Employer FAQs

Gogeta Bike is a cycle to work scheme. Cycle to work was introduced by the UK Government to get more people cycling. It lets employees pay for bikes and cycling accessories out of their gross salary, before tax and national insurance contributions, saving them money.

And because they pay for the cost of their bike by salary sacrificing the cost out of their monthly salary, it also lets them spread the cost over a year.

Cycle to work savings are typically between 24%-44% on standard retail prices, depending on your tax band. However, because Gogeta Bike has the lowest commission for retailers, they never pass on surcharges to you when using our scheme and you’ll get access to other deals (like sale bikes).

This means the savings you make are usually even greater, sometimes over 50%. To see your personalised savings, based on your salary and your bike cost, please check out our savings calculator.

Gogeta Bike charges employees a platform fee to run and manage the scheme. The gross fee is 6% on the total voucher amount. However as this fee is added to the salary sacrifice amount, employees save the tax on the fee as well, so the net effective fee cost is 3.2% -4.3% (depending on their tax band). Some employers allow employees to transfer this fee to them, as it is covered by the national insurance savings they make. You can decide this when you apply.

Remember - because Gogeta Bike has the lowest commission (and is the only cycle to work scheme endorsed by the Association of Cycle Traders) bike retailers pass on the best deals and savings to your employees, and never charge a surcharge for accepting Gogeta Bike vouchers. So we can confidently say that Gogeta Bike is the most generous cycle to work scheme for employees.

The Gogeta Bike voucher limit is completely up to you. We have a default limit of £5000, which enables employees to purchase e-bikes if they wish (an important choice for people with longer commutes).

You can adjust this limit up or down in your employer portal after you sign up. Employees cannot salary sacrifice an amount that takes them below the National Minimum Wage.

The bike is now your employee’s, for all intents and purposes. However, there is a quirk in the HMRC cycle to work guidance which states that if they were to take legal ownership of their bike and equipment immediately upon paying off the salary sacrifice amount, they would face a benefit in kind tax of 25% based on the value of the bike (see HMRC’s depreciation table which is in this article below).

Therefore, in order to ensure employees don’t have to pay benefit in kind tax and can take advantage of the full cycle to work savings, Gogeta Bike (as well as every other cycle to work scheme), enters them into an extended hire agreement whereby they hire the bike for the remaining period and at the end of that the value is negligible.

To transfer ownership we have to charge a token amount, we make this as low as possible and charge £1. We know it sounds a bit complicated but in reality it isn’t. At the end of the initial salary sacrifice term, the bike is your employee’s bike in every real sense. It’s also worth remembering - some other cycle to work schemes charge as much as 10% as a transfer of ownership fee. As we have explained, we have to charge something, but this will never be more than £1.

Unlike other cycle to work schemes, Gogeta Bike’s voucher is completely flexible, so employees can spend the balance over different transactions with different retailers.

Employees can check the balance of their Gogeta Bike flexi-voucher in their portal (they’ll be sent a link to this when their application is approved).

Gogeta is a salary sacrifice benefits provider. Our mission is to help people’s salaries go further by paying for things like nursery fees or a new bike out of their gross salary.

Our salary sacrifice benefits are simple to use and are completely cost neutral to you as an employer, allowing you to make a tangible difference to people’s take home pay without increasing salaries.

Gogeta Nursery is a workplace nursery scheme that lets employees pay for nursery bills out of their gross salary, before tax and national insurance contributions. This allows them to save between 19% and 40% (exact savings depend on their tax code).

Unlike the Government’s Tax Free Childcare scheme, which caps savings at £2000 per year, with Gogeta Nursery there is no upper limit on savings.

The Government’s Tax Free Childcare scheme saves parents 20% - but the saving is capped at £500 every three months (£2000 a year). Gogeta Nursery saves parents between 19-40% but there are no limitations on how much people can save. So, in most circumstances a parent saves much more with Gogeta Nursery over a year.

If an employee wanted to use Gogeta Nursery to pay for one child’s nursery fees and use Tax Free Childcare for an older child's after-school club (for example) that is completely fine.

Gogeta’s compliance measures are of the highest standard. Our industry leading active management protocols ensure employers form truly productive partnerships with nurseries, via their employee who acts as the company’s representative (in line with HMRC guidance). The employer representative has genuine influence over the nursery's management and care provision decisions.

Gogeta also facilitates ongoing review and governance of the nursery by the employer representative, outside of and beyond the bi-annual compliance meetings.

We are the only workplace nursery provider that has a dedicated compliance portal for employers, which stores all documentation regarding compliance reporting. This includes all minutes and actions arising from employee/nursery meetings, nursery progress against spend you are funding and any evidence of the contribution you are making to the nurseries. This rigorous approach to compliance is unique to Gogeta.

As part of the scheme requirements, employers must make a variable financial contribution of 12.5% of the parent’s fees to the nursery. This financial contribution is covered by the national insurance savings you make make, so this benefit remains cost neutral to you.

In this way, the financial contribution meets HMRC’s requirement of the workplace nursery scheme, that employers must meet a proportion of the overall costs of providing the care. We invoice you for this amount and then pay it directly to the nursery every month.

When an employee parent signs up to Gogeta Nursery, you as the employer are entering into a partnership with the employee’s nursery, and agree to pay the additional 12.5% of parent’s nursery fees per month for 12 months. For this reason, Gogeta Nursery salary sacrifice agreements run for 12 months.

It is also standard practice, as per HMRC guidelines for salary sacrifice to be effective, to set terms for at least 12 months.

That’s fine, we know many parent’s childcare needs change month by month and so their invoice and salary sacrifice amount will need to be adjusted accordingly. But we make this as simple as possible for you, the employer, to manage. When an employee makes their initial application, they’ll choose the salary sacrifice amount based on their next month’s nursery fees.

But we can adjust their salary sacrifice amount every month if required, with just 24 hours notice, based on their latest invoice. We’ll let you know of any resulting changes to payroll and work with your payroll deadlines to ensure you are notified before payroll cut off dates.

Parents pay a platform fee to use the scheme, which is added to their salary sacrifice amount. This is so we can cover the costs to manage compliance requirements of the scheme.

The platform fee works out as a net cost to parents of between 7.25-9% (depending on their tax band). All of the savings displayed in our calculators are the true savings to employees (inclusive of the platform fee).

An employee’s salary sacrifice cannot start until they have nursery fees to pay, so unless their child is already at nursery we recommend waiting until their return to work to apply. However, we recommend they let you and us know that they wish to join on their return to work, and we can ensure that their chosen nursery is signed up and ready to go as soon as they are.

If they are on maternity leave with a baby and have an older child at nursery then they can apply for Gogeta Nursery. However, they cannot salary sacrifice if the amount would take them below National Wage.

Yes. If both children are in the same nursery at the point of application, they will both be added to one initial contract. If one child is added later, there will be a separate agreements.

The employer will make an additional contribution of 12.5% of the parents total nursery costs to the nursery, as normal. As with a single application, you will need to ensure the total does not take employees below National Minimum Wage.