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.
A Cycle to Work scheme normally involves hiring a bike and eligible equipment through salary sacrifice, with deductions from your gross salary. Scheme terms and end-of-hire options vary.
A few different scheme providers have their own variations but the basic idea is the same;
- Your workplace registers with the provider
- You choose the bike you want
- Your employer pays for it
- You hire the bike through salary sacrifice, subject to the scheme terms
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 and check the end-of-hire options before joining.
Employers may also save on National Insurance, depending on the arrangement.
Check out some of the FAQs from two of the main providers below, if you would like to know more.
Or, if you’re an employer that would like advice on setting up a Cycle to Work Scheme, check out the helpful guide below.