Cycle to Work Schemes
What is the Cycle to Work Scheme?
The Cycle to Work Scheme is a government initiative designed to incentivise greener and healthier commuting by bicycle.
The scheme allows you to buy a new bike while saving money and spreading the cost with tax free payments.
Am I Eligible?
The Cycle to Work Scheme is a salary sacrifice arrangement.
To take part in the scheme you must:
- Be 16 or over
- Earn at least minimum wage after the salary sacrifice has been taken from your pay
- Be paid and taxed via Pay As You Earn (PAYE) system
How much can I save?
Basic rate taxpayer employee can save up to 32%
(20% Income Tax and 12% NIC)
Higher rate taxpayer employee can save up to 42%
(40% Income Tax and 2% NIC)
Is there a maximum I can spend?
Originally when the scheme was launched there was a maximum of £1,000.
Due at least in part to EBikes this limit has now been removed.
Your scheme's limit is defined by your employer.
How Does the Scheme Work?
There are several schemes available. They vary slightly but the overall process is the same.
It’s a simple process:
- Your workplace registers with a scheme provider
- You choose the bike you want
- Your employer pays for it
- You pay your employer back through monthly instalments taken through payroll
Instalments are in the form of a salary sacrifice so are deducted from gross earning before tax and NI are deducted.
Minimum term is 12 months but can be longer dependent on which scheme and your employers preference.
The Green Commute Initiative offer terms up to 48 months (as agreed with the employer) as they are registered with the FCA for Consumer Hire.
Can I also get accessories with my voucher?
Eligible equipment includes cycles for active travel and cyclists' safety equipment.
There is no definition given to safety equipment in regards to the scheme but this can include:
• Cycle helmets which conform to European standard BSEN1078
• Bells and bulb horns
• 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 the cycle can be safely secured
• Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs
• Replacement parts to keep a cycle roadworthy
• Adaptations for disability/mobility issues
• Reflective clothing or reflective cycle equipment, e.g. spoke reflectors
Below are the main Cycle to Work Scheme providers that we work with. If you want more information on any individual scheme, please select the relevant 'More Information' link below.
How Do I Apply?
Contact your employer to ask which scheme
Contact us for more info or to reserve your bike