
Cycle to Work Scheme
The UK Cycle to Work Scheme is a government initiative aimed at promoting healthier lifestyles and reducing environmental impact. It allows employees to save money and commute with a new bike and accessories, spreading the cost over tax-free monthly instalments through your employer, potentially saving you up to 47% on the cost!
If you are 16 or older, employed, paid through PAYE, and your employer participates in a Cycle to Work scheme, you can apply. Keep in mind that your salary after e-bike deductions must remain above the National Living Wage or National Minimum Wage.

To put it briefly
The employer purchases a bike on behalf of the employee, reclaims the VAT, and the employee repays the cost through gross salary deductions (i.e. before income tax and NI contributions are taken), ensuring they benefit without any cost to the employer.
What is the process?
Step One
Determine which scheme your employer is enrolled in, or encourage them to join one. We can assist with this.
Step Two
Choose your bike and any accessories from our selection, noting the total price.
Please Note: This scheme is only available for e-bikes meeting EAPC regulations. For eligible bikes, please see our road-legal e-bikes here.
Step Three
Request your e-certificate for the total cost (also called a voucher or letter of collection). Once you have it, send the certificate to us to place your order.
Ready to get started?
Please contact us before placing an order through a Cycle to Work scheme. You can reach out using the form below or by giving us a call on 0333 880 7203.
If you have already contacted us and have your Cycle to Work voucher or letter of collection (LOC) (if relevant for your scheme), please send it to us at info@bikeyardonline.co.uk
Along with the voucher, include your chosen bike (specifying the model), any accessories, your shipping address, mobile number, and a valid proof of ID, such as a passport, driver's licence or utility bill / bank statement (dated in the last 3 months).
Please note we do not currently accept Cyclescheme vouchers.
Please be aware: Promotional gifts and discounts are only available for direct purchases, not through the Cycle to Work scheme. Discount codes cannot be used for Cycle to Work scheme transactions.
Want to order through the Scheme or just have a question? Contact Us here
Cycle to Work FAQs
Who is eligible to join the scheme?
Employers of any size can participate. Employees must be paid through the PAYE system and must earn more than the National Minimum Wage after salary sacrifice. No credit checks are required, and employees under 18 can join with a guardian's signed guarantor agreement.
How do I get my employer signed up?
If your employer does not currently offer the cycle to work benefit, we would ask them to contact one of our providers.
Gogeta can set the scheme up for you very quickly. You can view their site here.
What is salary sacrifice, and how do participants save?
Salary sacrifice occurs when an employee agrees to reduce their salary for a set period (typically 12 months in the Cycle to Work scheme) in exchange for a non-cash benefit, such as a bike and safety equipment.
This reduction is taken from their gross salary (before tax), meaning the employee pays less in income tax and National Insurance.
Which bikes are available through the scheme?
You can choose from any road legal ebike in our catalogue, provided it is mainly used for commuting.
What savings can employees and employers expect?
Employees typically save 32% if they are basic-rate taxpayers and 42% if they are higher-rate taxpayers. Savings can be up to 50% depending on the scheme and what is purchased.
Employers usually save 13.8% of the salary sacrifice amount due to reductions in Employers’ National Insurance Contributions (NICs).
Is there a maximum value for the bike and equipment package?
There is no upper limit. Employers with a Consumer Credit Licence can allow employees to choose bikes of higher value.
Who owns the bike?
The employer owns the bike and equipment during the hire period. If the employer uses a finance company to fund the scheme, the finance company or bank owns the bike.
Does the bike need to be used for commuting?
Yes, the bike should primarily be used for commuting (at least 50% of its use should be work-related). However, it can also be used for personal purposes, and there is no requirement for employers to monitor usage or for employees to keep a mileage log.
Note that employees cannot claim business mileage allowance for a bike hired through their employer.
Who is responsible for maintenance, and what happens if the bike is stolen?
The employee is responsible for maintaining the bike. We have put together a guide to make this easier for you - please click here for more details.
If the bike is stolen, the employee must replace it and continue using it primarily for commuting. In this case, the salary sacrifice reductions will still apply, allowing the employee to benefit from tax and NIC savings.
We have partnered with Cycler who can provide out customers with full comprehensive insurance on all road legal ebikes (EAPCs). Please click here for more details.
What happens at the end of the hire period?
To maintain the scheme’s tax benefits, there is no obligation or guarantee of transferring ownership immediately after the hire period ends. However, many employers offer this option, and the cost depends on the duration of the hire period. Hire can also be extended at no extra cost to the employee.
Can I request only safety equipment and accessories?
Yes, you can apply for safety equipment and accessories without including a bike in your request.
What if an employee leaves or is made redundant?
Once the Hire Agreement is signed, it cannot be cancelled after the 7-day cooling-off period following collection.
If an employee leaves or is made redundant, they must repay the remaining salary sacrifice amount in full from their net pay, without tax benefits. Ownership of the equipment may then be offered as usual.
Can I place another order if I already have a Hire Agreement?
No, you cannot request another Certificate until your current Hire Period ends.
Is there a minimum spend for safety equipment-only requests?
Yes, there is a minimum spend of £100 for safety equipment-only requests.
What safety equipment is allowed?
Approved safety equipment includes:
- Cycle helmets
- Bells
- Lights (including dynamo packs)
- Mirrors and mudguards
- Cycle clips and dress guards
- Panniers, luggage carriers, and straps
- Child safety seats
- Locks and chains
- Pumps, puncture repair kits, cycle tool kits, and tyre sealant
- Reflective clothing, white front reflectors, and spoke reflectors
Please note that items such as cycle computers and trailers are not allowed under the scheme.