Cycle to Work

The Cycle to Work Scheme Explained!...

1. Registration: Your workplace registers with a scheme provider. There are several providers available, each with its own variations.

2. Bike Selection: You choose the bike you want. Whether it’s a standard bicycle or an electric bike (e-bike), the choice is yours.

3. Employer Payment: Your employer pays for the bike upfront. This means you don’t have to bear the full cost yourself.

4. Monthly Repayments: You pay your employer back through monthly instalments taken directly from your salary. These payments are tax-free and National Insurance-free, which means you save money.

5. Tax Benefits: By participating in the scheme, you’ll pay less tax and National Insurance each month. Basic-rate taxpayers can save up to 32% of the actual bike cost, while higher-rate taxpayers save even more.

6. End-of-Scheme Payment: At the end of the scheme, there’s usually an end-of-scheme payment. Technically, you’ve been loaned the bike, so you’ll need to buy it at a fair market value. Typically, this amounts to around 7% of the bike’s original cost, although some schemes charge as little as £11.

7. Employer Benefits: Employers benefit too! They pay less employer national insurance contributions (about 13% savings) and gain healthier, happier, and more productive staff members who don’t need parking spaces.