Cycle to Work Schemes
How can I save tax and spread the cost on a new bike and all the gear?
Most companies have signed up to the Cycle scheme employee benefit schemes, which enables you to buy a bike (and all the kit you need!), spread the cost, and even better- save a lot of tax!
Initially, the government backed initiatives were set up to promote healthier and more environmentally responsible work-places but are now largely available to all as an excellent staff benefit.
Am I Eligible?
The Cycle Scheme is a salary sacrifice arrangement.
To take part in the scheme you must:
- Be 16 or over
- Be a UK Tax payer on 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)
Additional Rate taxpayer can save up to 47%
Is there a maximum I can spend?
Although there was an initial limit of £1000 when the scheme was launched years ago, most companies now have much higher limits, due to the higher costs of E bikes, which are determined by your employer based on how much you earn.
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 (can be financed their end)
- 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 (Green Commute Initiative can go to 48 months) and your employers preference.
Can I also get accessories with my voucher?
Yes! You can buy most things you need on the scheme to enhance your cycling experience.
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.
Green Commute Initiative
Bike 2 Work Scheme
How Do I Apply?
Contact your employer to ask which scheme
Contact us for more info or to reserve your bike