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.
A few different scheme providers have their own variations but the basic idea is the same;
- Your workplace offers a scheme through a provider
- You choose an eligible bike and equipment within the scheme terms
- Your employer arranges the hire of the bike and equipment
- You agree to salary sacrifice from your gross salary during the hire period
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 more about 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.