Everything you need to know

The Cycle to Work scheme is a great way for UK cyclists to save up to 42 percent off the cost of a bike. Let’s have a look at how it works and whether you’re eligible.

How does the Cycle to Work scheme work?

In essence, your employer buys a bike for you to ride to work, you ‘hire’ it through salary sacrifice (which is where you save by not paying tax and National Insurance on the monthly fees) and at the end of the ‘hire’ period you buy the bike from your employer.

In other words, your salary sacrifice is made from your gross salary, not your net salary.

Hundreds of thousands of people have already bought a bike on the scheme, which was introduced as a tax exemption in 1999 by the government to ‘promote healthier journeys to work and reduce environmental pollution’.

Is there a limit for the Cycle to Work scheme?

For the first 20-years of the scheme it was widely assumed that your employer could buy the bike of your choice only up to a value of £1,000. However in June 2019 the Department of Transport sought to clarify that, in fact, if the bike shop you use or your employer is registered with the Financial Conduct Authority then you can choose a bike and equipment worth more than a grand.

Various scheme providers have come up with ways to minimise the final cost of the bike

The clarification was in response to the general increase in bike prices over the past two decades, but also in a bid to encourage more employees to switch to electric bikes — few of which cost less than a £1,000.

However much you spend the scheme works in the same way – because payments are made from your gross salary you pay less income tax and National Insurance, hence making savings.

We have some beautiful commuter bikes for you

Why use the Cycle to Work scheme?

  • You’ll live longer — says the NHS
  • It saves the entire CO2 output of a city the size of Hereford each year
  • Cycling to work can help you lose weight: you’ll burn between 75 and 670 calories a journey, obviously depending on how far your journey is (according to
  • It’ll make you feel happier, getting you outside in the sunshine boosting your levels of vitamin D
  • You’ll save money on commuting while also easing congestion
  • And we’ve got at least another 30 reasons to take up cycling

We accept most Cycle to Work Scheme vouchers

Don’t hesitate to contact us for more information