ Collection

13 14

/ Redemption

/ After sales

/ End of Hire

/ Extended Use Agreement

/ Ownership

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

Cyclescheme work with over 25,000 employers across the country from sole traders and small businesses, right through to major employers like ASDA, RWE nPower, Sainsbury's and the BBC. We also represent ⁄ of the UK’s Police and Fire & Rescue Services and over 200 councils. Our experience, cutting-edge technology and commitment to independent bicycle dealers is what keeps us ahead of the market and results in very successful Cycle to Work schemes. This booklet will take you through the Cyclescheme process from an employee’s perspective. From application through to End of Hire, we will follow the journey an employee makes when signing up to Cyclescheme. To make things a little more personable, we’ll hand over to our good friend, Bob.

Employee journey Bob was keen to take advantage of the Cycle to Work scheme his employer was running with Cyclescheme. At a benefits event Bob was told he could find a list of his local bike stores by entering his postcode into the Cyclescheme website at:

www.cyclescheme.co.uk/partners

Partner Stores

5 When Bob entered his details he was shown a list of local stores. This list included links to his local Partner Store’s profile pages. Profile pages display lots of useful information about Bob’s local stores including:

Bob was also able to check his potential savings with Cyclescheme’s savings calculator. The calculator allows Bob to accurately check his savings and decide what his budget is prior to visiting a Partner Store. Bob had been thinking about getting a bike worth around £400 RRP, but after using the savings calculator he realised he could actually afford to sacrifice more from his salary than he originally thought, giving him a budget of £600 RRP to spend. To check his savings and see how much he could spend, Bob had visited:

www.cyclescheme.co.uk/calculator The savings calculator is also very handy for low wage earners. Major supermarkets can turn down as many as 1 in 5 Cyclescheme requests because the amount an employee has requested to sacrifice from their pay would take them below NMW (National Minimum Wage).

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

Shop codes Addresses Phone numbers Websites Top brands

Visit

6 Bob noticed J.B’s Bikes was only a few miles away and looked like a great store, so he decided to visit and found the staff to be extremely helpful. They showed Bob what kind of bike would suit his commute and had a great range of accessories to make his journey as safe and secure as possible.

Quotation After visiting the store, Bob decided to get his bike from J.B’s Bikes, so he asked a member of staff for a Cyclescheme quotation. He had his heart set on a road bike with a lock and light set. The helpful member of staff filled in the quotation on Bob’s behalf and made sure it had all the details he would need on it (the quotation pad is supplied to J.B’s bikes by Cyclescheme and is designed specifically for Cyclescheme participants). One of the most important items on the form is the ‘Shop code’. This code allows Bob to associate his Cyclescheme request with the correct J.B’s Bikes store. It also means J.B’s Bikes will be alerted if he goes on to enrol and allows them to follow Bob’s progress on the scheme. Quotation pads can be ordered from the Extranet. To replenish your stock, please log in to: https://myaccount.cyclescheme.co.uk

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

Savings Now Bob had decided on the bike package he wanted, he visited the Cyclescheme website to check over the savings he could make. Bob made sure to use the unique web address his employer had supplied. The web address is very similar to the normal Cyclescheme website, the only difference is that Bob included his employer code in the address. In this case, Bob’s employer code is 5d33, so as a result he entered:

www.cyclescheme.co.uk/5d33 Bob wasn’t completely sure how his savings worked, but soon got to grips with it once he’d used the Cyclescheme calculator and read through the FAQs. Bob realised that the key to understanding how he would save money through Cyclescheme was in understanding how he pays tax.

Bob found out he could save on 2 forms of tax; income tax and employees’ National Insurance Contributions (NICs). Income tax and employees’ National Insurance Contributions (NICs) are expressed as a percentage and applied to participants’ gross salary amounts. The tax deductions are then made and what the participant gets in their pocket is NET salary.

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

Savings This is the clever bit; the effect of reducing Bob’s gross pay is that it also reduces his taxable salary. As his earnings are lower, he pays less tax. The result? Bob pays less income tax and NICs when he signs up to Cyclescheme. For a standard rate taxpayer like Bob, savings are on average 32%; for higher rate taxpayers that savings can be up to 42%. Here’s the bike package Bob would like, along with how it will affect his pay.

Enrolment After Bob had checked his savings online, he went on to request his Certificate. By clicking on the ‘Request your Certificate’ link (only visible when an employer code is entered in the web address - confirmed by the employer name appearing in the top right hand corner of the website) Bob was able to begin the application process.

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

Details

Bob worked his way through the request process online. It took him roughly five minutes. He was asked for some personal details like his address, phone number and email address. He also had to enter the details of the quotation he had received from the store and was then asked to agree to an online ‘Hire Agreement’.

Administration

Bob had now completed all the actions that he needed to enrol on the scheme. The administrator of his employer’s scheme automatically received an email requesting authorisation for Bob’s application. Once Bob’s administrator had confirmed his application, Cyclescheme sent an invoice to his employer’s payroll department.

Certificate

It took Bob’s employer fourteen days to process and pay the invoice for his Cyclescheme request (fourteen days is the average amount of time it takes for an employer to pay a Cyclescheme invoice). The day after the invoice was paid Bob’s Certificate was sent out by first class post (his employer could have also opted for his Certificate to be sent electronically, by email. This is called an eCertificate. eCertificates are sent the day after payment is received by Cyclescheme). The Certificate stated that it was valid for sixty days - this was to encourage Bob to collect his bike as quickly as possible. The Certificate itself, however, does not actually expire. At this point Bob courteously gave J.B’s Bikes a call to arrange a good day to collect his bike.

Bob

LO CK L IGHTS

600 00 40 00 30 00 30 00

700 00

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

Collection

Bob took his Certificate to J.B’s Bikes and presented it to a member of staff. The member of staff asked to see some approved photographic ID - they requested either a driving licence or passport. Once the member of staff had checked Bob’s ID he was asked to sign his Certificate in order to confirm he had received the bike and safety equipment. If Bob had used an eCertificate, the member of staff would of needed to validate the eCertificates redemption code using the Extranet (see page 23 for more details). Bob should not sign or hand over his Certificate in advance of receiving the bike for any reason. Cyclescheme reserve the right to remove Partner Stores who collect Certificates in advance of supplying Participants with their bikes. Just before Bob left the shop a date for his first free service was agreed for roughly 6-weeks time.

Redemption

Now that Bob had collected his bike and safety equipment, J.B’s Bikes could redeem his Certificate in order to collect payment from Cyclescheme. J.B’s Bikes could do this in 2 ways: 1

/ Redeem the Certificate online via their Extranet account Redeeming online is instant, secure and free. It speeds up payment and saves time. More information about online redemption can be found on page 23.

/ Redeem the Certificate through the post Redeeming through the post requires a member of the J.B’s Bikes staff to place the Certificate in an envelope, address it to Cyclescheme and pay for it to be posted. Cyclescheme Certificates should be sent to the following address: Finance Department, Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX

Cyclescheme will always endeavour to pay J.B’s Bikes as quickly as possible to aid their cash flow. Cyclescheme self invoice at the point of redemption and will always pay within 5-days of that process occurring (usually quicker). Please note that if Bob did not have his bike and safety equipment, there would be no acceptable circumstances whereby J.B’s Bikes or any Cyclescheme Partner Store would be allowed to redeem his Certificate. Redemption must always happen after collection and never before.

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

After sales

Bob visited the J.B’s Bikes store again after six weeks to have his free service. He had forgotten that every regular cyclist needs padded shorts, a thermal top and a pump! The friendly store assistant made sure that he left the store with these essential items ensuring J.B’s Bikes an extra top margin sale.

End of Hire

Once Bob’s Hire Agreement had come to an end, he received an email from Cyclescheme giving him three End of Hire options. Cyclescheme have a fantastic solution that allows Bob to protect his tax savings and ensure he retains the use of the bike. 1

/ This is Cyclescheme’s preferred option for Bob and is called an Extended Use Agreement (EUA). As Bob’s bike was over £500 he could pay a one-off deposit of 7% (inc. VAT) of his original Certificate value. This would allow Bob to continue to use the bike for a further three years whilst making no other payments. During this period of time the bike depreciates in value to the point where it’s HMRC approved value is equivalent to the deposit he has paid. After 3-years Cyclescheme may, at its discretion, offer ownership of the bicycle to the employee and no further action or payment will be required if they wish to keep the bicycle. If Bob’s original Certificate had been less than £500, he would only need to pay a deposit of 3% (inc. VAT) of the original Certificate value. Extended Use Deposit (EUA) deposit for Bob = £48.99 If the Extended Use Agreement didn’t suit Bob’s needs he could choose between two other options: / Bob could purchase the bike at the end of his initial hire period (usually 12-months). The HMRC approved value would be 25% (inc. VAT) of Bob’s original Certificate value. This is because his original Certificate was over £500, if his Certificate had been less than £500 he would have to pay a lesser amount of 18% (inc. VAT) of his original Certificate value.

Market value payment for Bob = £174.99 / The other option is for Bob to return the bike to Cyclescheme at Bob’s own cost. Cyclescheme always try to encourage participants to take advantage of the Extended Use Agreement as this is the most attractive option. Cyclescheme have created an easy to understand video that explains how our end of hire options work, see it here:

www.cyclescheme.co.uk/help/end-of-hire-process-video

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

Extended Use Agreement

Bob wanted to get a bit more information about his options so he popped back to J.B’s Bikes to discuss his preference with a member of staff. Bob mentioned he was keen to save the maximum amount of money but had concerns about the length of the Extended Use Agreement, the friendly member of staff ran through a quick overview for him: •

Hang onto the bike and you will make the best savings.

•

There’s no downside to transferring ownership after a longer period.

•

A small, refundable deposit secures continued use of the bike, regardless of employment status. Bob can change jobs with no knock-on effect or extra costs.

•

Bob can get another bike once his initial hire period is up (usually 12-months).

•

The deposit percentage charge includes VAT - the misconception is that you pay this on top.

•

As Cyclescheme remove the helmet and original VAT, sometimes Certiﬁcate values as high as £600 can fall into the 3% (inc. VAT) deposit category.

•

The ongoing rental payments are zero.

As a result, Bob chose to take advantage of the Extended Use Agreement (EUA). Bob also raised an eyebrow when the member of staff mentioned his ability to get a new bike on the scheme. Bob has been working in the city a lot recently and a folding bike might make his inner city commute more manageable. The friendly member of staff made sure Bob left with confidence in the EUA and a couple of great folding bike catalogues too!

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

Ownership

Once the three years has elapsed, Cyclescheme will contact Bob to see if he would like to purchase the bike. If the answer is yes, Cyclescheme will retain Bob’s deposit and transfer the ownership of the bicycle to Bob. If not, Bob can return the bike to Cyclescheme and claim back his deposit.

Eligible safety equipment

Eligible equipment includes bikes and cyclists' safety equipment. The tax exemption defines a "cycle" as 'a bicycle, a tricycle, or a cycle having four or more wheels, not being in any case a motor vehicle'. An electrically assisted pedal cycle can be included under the scheme. Cyclists' safety equipment is not similarly defined in the legislation and a common sense approach should be taken to the equipment provided. This could include:

Certificates Cyclescheme paper Certificates are full colour, mid-weight, matte printed with a number of unique security features. Cyclescheme does not share all these security features with bikes stores, but the salient features to check are: • Security water marking • Wavy lines which are hard to replicate and do not photocopy

•

Cycle helmets which conform to European standard EN 1078

• Edge to edge printing

•

Bells and bulb horns

• Distinctive feel

•

Lights, including dynamo packs

•

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

•

Child safety seats

•

Locks and chains to ensure cycle can be safely secured

•

Pumps, puncture repair kits, cycle tool kits and tyre sealant for minor repairs

•

Reflective clothing along with white front reflectors and spoke reflectors

Items that Cyclescheme do not allow include: •

Footwear and clothing which is not speciﬁcally for cycling

•

Triathlon and competitive racing equipment

•

Turbo trainers

Child seats are allowable under the scheme but understand that ‘tag-a-longs’ and child trailers are not. Please remember, participants are not allowed to request second hand bicycles or singular components through the scheme. Bikes processed must be new and come complete with a full UK warranty.

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

If you are in any doubt as to the validity of a Certificate, please check the validity using the Extranet or contact Cyclescheme. eCertificates Should a client request it, Cyclescheme has the ability to send eCertificates. Where eCertificates are used, the participant will be sent a simple email that includes confirmation they can collect their bike, their Certificate reference code and a redemption code. Where a participant has an eCertificate it is vital that the Partner Store validates the redemption code at the point of sale. The liability for doing this rests with the Partner Store, as they would be required to indemnify the Participant in the case of a fraudulent redemption. eCertificates speed up the time it takes for a Participant to process and collect their bike and aids cash flow for the Partner Store.

The Extranet The Extranet is Cyclescheme’s business-to-business site (B2B). It is an area where Partner Stores can manage their active and historic Certificate requests, redeem Certificates in advance of posting them to Cyclescheme, view all of their invoices, remittances and credit notes and order new quotation pads. Logging on to the Extranet

Managing Certificate requests

The Extranet allows Partner Stores to view all the Certificate requests that have ever been associated with their store. This can be done by clicking on ‘Manage Certificates’ on the left hand navigation menu. You will now see a list of your clients Certificate Requests. The Certificate reference is shown on the left-hand side, if you click on it you will see all the details relating to that request.

Partner Stores can log on to the Extranet by visiting:

https://myaccount.cyclescheme.co.uk

You will require your log in details to access the Extranet. You would have been sent these when you enrolled as a Partner Store. If you have forgotten your password please follow the ‘Trouble logging in?’ directions. Or contact Cyclescheme directly on 0844 879 5101. You can have multiple accounts for different staff if you wish.

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

One of the most useful items of information the Extranet shows Partner Stores is the current status of each request. An overview of what each status means is shown below: •

Requested: Date Certificate was requested

•

Declined: Date Certificate was declined

•

Cancelled: Date Certificate was cancelled

•

HA sent: Date Hire Agreement was sent to participant

•

HA received: Date Hire Agreement was received by Cyclescheme

•

Ordered: Date the Administrator agreed to the request

•

Invoiced: Date the employer’s accounts department was invoiced

•

Issued: Date the Certificate was sent from Cyclescheme to the participant

•

Redeemed: The date the Partner Store redeemed the Certificate on the Extranet

•

Received: The date the Certificate arrived back with Cyclescheme for processing

•

Funds received: The date the funds from the Employer were received in our bank

•

Dispatch agreed: Some schemes have an agreed Certificate dispatch date. These are rare.

•

Remittance created: The date the Partner Stores payment remittance was created

•

Paid: The date the Partner Store was paid

Redeeming Certificates

Online redemption takes place on the homepage of the Extranet. Should you need to navigate to this page, click on your stores name in the navigation menu on the left hand side of the screen. You start the process by entering the Certificate number in the ‘Check or redeem a Certificate or iGo Bike Gift Voucher’ text box then clicking ‘Make request’.

You will now find yourself on the Check Certificate page. If it is a normal Cyclescheme Certificate then it will show you the bike and equipment details that the participant logged at the point of request. If the participant has changed their equipment from what is described, you must contact Cyclescheme so that we can update the Certificate’s details prior to redemption. If all is well and the bike and equipment description matches that shown on the Extranet then you need enter the redemption code in the ‘Redemption code’ text box. You will also need to enter the ‘Frame number’ at this point.

The redemption code is shown on the physical Certificate and is clearly identified. It can also be emailed to participants; where this is the case and a conventional Certificate is not handed over in exchange for a bike and equipment package, it is imperative that the Partner Store validates the redemption code by redeeming it online prior to releasing the bike and equipment package.

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

Ordering quotation pads

Partner Stores can order up to three new quotation pads by navigating to the bottom of the Extranet home page. You can select the number of units you need then order them by clicking on ‘Request quote pad’.

Partner Store report

The Partner Store report is a comprehensive tool that will allow you to better manage and understand your Cyclescheme Certificate sales. Below is a table that broadly shows you the different segments of the report and their uses. Report

How does it help?

Statistics

The statistical element of the report displays a range of analytical data that shows you your Cyclescheme Certificate sales breakdown. This includes averages, totals, up-spends and top selling model information.

Top Employers

This report tells you which employers constitute the majority of your Cyclescheme Certificate sales. It shows you the units and value of these sales by volume and percentage as well as what percentage of your top employers total Cyclescheme Certificate sales you account for (i.e. if you account for 25% of ‘Joe B’s Accountants’ total Cyclescheme Certificate sales this means there is a potential 75% remaining for you with that employer).

Top Brands

This report tells you which brands constitute the majority of your Cyclescheme Certificate sales. It shows you the units and value of your sales by volume and percentage.

How to find the report

You can view the report by clicking on ‘Partner Store report’ in the navigation menu.

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

What the report looks like

The Partner Store report is shown in the image below. It is broken down into three different segments; ‘Statistics’, ‘Top Employers’ and ‘Top Brands’. The report also includes a tool that allows you to change the date range and to download the report in a number of different formats. Over the following pages the report will be broken down and explained.

Date range and downloading

You can choose a range of different dates for the report. You just need to click on the ‘Choose dates’ tab; this will then produce a drop down menu displaying the different date ranges available. These include: •

All (default)

•

Last month

•

Last year

•

Previous years (2007, 2008, 2009, 2010, 2011 etc.)

Statistics

The statistics segment of the report gives you a top line overview of your Cyclescheme Certificate sales within your specified date range.

Definition of terms:

The option to ‘Download’ the report is also displayed in this section of the report. You can download it in three different ways: •

PDF

–

This format is a non editable but visually attractive

•

XLS

–

This is a rich spreadsheet format usually edited in Microsoft Excel

•

CSV

–

This is a basic spreadsheet format usually editable across a number of programs

All you need to do in order to trigger a download is click on the icon with your format preference.

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

•

Number of Certiﬁcates: Your number of Certificates

•

Total value of Certiﬁcates: Your total value of Certificates

•

Total value of bikes: Your total value of bikes (without accessories)

•

Average Certiﬁcate value: Your average value of Certificates

•

Average bike value: Your average bike value (without accessories)

•

Average helmet value: Your average helmet value

•

Average other value: The average total value of the items which are neither bikes nor helmets

•

Highest Certiﬁcate value: Your highest value Certificate

•

Lowest Certiﬁcate value: Your lowest value Certificate

•

Top model: Your most sold bike by unit

•

Total up-spend: The total value of your sales other than the cost of the bike (helmet and accessories)

•

Average up-spend (all Certiﬁcates): Your average up-spend across all Certificates

•

Average up-spend (with accessories): Your average up-spend across Certificates that include at least 1 helmet or accessories sale

Top employers

Percentage market share in detail

In the case of ‘Test Store’ the report shows that they account for 0.31% of Example Company B’s total scheme, this means that ‘Test Store’ knows that they do not account for 99.69% of Example Company B’s Certificate sales and as such they should be trying to attract more employees to their store.

This report shows you your top Cyclescheme employers based on: •

Certiﬁcates: The number of Certificates you have processed with a certain employer.

•

Percentage of Certiﬁcates: The percentage that these Certificates represent as a portion of your entire Cyclescheme Certificates.

•

Total Certiﬁcate value: The value of Certificates you have processed with a certain employer.

• •

Percentage total value: The percentage that this value represents as a portion of your total Cyclescheme Certificate sales. Percentage market share: The percentage of an employer’s total Cyclescheme Certificate sales, which you account for.

Cyclescheme Ltd, PO Box 3809, Bath, BA1 1WX Tel / 0844 879 5101 Fax/ 0844 409 9464 psl@cyclescheme.co.uk

•

Certificates - The number of Certificates you have processed with a certain brand.

•

Percentage of Certiﬁcates - The percentage that these Certificates represent as a portion of your entire Cyclescheme Certificates.

•

Total bike value - The value of bikes you have processed with a certain brand.

•

Percentage total value - The percentage that this value represents as a portion of your total Cyclescheme Certificate sales.