If you’d like to get fit and ride a bike to work, for all or part of your journey, then you may qualify to buy a new bike, tax-free, through the Cycle to Work scheme.
Not only will you make a huge saving on the cost of the bike, you’ll also save money on petrol, beat the traffic queues and enjoy hassle-free parking.
Cycling to work makes a great, energising start to the day!
About the scheme
- You save between 25% and 42% off the cost of a new bike and associated safety equipment (helmet, lock etc.) – the exact amount depends on the cycle package you choose and your rate of tax
- It’s run by your employer and is administered through the PAYE system
- You get to choose your bike – any type you like, including an electric bike
How it works
- You rent a new bike from your employer for an agreed period – usually 12 or 18 months. For this you’ll need to sign a hire agreement.
- During this period, you make regular payments taken from your pay – before tax and National Insurance are deducted (that’s where the tax-free saving comes from)
- At the end of the period, your employer can transfer ownership to you for a final payment at a greatly reduced price.
- The scheme is set up for the employer by a third-party provider – so the details can vary a little. Some allow you to extend the rental period or return the bike at the end. Be sure to check the details of your scheme before you start
What if my employer isn’t signed up to a scheme?
Ask them to sign up!
All the information they need to get started is in our Business Support pages.
Where can I find out more?
Check out the most commonly used Cycle to Work scheme providers: