How It Works
The Cycle to Work scheme lets employees spread the cost of a new bike over tax-free monthly instalments.
The UK Cycle to Work Scheme is a government initiative (salary sacrifice) 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.
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 National Insurance (NI) contributions are taken). The employer saves money too by reducing employer NI contributions by up to 13.8%.
Eligibility: If you are 16 or older, employed, paid through PAYE, and your employer participates in a Cycle to Work scheme, you can apply.
Benefits
The scheme benefits both employers and employees — here's how.
For Employers
- Free to sign up
- We handle everything from start to finish
- Reduce National Insurance contributions by up to 13.8%
- Offer a great incentive for employees
- Foster a healthier and happier workplace
- Alleviate parking and congestion issues
For Employees
- Save up to 42% on the retail cost of a new bike and accessories
- Instalments are automatically deducted from your salary, hassle-free
- Pay zero tax or National Insurance on your new bike
- No lump sums due at the end of the scheme
- Feel fitter, more productive, and energised
- Pay nothing upfront
The Process
Getting started is straightforward — just follow these steps.
Determine Your Scheme
Determine which scheme your employer is enrolled in.
Choose Your Bike
Let us know your chosen bike and any accessories from our selection, and we will give you a written quote.
Place Your Order
Request your voucher or letter of collection. Once received, send it over to us to place your order. (Some schemes don't use vouchers. Instead, we'll keep an eye out for communication from your scheme directly).
Accepted Schemes
We accept almost all major Cycle to Work providers.
Get Started
Ready to order through the scheme? Here's what to do.
Please contact us before placing an order through a Cycle to Work scheme. You can reach out using the form below, or by email. We usually get back to enquiries within a couple of hours during working hours.
If you have already contacted us and have your Cycle to Work voucher or letter of collection (LOC), please send it to us at hello@bikeyardonline.co.uk
Along with the voucher, please include:
- Your chosen bike (specifying the model)
- The frame size and colour (if applicable)
- Any accessories
- Your shipping address
- Your contact number (for delivery)
- A valid proof of ID (such as a passport or driver's licence)
Please note: Discount codes and free gifts are only available for direct purchases and cannot be used for Cycle to Work scheme transactions. On rare occassions, we may not be able to match a full sale price for a Cycle to Work order - please check with us for your specific bike.
Frequently Asked Questions
Common questions about the Cycle to Work scheme.
No, discount codes and free gifts are only available for direct purchases and cannot be applied to Cycle to Work scheme transactions.
We accept almost all schemes and vouchers. You can view the Cycle to Work providers we accept higher up the page.
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.
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.
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.
You can choose from any road legal ebike in our catalogue, provided it is mainly used for commuting.
Employees typically save 32% if they are basic-rate taxpayers and 42% if they are higher-rate taxpayers.
Employers save up to 13.8% of the salary sacrifice amount due to reductions in Employers' National Insurance Contributions (NICs).
There is no upper limit. Employers with a Consumer Credit Licence can allow employees to choose bikes of higher value.
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.
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.
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 our customers with full comprehensive insurance on all road legal ebikes (EAPCs). Please click here for more details.
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.
Yes, you can apply for safety equipment and accessories without including a bike in your request.
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.
No, you cannot request another Certificate until your current Hire Period ends.
Yes, there is a minimum spend of £100 for safety equipment-only requests.
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.
