Cycle 2 Work Scheme

The Cycle to Work scheme is a government-backed initiative that allows employees to purchase a bike and accessories through their employer, with payments taken directly from their salary before tax and National Insurance. This can save you up to 42% on the cost of a bike and equipment, making it an affordable way to start cycling.

There are two main types of cycle to work schemes available – the traditional voucher scheme and the newer, more flexible ‘salary sacrifice’ scheme. The voucher scheme is where your employer provides you with a voucher to redeem against a bike and accessories from a participating retailer. The salary sacrifice scheme is where your employer purchases the bike and equipment on your behalf, and you pay it back over a set period of time through deductions from your salary. Both schemes have their pros and cons, so it’s important to choose the one that’s right for you.

What is a Cycle to Work Scheme and how does it work?

A Cycle to Work Scheme is a UK government initiative that allows employees to purchase a bike and/or cycling accessories through their employer, with payments taken from their salary before tax and National Insurance. This can save employees up to 42% on the cost of a bike and equipment.

Who is eligible for a Cycle to Work Scheme in the UK?

Most employees in the UK are eligible for a Cycle to Work Scheme, although employers may have their own eligibility criteria. Generally, you must be a UK taxpayer and earn above the National Minimum Wage after the salary sacrifice has been taken.

How much money can I save through a Cycle to Work Scheme?

Through a Cycle to Work Scheme, you can save up to 42% on the cost of a bike and accessories.

What types of bikes and equipment can I get through a Cycle to Work Scheme?

You can typically use a Cycle to Work Scheme to purchase a wide range of bikes, including road bikes, mountain bikes, hybrid bikes, and electric bikes. You can also purchase accessories such as helmets, locks, lights, and panniers.

How long does the payment period last for a Cycle to Work Scheme?

The payment period for a Cycle to Work Scheme is typically 12 months, although some schemes may offer longer payment periods.

Can I choose any bike or equipment I want through a Cycle to Work Scheme?

There may be some limitations on the types of bikes and equipment available through a Cycle to Work Scheme, depending on the scheme offered by your employer. However, most schemes offer a wide range of options to choose from.

How do I apply for a Cycle to Work Scheme through my employer?

To apply for a Cycle to Work Scheme through your employer, you should first check if your employer offers the scheme. If they do, you can usually apply through an online portal or through your HR department.

Can I use a Cycle to Work Scheme to buy an electric bike?

Yes, you can use a Cycle to Work Scheme to purchase an electric bike, as long as the bike meets the scheme’s eligibility criteria.

How does the tax savings work for a Cycle to Work Scheme?

The tax savings for a Cycle to Work Scheme are based on the cost of the bike and accessories, which are paid for through salary sacrifice before tax and National Insurance. This can save employees up to 42% on the cost of a bike and equipment.

What happens at the end of the payment period for a Cycle to Work Scheme?

At the end of the payment period, you will usually have the option to purchase the bike and accessories outright for a nominal fee, or return the bike and accessories to the scheme provider.