Filters
£0.00
0
Basket
Basket
Close

No products in the basket.

Cycle to work

The cheapest way to buy a bike.

       

What is the Cycle to work Scheme?

The Cycle to Work Scheme is part of the Government Green Transport Plan aimed to promote healthier journeys to and from work, reduce air pollution and make cycling more affordable and accessible for commuters and leisure riders.

Available to PAYE employees, it enables savings of between 25% and 42% to be achieved on Recommended Retail Prices for new bikes and qualifying accessories.

The scheme allows employers to loan their employees cycles and cycling equipment as a tax-free benefit. It is important to note that the tax break is on the use of the bike, not ownership.

 

How much can I save?

How much you save depends on how much you earn and therefore how much tax you pay

  • Basic rate tax payers (those earning less than £50,000) will save minimum 25%
  • Higher rate tax payers (those earning more than £50,000) will save 42%
  • Additional rate tax payer (those earning more than £150,000) will save 47%
  • In addition, the employer will save 13.8% on reduced NICs

Once the employee accepts a salary sacrifice, their overall pay (cash element) is lower, so they pay less tax and NI. In addition, the employer will not have to pay Employers’ NI contributions on the salary sacrificed. Cycle to work scheme is a tax-free benefit.

 

How does it work?

It is quite simple – your employer buys the bike/accessories and you pay them back through monthly deductions from your salary over certain amount of time (depends which scheme).

These deductions are made from your Gross Salary, thereby reducing the amount of your taxable income and effectively reducing the cost of the bike to you.

Example of how salary sacrifice saves money

The table below shows an example of a standard salary and one with a salary sacrifice.
The bottom row shows the savings made due to less tax being paid.

 

Original salary

Sacrificed salary package

Salary

£30,000

£29,000

Tax-free benefit-in-kind
(cost of bike)

£0

£1,000

Personal tax allowance

£12,500

£12,500

Taxable pay

£17,500

£16,500

Tax due (low rate @ 32%)

£5,600

£5,280

Savings

 

£320

 

Based on Green Commute Initiative scheme (GCI offers minimum of 32% savings).

 

 

Saving example on a £1000 bike

The table below shows how much money can be saved on a £1,000 bike.

 

Basic rate tax payer (32%)

Higher rate tax payer (42%)

Amount of salary sacrificed

£1,000

£1,000

Tax saving

£320

£420

Final cost of bike to employee

£680

£580

 

Based on Green Commute Initiative scheme (GCI offers minimum of 32% savings).

I am interested, what’s next move?

 

Step 1

Check if your Employer supports the scheme and is signed up/registered with one of the available schemes.

 

Step 2

Visit our showroom or online store and choose a bike and even add some accessories.

 

Step 3

Apply for a Cycle to Work certificate or voucher via your Employer‘s Scheme Administrator (different Employers have slightly different approaches here, so talk to them and check their procedures).

 

Step 4

You’ll receive a certificate or voucher which once approved by your Employer, you provide to us and collect your new bike and accessories.

 

Step 5

Your Salary Sacrifice then commences and you start paying your employer back over the agreed period.

   

 

IMPORTANT: cycle to work scheme does not include bikes, e-bikes and accessories with promo codes.