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How does the Cycle to Work scheme work?
Your employer purchases the bike and/or bicycle equipment, then leases it back to you. Here’s an example:
- You chose a £600 bike OR a bike and cycling equipment OR just equipment
- Your employer purchases it on your behalf
- Your employer leases the bike/equipment back to you at £50 over 12 months
- You pay the £50 via a salary sacrifice agreement so it comes off your gross salary. Since you don’t pay tax on this £50, your net salary will only be reduced by around £34/month. (The exact amount depends on your tax band)
- By the end of the payment term, you’ll only have paid a total of £408 instead of £600.
What if my employer isn’t on the Cycle to Work scheme?
You can request a booklet for your employer here and we’ll send it out to them with everything they need to know. Once your employer is signed up, then you can get your bike.
It’s possible your employer is already signed up, in which case you can give us a ring (0345 257 0808) or send us an email and we can check for you.
How much can I save?
You can save up to 42% on the price of a bike/equipment, although this will depend on your salary. To get a better idea of how much you could save with bike to work, use our Cycle to Work Scheme Calculator.