If you’re considering making the switch to a pedal-powered commute or would like to upgrade your current commuting bike then it’s worth checking if your employer is part of a Cycle to Work scheme with a provider such as Cyclescheme or Halfords Cycle2Work.
Cycle to Work normally involves hiring a bike and eligible equipment through your employer, using salary sacrifice. You agree to give up part of your gross salary in return for the use of the equipment.
Scheme providers have different terms, but the basic arrangement usually involves:
- Your workplace registers with the provider
- You choose a bike and eligible equipment
- Your employer arranges the hire
- You give up part of your gross salary in return for the use of the equipment
Salary sacrifice can reduce the Income Tax and National Insurance you pay. Your overall saving depends on your circumstances, the scheme terms and any payment required to take ownership. Ask your employer or provider for a personalised quotation. Read how Cycle to Work savings are made.
Employers may also save on National Insurance, depending on the arrangement.
The bike does not automatically become yours at the end of the hire period. Depending on the provider’s terms, you may be able to continue hiring it, pay to take ownership or return it. Check the end-of-hire ownership options before joining.
Check out some of the FAQs from two of the main providers below, if you would like to know more.