Cycle to Work: new with a voucher, or used?
Outside Scotland, a voucher takes 21–40% off a new bike if you extend the hire and pay the 7% fee to own it. A used one is already discounted. Cyclesite shows you the real maths so you buy the bike that actually costs you least.
What you save (2026/27)
The Cycle to Work saving, by tax band
You pay for the bike out of your gross salary, so you save the income tax and National Insurance you'd otherwise pay on that money. At the end of the hire there's a small fee to own the bike outright, which we've already taken off. Here's the real saving on an example £1,500 bike, at the rates for England, Wales and Northern Ireland.
| Tax band | Tax + NI saving | Ownership fee (deferred) | You pay (on £1,500) |
|---|---|---|---|
| Basic rate20% tax + 8% NI | 28%(£420) | −7%(−£105) | £1,185save £315 net (21%) |
| Higher rate40% tax + 2% NI | 42%(£630) | −7%(−£105) | £975save £525 net (35%) |
| Additional rate45% tax + 2% NI | 47%(£705) | −7%(−£105) | £900save £600 net (40%) |
Illustrative, for a £1,500 bike. The fee shown is the 7% “own it later” rate, which you only reach by extending the hire for a further 3 years. Taking ownership when the 12-month hire ends costs 25% instead (£375 on this bike), which wipes out most of the basic-rate saving. Bikes under £500 sit in HMRC's lower column and pay less on both routes. Your tax band and your employer's scheme terms set the exact numbers, which your scheme provider confirms before you accept a voucher.
Scotland sets its own income tax bands, so for 2026/27 a Scottish taxpayer saves 27% at the starter rate, 28% at the basic rate, 29% at the intermediate rate, 50% at the higher rate on pay up to £50,270, 44% at the higher rate on pay above £50,270, 47% at the advanced rate and 50% at the top rate.
New vs used
A voucher isn't automatically the cheapest option
The voucher discounts a new bike. A used bike is already discounted off its original price. So the real question is simple: after the voucher and the end-of-scheme fee, what does the new bike actually cost, and is the same model going for less second-hand?
Basic rate
79%
of RRP is what a new bike really costs you, after the voucher and the 7% deferred ownership fee. If the same model used sells for less than that, used wins.
Higher rate
65%
of RRP is what a new bike really costs you, after the voucher and the 7% deferred ownership fee. If the same model used sells for less than that, used wins.
Additional rate
60%
of RRP is what a new bike really costs you, after the voucher and the 7% deferred ownership fee. If the same model used sells for less than that, used wins.
Many bikes shed a large share of their value in the first couple of years, so a one or two-year-old bike often beats the post-voucher price of a new one, especially for basic-rate taxpayers. Check the specific model before you decide:
Buying a used bike through Cycle to Work on Cyclesite
We accept vouchers from Cyclescheme, Bike2Work and Green Commute Initiative. The process differs slightly from a high-street purchase, you buy on the platform, then redeem the voucher with us.
Find a badged bike
Eligible listings carry the Cycle to Work Eligible badge. Only VAT-registered business sellers can offer it, because the scheme needs a VAT invoice a private seller can’t issue.
Tell us before you buy
Email support with the listing and your scheme provider. We confirm eligibility and reserve the bike while you arrange the voucher with your employer.
We complete the sale
We validate the voucher code, then complete the sale with the seller. Buyer Protection, with an inspection window and transit cover, is coming soon and does not cover voucher purchases yet.
Full detail, including the price cap and end-of-hire fees, is in our Cycle to Work help guide.
Browse used bikes
Every Cyclesite listing with a frame number is stolen-checked before it goes live, with real UK market pricing shown upfront. Find your model, then compare it against the post-voucher price of new.
Browse bikes for saleRun a Cycle to Work registered shop?
List your eligible stock on Cyclesite and reach buyers searching for Cycle to Work bikes in your city. Free to start, we import your inventory for you, and your bikes carry a verified dealer badge.
List your shopCycle to Work, common questions
How much does the Cycle to Work scheme save you?
For 2026/27 in England, Wales and Northern Ireland you save the income tax and National Insurance on the price: around 28% for basic-rate taxpayers (20% income tax + 8% NI), around 42% for higher-rate (40% + 2% NI) and 47% for additional-rate (45% + 2% NI). Higher and additional-rate earners there only save the 2% NI band because salary sacrifice comes off the top of their pay. Scotland sets its own income tax bands, so for 2026/27 a Scottish taxpayer saves 27% at the starter rate, 28% at the basic rate, 29% at the intermediate rate, 50% at the higher rate on pay up to £50,270, 44% at the higher rate on pay above £50,270, 47% at the advanced rate and 50% at the top rate. Those are the gross figures, and they are not what you end up saving, because you do not own the bike when the hire ends. Taking ownership at the 12-month point costs 25% of the original price for a bike of £500 or more (18% below that), HMRC’s acceptable disposal value, which on a £1,000 bike is £250. The cheaper route is to extend the hire for a further three years, after which the fee is 7% (3% under £500). Take that route and the net savings outside Scotland are about 21%, 35% and 40%. Most scheme marketing quotes the 7% without mentioning the three-year wait. Your exact saving depends on your tax band and your employer’s scheme terms.
Is a new bike with a voucher cheaper than buying used?
Once you include the end-of-scheme ownership fee, a basic-rate voucher brings a new bike down to about 79% of its RRP (65% for higher rate, 60% for additional rate), and that is on the cheaper extended-hire route. Own it at the end of the 12-month hire instead and a basic-rate voucher only takes a £500-plus bike to about 97% of RRP. If the same model, used and in good condition, is selling below that figure, used is cheaper even after the voucher. Many bikes lose a large slice of their value in the first couple of years, so a one or two-year-old bike often wins on price. Use our free valuation and depreciation report to check where a specific model sits.
Can I buy a used bike through Cycle to Work on Cyclesite?
Yes, but only from VAT-registered business sellers, because HMRC requires a VAT invoice that private sellers can’t issue. Look for the Cycle to Work Eligible badge on a listing, then contact support to redeem your voucher. Most private-seller listings are not eligible.
Which Cycle to Work schemes does Cyclesite accept?
Cyclescheme, Bike2Work and Green Commute Initiative. We add new providers as they onboard.
Is there a price cap?
Not for tax. The Department for Transport guidance says there is no limit on the value of the bike and safety kit for tax and National Insurance. A hire worth more than £1,000 needs whoever hires the bike to you, your employer or a scheme provider, to be authorised by the Financial Conduct Authority, and your employer can set its own ceiling, so check with HR before you choose a bike.
Can I pay with a voucher at checkout?
Not yet. Voucher redemption is a manual step today: you contact support with the listing and your scheme provider, we validate the voucher code, then complete the sale. Automating this is on our roadmap.