Could you save money on a new bike through your employer?
If you’re thinking about cycling more often, whether for commuting, shopping or leisure, the Cycle to Work scheme could help make buying a new bike and accessories more affordable.
The scheme is available through participating employers and allows eligible employees to obtain a bike and cycling equipment through a salary sacrifice arrangement.
How does it work?
Under a typical Cycle to Work scheme, you agree to give up part of your gross salary in exchange for the use of a bike and eligible cycling equipment.
Because payments are generally taken before Income Tax and National Insurance are calculated, you could make savings compared with buying the same equipment outright.
Schemes can cover conventional bikes, electric bikes and a range of cycling accessories, making them a useful option if you’re looking to start cycling or upgrade your existing bike.
How much could you save?
The amount you could save depends on your salary, tax circumstances and the arrangements offered by your employer.
Different schemes may also have different spending limits, repayment periods and arrangements for ownership of the bike at the end of the agreement.
It’s worth checking the full terms before signing up, including whether salary sacrifice could affect any benefits linked to your earnings.
Find out more
Ask your employer whether they offer a Cycle to Work scheme and how you can apply.
You can also find more information about how the scheme works, eligibility and the types of equipment covered on the GOV.UK website.