17.02.2023 | Reading time - 11 min(s)

How does the Cycle to Work Scheme UK work?

Written by Edinburgh Bicycle Cooperative

The Cycle to Work Scheme (also referred to as the 'bike to work' scheme) is a fantastic opportunity to get a new bicycle and/or cycling equipment tax free. Not only does this save you up to 42% off the price of a bike; you get to spread the cost over an agreed term - typically 12 months - rather than having to pay for the bike in full when you order it.

Initial considerations

Cycle to Work Facilitators

Employers often set up their Cycle to Work scheme through a third-party “Facilitator” - this gives staff the option to visit any bike shop that is affiliated with them. Not every bike shop accepts vouchers from every facilitator! Luckily, Edinburgh Bicycle Coop accepts vouchers from almost every major facilitator. To find out which schemes we accept, please see out dedicated page or contact us in-store or online.

Value of voucher

Previously, the Cycle to Work scheme limit was £1000. This cap has now been removed, so employess can choose bikes that are over this amount - the only limit is set by the employee's salary and the national minimum wage. One thing to watch, though, is that the value of your voucher must cover the full value of the bike. It is not allowed to add any of your own money towards the purchase of the bike. For example, for a £2499 bike, you cannot use a £2000 voucher and add the £499 yourself.

Is there a specific window to apply?

Depending on the employer, some will have year-round access to Cycle to Work vouchers but some will have specific windows throughout the year for you to apply.

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What is the term?

This will be specific to your employer and the Cycle to Work facilitator used. Most terms are 12 months, but it can be 18. At the end of the initial period, your employer may choose to extend the term to obtain your full savings. This is worthfinding out about before you start applying.

Who owns the bike?

For the term of your hire, the bicycle is owned by your employer and is hired to the employee. At the end of the term, there will be a transfer of ownership from the employer to the employee. There is occasionally a fee associated with this but depends on the employer how much, if any, will apply.

What can I get?

The scheme is designed to get you cycling to and from work therefore bikes, safety equipment, clothing and most accessories apply. There are some exceptions but we will happily talk these through with you.

Ordering and Application Process

It is a very simple process to order and apply for your cycle to work voucher. Here are the typical steps involved in a Cycle to Work transaction.

Visit us in store or online to choose your bicycle and any accessories you may require.
Once this is done, we will reserve the bike and accessories for you and will take a 10% deposit to secure the goods.
We email you or print the transaction, so you know exactly what value to apply for.
When applying for your voucher, you either go to the facilitator’s website (e.g Cyclescheme) and apply or follow your employer’s intranet site or link to the site.
Once your voucher is issued, you bring this in to store to pay off the bike and we refund you your deposit.
If you have chosen delivery, we send your bike out once the voucher is received and will refund you your deposit minus the delivery charge.

Please do not hesitate to get in touch if you have any questions related to the above or if we can help you find the right bike for you.

CYcle to work scheme

Tagged: cycle to work, cyclescheme

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How does the Cycle to Work Scheme UK work?

Initial considerations

Cycle to Work Facilitators

Value of voucher

Is there a specific window to apply?

What is the term?

Who owns the bike?

What can I get?

Ordering and Application Process

CYcle to work scheme