The cycle to work scheme

How It Works

Save at least 25% on a new bike

Tax is complicated; the cycle to work scheme is not. You choose a bike, hire it for an agreed length of time, then snap it up for a fraction of its original value. It's like a year-round sale, with interest free credit available in over 2,000 retailers nationwide.

They’ve worked hard to provide a transparent and easy to understand process. There are just four steps to go through to get a bike for work through Cyclescheme.

Save At Least
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What bike and equipment do you want? Consider your commute. How far is it? What route will you take? Be honest with yourself. What are your priorities? What accessories might you need? These are all questions you should ask yourself as you prepare to revolutionise your commute!

Firstly, decide on the package that suits you:

On the application page, you’ll be guided through a simple form that asks for your work details, contact information, and the value of the Cyclescheme Certificate you’re applying for. When you submit the form, your employer will receive a copy of your Hire Agreement.

With your application approved and paid for by your employer, it’s time to exchange your Cyclescheme Certificate for your Cyclescheme package. Contact your retailer and arrange a time to pop in and pick up your equipment. If you shopped online, your package can be delivered to an address that suits you, or you can opt for the click-and-collect service that some retailers offer.

Your salary sacrifice and Hire Agreement now kicks in. You’ll pay a set amount from your salary each month in exchange for the hire of your Cyclescheme package from your employer.

The deduction is made from your gross salary, so you make income tax and national insurance savings of 32% if you're a standard rate tax payer, or 42% if you're a higher rate tax payer.

When the Hire Agreement and salary sacrifice ends, you can keep your Cyclescheme Package by making a final payment for just a small amount. 

For a Cyclescheme package under £500, you'll pay 3% of the original value; for a package over £500, it's 7% – so a maximum of £70 on a £1,000 package. The bike remains ‘hired’ until the Cyclescheme package is 4 years old, but with no more monthly payments. Ownership can then officially be transferred to you at no extra cost.

This method of transferring ownership is why you save a minimum of 25% rather than a minimum of 32%. Many Cyclescheme participants will save more.

Ready to roll?

Get started by heading over to the calculator to check your savings