Cycle To Work Scheme Calculator

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Welcome to our Cycle to Work Scheme calculator where you can find out how much a bike would cost you per month on the cycle to work scheme. The calculations below are an estimate and depend on the particular scheme that your employer is signed up to.

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These tables illustrate the savings that can be made when your employer operates a Cycle to Work Scheme (or Bike to Work Scheme) in partnership with Edinburgh Bicycle. The Cycle to Work Scheme Calculator below uses figures based on a 12-month hire period.

Table 1. How the Cycle to Work scheme would be calculated for an intermediate rate taxpayer, assuming 21% tax and 12% NIC on salary up to £43,430pa.

Bike Value Monthly Reduction in Net Pay1 Net Cost of Leasing the Bike2
£300 £16.75 £201
£400 £22.34 £268
£500 £27.92 £335
£600 £33.50 £402
£700 £39.09 £469
£800 £44.67 £536
£900 £50.25 £603
£1000 £55.84 £670

Costs are for tax year 2020/2021 and a 12-month repayment period has been set.


Table 2. How the Cycle to Work scheme would be calculated for higher rate taxpayer, assuming 41% tax and a 2% NIC.

Bike Value Monthly Reduction in Net Pay1 Net Cost of Leasing the Bike2
£300 £14.25 £171
£400 £19.00 £228
£500 £23.75 £285
£600 £28.50 £342
£700 £33.25 £399
£800 £38.00 £456
£900 £42.75 £513
£1,000 £47.50 £570

Costs are for tax year 2020/2021 and a 12-month repayment period has been set..

1 Figures rounded to nearest 1 Penny.
Figures rounded to nearest £1.
3 The above tables are for illustration purposes only. 
4It should be noted that England, Wales & Northern Ireland Tax limits and calculations are different. This impacts the sums involved. Check HMRC for details.

The cycle to work calculator tables are accurate as a guide to the NI and tax that can be saved on the scheme. But please note that if your employer decides to sell the bicycle at the end of the hire period for a fair market value, HMRC guidelines have been published that your employer may follow. For more information please contact your employer as they do have options regarding the Fair Market Value payment at the end of the scheme. For example, as detailed elsewhere in these pages, they may just allow you to continue to use the bicycle free of charge without transferring the ownership over to you.

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