How the Cycle to Work Scheme Works
The Cycle to Work scheme is a UK government initiative that lets you buy a bike and accessories through your employer, spreading the cost over 12 months via salary sacrifice, meaning you pay before tax and National Insurance.
The savings: Depending on your tax bracket, you save 32-47% on the retail price.
| Tax Bracket | Saving |
|---|---|
| Basic rate (20%) | ~32% |
| Higher rate (40%) | ~42% |
| Additional rate (45%) | ~47% |
On a £1,000 bike, that's a saving of £320-470.
How It Works Step by Step
- Check eligibility: Your employer must offer the scheme. Most large employers do; smaller ones may not. You must earn above minimum wage after the salary sacrifice deduction.
- Choose a provider: Your employer partners with a scheme provider (Cyclescheme, Bike2Work, Green Commute Initiative, etc.). Each has different retailer networks.
- Get a certificate: Apply through the scheme provider for the amount you want to spend. Your employer approves it.
- Buy your bike: Take the certificate to a participating retailer and choose your bike and accessories (helmet, lights, lock, mudguards).
- Pay monthly: The cost is deducted from your gross salary over 12 months. You never see the money, so it feels painless.
- End of hire period: After 12 months, you have options, usually pay a small "fair market value" fee (3-7% of the original price) to own the bike outright, extend the hire, or return it.
What You Can Buy
- Bikes: Any type, road, gravel, hybrid, e-bike, folding, cargo
- E-bikes: No upper price limit since 2019 (previously capped at £1,000)
- Accessories: Helmets, lights, locks, mudguards, panniers, clothing (scheme-dependent)