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Cycle Scheme

How to save at least 25% on a bike for work

From start to finish, here’s how Cyclescheme works

Tax is complicated; Cyclescheme is not.

The Cycle to Work scheme is all about getting you on a bike, and saving you some money. Getting a bike this way will mean you save at least of 25%.

If we could sum it all up in a few lines, they’d be these:

Choose a bike, hire it for a year, then snap it up for a fraction of what it’s worth. It’s like a year-round sale, with interest free credit.

Step 1 - Do your homework

The most important element of switching to a cycle commute, is to spend a bit of time thinking about what you’ll need. Think about how often you’re planning on cycling, what route you’ll take, how far you’ll go and what accessories you’ll need.

Thankfully we are experts in this field and can help find the perfect Cyclescheme package for you. So, if you do nothing else, pop by our store and have a chat with our experienced sales staff.

Step 2 - Submit your application

This couldn’t be easier. If your employer is already signed up with us, they’ll have a unique weblink that you’ll need in order to submit your application - usually If your employer isn’t signed up, head over to: and get them on board - it’s free, and they literally need to click a few buttons to get everything moving.

On the application page, you’ll be guided through a very simple form which asks for your work details, contact information and the value of the Cyclescheme Certificate you’re applying for. Hit ‘submit’ and your employer will receive a copy of your application to approve. At this point, you’ll also get a copy of your Hire Agreement.

Step 3 - Collect your Cyclescheme package

With your application approved and paid for (by your employer) it’s time to exchange your Cyclescheme Certificate for your Cyclescheme package. Pop by the store and we will get you fitted to your bike and on your way.

At this point your salary sacrifice and Hire Agreement will kick in. This means that for the next 12-months you’ll be paying a set amount from your salary each month in exchange for the hire of your Cyclescheme package from your employer - this is also where you make your income tax and national insurance savings (32% standard rate, 42% higher rate).

Step 4 - End of Hire and transfer of ownership

When your Hire Agreement finishes, you make one final (small) payment, and you’re done!

Sounds confusing? It’s not! Your tax savings happen because your Cyclescheme package has been hired from your employer. To retain these savings, a further ‘transfer of ownership’ payment has to take place (or else the tax man will be on your back).

For a Cyclescheme package under £500 you’ll be paying 3% of the original value, and for a package over £500 you’ll be paying 7%. The bike then remains ‘hired’ for a further 36 months (but with no further monthly payments) until ownership is officially transferred to you at no further cost. This means a worst case scenario of a payment of £70 and saving of at least 25%.

For a more personalised savings figure, visit and enter your details.

Still have questions? We’re here to help! Contact their team on, or visit the FAQs on our website

Quick fire questions:

How much will I save with Cyclescheme?

At the very least, you’ll save 25%. If you’re a higher rate taxpayer, you can save up to 35%.

What can I get through the scheme?

Almost any piece of kit you need to cycle to work. The bike (obviously), but also the accessories too - lights, locks, helmet and clothing. If you already have a bike, you can even just apply for the accessories.

How is my salary sacrifice calculated?

Very simply by dividing the total Cyclescheme package price by the length of your Hire Agreement. Usually, this means 12 payments taken from your salary, over a 12-month period.

What’s a Cyclescheme Certificate?

A voucher, coupon, ticket - it’s what you give to the bike shop in exchange for your chosen Cyclescheme package. We send you this by email, see step 3.

I’ve paid for the bike, why don’t I own it?

Simple answer: tax. In order to protect your income tax and national insurance savings, an additional ‘transfer of ownership’ fee needs to be paid. The Government have set out guidelines for how this should work, see step 4 for more details.

How is the transfer of ownership payment calculated?

There is a set percentage applied, depending on the age of your bike package. At 4 years old, the value is set at 3% (for <£500) and 7% (for >£500).

What’s a Hire Agreement?

This is an agreement between you and your employer. It states you will be hiring the equipment from them during the period of your salary sacrifice.

Other Cyclescheme videos include:

Process video:

End of Hire video:

Commuter Tales videos: