Cycle to work scheme

What is the Cycle to Work Scheme?

The Cycle to Work scheme is a government-backed initiative designed to promote healthier commuting and a greener environment by encouraging employees to ride bicycles to work. The scheme offers employees significant savings on the cost of bicycles and cycling gear by allowing them to spread the payment through their employer, all while saving on tax and National Insurance.


How Does the Cycle to Work Scheme Work?

  1. Eligibility - most salaried employees are eligible if their employer participates in the scheme. It’s available to employees at all income levels, as long as they meet a few basic criteria, such as being paid via the PAYE system. Employers of all sizes can join the scheme, providing their teams with a meaningful benefit that aligns with environmental and wellness goals.

  2. Savings and Tax Benefits for Employees
    Through the scheme, employees can save between 25% and 40% on a new bike and accessories. This is possible because payments are made from their pre-tax salary, meaning less income tax and National Insurance contributions. The exact savings will depend on the employee’s tax bracket but can make a significant difference in the final cost of the bike.

  3. Choosing Your Bike and Accessories
    Participants can select from a wide range of bicycles (including e-bikes, foldable bikes, and traditional bicycles) and essential accessories such as helmets, locks, lights, and high-visibility clothing. Many providers now offer flexibility in bike type and price range, allowing employees to choose bikes that best suit their commuting needs.

  4. Payment Process
    The bike and accessories cost is split into monthly payments, typically over 12 months. These payments are taken directly from the employee’s gross salary, making the process seamless and tax-efficient.

  5. Using the Bike
    The scheme’s primary purpose is to encourage commuting by bike, which means the bike should primarily be used for traveling to and from work. However, employees are also free to use it outside of work hours, with no restrictions or tracking.

  6. End of the Agreement
    At the end of the repayment period, employees often have options to either:

    • Pay a small fee to take ownership of the bike.

    • Enter into an extended lease agreement.

    • Return the bike if they no longer need it.


Accepted Cycle to Work Vouchers

We accept vouchers from a range of popular providers, making it easy for employees to use their preferred scheme to access bikes and accessories. Our accepted providers include:

  • Green Commute Initiative

  • CycleScheme

  • Vivup

  • Cycle2Work

  • Bike2Work

Additionally, we also run our own in-house scheme, offering employees the flexibility to benefit directly through us!

Benefits of the Cycle to Work Scheme for Employers

1. National Insurance Savings
Employers can save up to 13.8% on National Insurance contributions for every employee who participates in the scheme. This translates to an average saving of £138 on every £1,000 processed through the scheme, helping businesses reduce costs while supporting their employees' wellbeing.

2. Enhances Employee Wellbeing
Cycling is a proven way to improve physical and mental health, and employees who ride to work often report feeling more energized and productive.

3. Reduces Carbon Footprint
With the push for sustainability, cycling offers a low-emission alternative to car and public transport commutes, helping companies meet environmental goals.

4. Cost-effective Employee Benefit
Offering the scheme can help with recruitment and retention as it’s an attractive benefit that employees genuinely value. And, since it’s tax-efficient, it doesn’t cost the employer much to implement.

5. Eases Parking and Reduces Congestion
Employers benefit from reduced pressure on parking spaces and lower traffic congestion near their workplaces.

6. Boosts Corporate Social Responsibility
Employers supporting cycling can leverage this as part of their CSR initiatives, showcasing their commitment to the environment and employee wellness.


How to Set Up the Cycle to Work Scheme

Employers interested in offering the scheme can partner with a provider or manage the scheme internally by following these steps:

  1. Choose a Provider
    Many companies offer end-to-end management of the scheme, including supplier partnerships, compliance, and employee support.

  2. Communicate to Employees
    Announce the scheme, explain how it works, and encourage employees to take advantage of this benefit. Many employers find success by running a dedicated wellness campaign around it.

  3. Administration and Support
    Providers typically handle the administrative side, but employers should also be prepared to assist employees with any queries.


FAQ

Q: Do I need to cycle to work every day?
A: No, while the scheme is designed for commuting, there is no requirement to cycle to work every day, and bikes can be used for other journeys as well.

Q: Can I buy an e-bike?
A: Yes, many providers include e-bikes as an option, which can make longer commutes or hilly routes more accessible for employees.

Q: Is there a maximum value limit on bikes?
A: While some providers cap the bike’s price, many schemes now allow more flexibility with higher-priced bikes, especially for e-bikes.


Interested?

We accept vouchers from a range of popular providers, making it easy for employees to use their preferred scheme to access bikes and accessories. Our accepted providers include