Join the UK’s leading Cycle to Work scheme today

Helping hand 

Ownership doesn't have to be expensive. Cyclescheme always recommends you choose our 'Own it later' agreement - this ensures fantastic end-to-end savings of up to 42%.

2 Own it now - Take ownership of your package by paying Cyclescheme the market value (e.g. for a one-year-old package this would be 18% or 25% of the Certificate value in accordance with HMRC requirements). 3

Return - Return the package to Cyclescheme at your own cost and pay no ownership fee.

Cyclescheme will contact you with your ownership options at the end of your Hire Period . This is usually 12 months from the point you received your Certificate used to collect your bike.

Cycle to work operates as a 'salary sacrifice' employee benefit. This means that you agree to give up part of your salary in exchange for a benefit – in this instance the benefit is a bike and/or accessories. The salary sacrifice is taken from your gross salary (before tax) which means that you will pay less Income Tax and National insurance.

How does salary sacrifice create a saving?

The saving is achieved by paying for the bike and/or accessories directly from your gross salary (before tax). This means your income tax and national insurance are based on your salary less the cost of the bike and/or accessories. This means that your income tax and national insurance are calculated on the reduced amount of salary. Hence, the amount of tax and national insurance you pay is less.

Normally, when you get a bike the process looks like this:

1. You earn your money
2. You pay your tax
3. You choose your bike and buy it

When you get a bike via salary sacrifice the process looks like this:

1. You earn your money
2. You choose your bike and pay for it
3. You pay your tax

The graphic below visualises this:

As you can see, by going down the salary sacrifice route you will lower the amount of income that you can be taxed on and thus make a significant saving on the cost of your new bike and/or accessories.

An up-to-date overview of rates of tax can be seen on the Government's website. However, to save you opening another tab we can confirm that normal rates of tax are 28% for a lower rate taxpayer and 42% for a higher rate taxpayer. This means that most scheme participants save between 28-42% on the cost of their bike and/or accessories during their initial hire period. 

It's important to remember that the cost of the commuting package will always show up on your payslip as the gross (or RRP amount) rather than the net (or 'with-savings') amount. 

An example of this is shown below:

It's also important to remember that an Ownership Fee will be due at the end of the Hire Period. This is to avoid tax liability and to ensure ownership of the bike is smoothly and effectively transferred from Cyclescheme to you. 

Cyclescheme always recommends that employees choose our 'Own it later' option, as this ensures savings are protected and enables you to get another bike or accessories package if you wish. As the 'Own it later' option will cost either 3 or 7% of your packages original value your total savings will end up being between 21 and 39% depending on the cost of your bike and/or accessories and the rate of tax you pay. 

Tax is complicated; Cyclescheme is not. You choose a bike, hire it for an agreed length of time, then snap it up for a fraction of its original value. It's like a year-round sale, with interest-free credit available in over 2,600 retailers nationwide.

We’ve worked hard to provide a transparent and easy to understand process. There are just three steps to go through to get a bike for work through Cyclescheme.

1. Pick Your Package & Apply

Select a package that suits your needs.

Just a bike	A bike and accessories	Just accessories

Use our calculator to check how much you can save.

Once you have a budget in mind use our retailer finder to select a local store or online retailer to shop with. If you want, you can decide on your retailer after you've applied. 

Remember, if you’re visiting a retailer they can give you expert one-to-one advice; if you shop online, do your research, check reviews and make sure you get your bike sizing correct. 

2. Get Your Gear

When you 'Apply', you’ll be guided through a simple form that asks for your work details (inc. payroll number), contact information, and the value of the Cyclescheme Certificate you’re applying for. If you've agreed to get your bike and/or accessories from a specific retailer you'll be able to link your request to them, but you can also decide on the retailer you want to use after you've applied by ' Deciding later'.

Your employer will review your application and pay for your Cyclescheme package. We'll then send you an eCertificate which you can exchange for your gear in-store or online. 

3. Choose an ownership option

When your Hire Agreement and salary sacrifice ends, you can keep your Cyclescheme package by paying a small ownership fee. There are 3 options, the price of our recommended option 'Own it later' is built into all our marketing communications and calculators and should not come as a surprise.  

Own it later (recommended option)

For a Cyclescheme package under £500 (exc VAT), you'll pay 3% of the original value; for a package over £500 (exc VAT), it's 7% – so a maximum of £70 on a £1,000 package. The bike remains ‘hired’ for a further 36 months, but with no more monthly payments. Ownership can then officially be transferred to you at no extra cost.

This method of transferring ownership is why you save a minimum of 23% and a maximum of 39% (some may save more due to deals or offers). 

Own it now 

The 'Own it now' fee allows you to own the bike straight away, but it costs more. For a Cyclescheme package under £500 (exc VAT), you'll pay 18% of the original value; for a package over £500 (exc VAT), it's 25% – so a maximum of £250 on a £1,000 package. The bike is officially transferred to you at this point and there are no others costs.

There is little material benefit to choosing this option and we recommend that all Cycleschemers opt to keep their bikes by choosing the 'Own it later' fee. 

Return the bike

If for any reason you do not want the bike at the end of the Hire Period you can return it to Cyclescheme and incur no additional costs. 

For example:

If you are on a 12-month scheme and have had 4 Salary Sacrifice repayments taken from gross salary prior to leaving employment, the remaining 8 should be taken from your final NET salary. This is what is described in the Hire Agreement as a 'Termination Fee'.

If you have benefited from tax and national insurance savings you are still likely to be liable for your ownership (End of Hire) payment. However, because you should never pay more than the RRP for the bike we may be able to waive the ownership payment:

• If fewer than two month's worth of salary deductions have been taken for certificates under the value of £500; or,
• if fewer than three months of salary deductions have been taken for certificates equal to, or over the value of, £500 have been taken before you leave employment.

Please note, it is not possible to transfer the agreement from one employer to another.

You can get whatever you need to keep you in the saddle and cycle commuting regularly. Including any type of bike, e-bike (electrically assisted pedal cycle) or cycle with at least 2 wheels. 

The only cycle to work scheme exceptions are:

• GPS ride trackers and navigation devices 
• Bike racks for cars
• Cameras 
• Turbo trainers or rollers
• Gift cards
• Nutritional products / foodstuffs
• Power meters
• Headphones
• Children's bikes

Everything else is allowable. For example:

• Bikes (including all variants of adapted bikes, recumbents and hand cycles)
• E-bikes (electrically assisted pedal cycles ONLY) 
• Cycle specific clothing 
• Tyres
• Components i.e. groupsets, brake levers
• Helmets
• Mudguards
• Locks
• Lights
• Frames
• Child seats
• Bags (on-bike and off-bike)
• Cycle trailers 
• E-bike conversion kits

Any items that are going to help you and your bike arrive at work (warm, safe and secure) are essentially allowable.

Please note ??

You cannot get micro-scooters or any type of motorised vehicle on the cycle to work scheme. E-bikes are electrically assisted pedal cycles.

This is a common question and there's a simple answer and a technical answer...

Simple answer:

• No, you do not have to commute by bike daily. 

Technical answer:

• You should use the bike and/or accessories mainly for commuting to and, if relevant, between workplaces.
• At least 50% of the bike and/or accessories use should be for work purposes. For example, if you used the bike 10 times in a year, at least 5 of those journeys must be work-related. 
• The bike and accessories can also be used for non-work purposes.

Please remember ??

• There is no need for you to keep a log of your Journeys.
• You are unable to claim business mileage allowance when using a bike that is being hired to you by your employer.

Cyclescheme has the widest network of any cycle to work scheme. 

Cyclescheme prides itself on being the cycle to work provider that has the broadest and deepest range of retailers and shopping options.

• You can choose to shop with any of our 2,600+ retailers nationwide
• You can choose to shop in-store, online, click and collect or brand direct 
• If you cannot find what you're looking for - we will find it for you

The cycle to work scheme does not necessarily have a limit. This is to ensure riders can get the exact bike they need to improve their commute, for example:

• you may need an e-bike to beat the hills or arrive at work sweat-free, or
• you might need a hard-wearing bike with a titanium frame to support you cycling 365, or
• you might need a specialist bike that suits your body type or any disabilities you have.

Employers have increasingly offered schemes without limits but it's not universal. Employers have to consider their cash flow and their employees' eligibility to join the scheme. It's important that we note that employers are under no obligation to offer schemes with a limit in excess of £1,000