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Cycle to Work Schemes

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Last updated on Jun 19, 2026

Save money on a new bike, cycling equipment, clothing, and accessories with the Cycle to Work Schemes. Cycle to Work Schemes are one of the most popular employee benefits in the UK, offering significant financial advantages for both employees and employers while supporting healthier and more sustainable commuting.

What is a Cycle to Work Scheme?

The Cycle to Work Scheme is a salary sacrifice arrangement that lets employees get a bike and approved cycling gear through their employer. The bike and accessories cost are deducted from their gross salary before tax and National Insurance are calculated. This means employees don’t pay tax on the bike and equipment value, saving them money.

Introduced under the Finance Act 1999, the scheme aims to encourage healthier commutes and reduce environmental pollution. Employers lend bikes and safety equipment to employees as a tax-free benefit for the duration of the hire agreement.

What are the benefits of Cycle to Work Schemes?

For employees

  • Save between 28% and 42% on a new bike and accessories, depending on your tax bracket

  • Spread the cost over monthly salary deductions

  • No large upfront payment

  • Easier budgeting with predictable instalments

  • Reduced commuting costs and lower your carbon footprint

For employers

  • Improved staff perks

  • Improved staff wellbeing and retention

  • Demonstrates commitment to sustainability

  • Supports a positive, health-focused workplace culture

How do I find out if I am eligible?

Although it is best to speak to your HR or relevant department to ensure you are eligible to take part, generally, employees must:

  • Be paid through PAYE

  • Earn above the National Minimum Wage after salary sacrifice

How does a Cycle to Work Scheme work?

  1. The employee applies for a Cycle to Work voucher through their employer’s chosen scheme provider.

  2. The employer pays for the bike and equipment upfront.

  3. The employee repays the cost through salary sacrifice over an agreed hire period.

  4. Monthly deductions are taken from gross salary, reducing tax and National Insurance.

The bike or electric bike can be used for commuting and/or leisure. Locks, clothing, helmets and more can also be added to a Cycle to Work scheme.

How much can I spend?

Your employer sets the scheme value limit and agreement length, usually determined by an affordability check. This limit is based on the total retail value of your chosen bike and accessories (exceptions on accessories can be found in our T&Cs). Knowing your employer’s limit can help you maximise your savings.

How do I redeem my Cycle to Work Voucher?

Online:

Only cyclescheme.co.uk vouchers can be used online in the checkout, other voucher types need to be processed manually by our support team or stores. The full voucher value must be used in one transaction and top-ups are not permitted.

If you hold a different voucher type, you can always contact one of our stores or our support team and place a telephone order. These can still be shipped to you.

To redeem your voucher online, simply add your bike and any other accessories to your basket and at checkout select 'CycleScheme' as the payment option. You will be prompted to enter your certificate code and redemption code. These can be found on your certificate letter and / or email.

In-Store / Telephone Orders:

We accept a wider range of Cycle to Work schemes when shopping in-store or when placing a telephone order. Accepted providers include: