Cycle to Work Scheme UK: How It Works and How Much You Can Save

The Cycle to Work Scheme is one of the most useful employee benefits available to people who cycle, giving you the opportunity to get a bike and eligible cycling equipment through salary sacrifice.

Instead of paying for the full cost from your take-home pay, the cost is deducted from your gross salary. Because the sacrificed amount is generally taken before Income Tax and employee National Insurance, the amount your take-home pay falls by can be significantly lower than the retail price of the equipment.

The amount you can save depends on your circumstances, your tax position and the Cycle to Work arrangement offered by your employer.

This guide explains how the scheme works, how much you could save, what you can buy and how to make your budget go further by finding eligible products at a lower price.

What is the Cycle to Work Scheme?

The Cycle to Work Scheme is an employee benefit that lets you hire a bicycle and eligible cycling equipment from your employer using a salary-sacrifice arrangement.

You agree to give up part of your gross salary in exchange for the use of the equipment. Your employer then deducts the agreed amount from your salary over the hire period.

Because the salary sacrifice reduces the amount of salary subject to Income Tax and, where applicable, employee National Insurance, you can save money compared with buying the same equipment entirely from your take-home pay.

The government tax exemption applies to bicycles and cycling safety equipment provided through qualifying Cycle to Work arrangements. The equipment must be available to employees generally and the cycle must be used mainly for qualifying journeys such as travelling to work.

For the official rules, see GOV.UK's guidance on bikes for employees.

The exact application process is different for every employer. Your employer decides which provider to use, the maximum amount available and the terms of the scheme.

How does Cycle to Work salary sacrifice work?

The easiest way to understand the saving is to compare it with buying a bike normally.

Buying a bike normally

You receive your salary, pay Income Tax and National Insurance, then use your remaining take-home pay to buy the bike.

Using Cycle to Work

You agree to sacrifice part of your gross salary in exchange for the bike and eligible equipment. The salary sacrifice happens before the relevant Income Tax and National Insurance are calculated.

That means you are not simply receiving a discount from the retailer. The saving comes from the way the purchase is paid for through your salary.

Cyclescheme explains the salary-sacrifice calculation here.

How much can you save with Cycle to Work?

Your saving depends on the tax and National Insurance rates that apply to the portion of your salary being sacrificed.

For 2026/27, the standard Income Tax rates in England, Wales and Northern Ireland are 20% for the basic rate, 40% for the higher rate and 45% for the additional rate. Employee National Insurance is generally 8% between the relevant thresholds and 2% above the Upper Earnings Limit.

You can check the current rates on GOV.UK's Income Tax rates and allowances guide and GOV.UK's National Insurance guidance.

Illustrative Cycle to Work savings

The table below shows simple examples using common marginal Income Tax and employee NI combinations. They are illustrations rather than personalised tax calculations.

For example, if £1,000 of eligible equipment is provided through salary sacrifice and the relevant combined tax and NI saving is 42%, the reduction in your take-home pay would be around £580 rather than £1,000.

Your actual figure can be different. Income can fall across different tax and NI bands, Scotland has different Income Tax rates, and your employer's scheme may have its own terms and ownership arrangements.

For an individual calculation, use your provider's calculator. Cyclescheme's savings calculator takes factors such as salary, hire period and package value into account.

What can you buy through Cycle to Work?

A Cycle to Work package can include a bike and a range of cycling equipment, although the exact list depends on your employer, provider and retailer.

Bikes and e-bikes

Eligible cycles can include:

• Road bikes
• Hybrid bikes
• Gravel bikes
• Mountain bikes
• Folding bikes
• Electric bikes
• Cargo bikes
• Other eligible cycles

The government's Cycle to Work guidance provides more detail on eligible cycles and equipment.

You can also browse current road bike deals, mountain bike deals and gravel bike deals on Cycling Deals UK.

Helmets and safety equipment

Safety equipment is one of the main categories covered by Cycle to Work arrangements.

Depending on the scheme, this can include:

• Helmets
• Front and rear lights
• Bells
• Mirrors
• Reflective equipment
• Locks and chains
• Mudguards

See current helmet deals and other cycling accessories on Cycling Deals UK.

Cycling clothing and footwear

Many Cycle to Work providers also allow cycling-specific clothing and footwear. Depending on the scheme, this can include items such as:

• Cycling jerseys
• Cycling shorts and bib shorts
• Cycling shoes
• Gloves
• Waterproof or reflective cycling clothing
• Bags and panniers

Eligibility varies between providers, so check your own scheme before applying.

Bike equipment and accessories

You may also be able to include equipment that helps you use, maintain or secure your bike, such as:

• Tyres
• Pumps
• Puncture-repair equipment
• Cycle tools
• Panniers
• Luggage carriers
• Child seats
• Eligible replacement parts
• Components
• Some bike accessories

The government's guidance gives examples of equipment that can be included, while individual providers may have additional restrictions.

Can you use Cycle to Work for accessories without a bike?

Yes, some Cycle to Work schemes allow you to choose eligible equipment without taking a new bike.

This can be useful if you already have a bike and want to upgrade the equipment you use for commuting.

For example, you might use your package for a helmet, lights, lock, panniers, clothing and other eligible cycling equipment instead of buying another bicycle.

Cyclescheme explicitly offers bike-only, bike-and-accessories and accessories-only packages, while other providers have their own rules.

Always check your employer's scheme before building your package.

How to apply for the Cycle to Work Scheme

The process varies between employers, but it usually follows the same basic steps.

1. Find out which scheme your employer uses

Ask your HR or benefits team which provider you can use and what your maximum package value is.

Common providers include:

• Cyclescheme
• Green Commute Initiative
• Halfords Cycle2Work
• Evans Cycles Ride-to-Work

Your employer may only work with one provider.

2. Decide what you want to buy

Before applying, work out which bike and equipment you want and check the current prices.

This is particularly useful if the product is already discounted, because a lower retail price can allow your Cycle to Work budget to cover a higher-specification bike or additional equipment.

3. Apply through your employer or scheme provider

Your employer approves the application and arranges the salary-sacrifice agreement.

The provider may issue a certificate, voucher or Letter of Collection that you can then redeem with an approved retailer.

4. Redeem your certificate

Once your application has been approved, use the certificate according to your provider's instructions.

Some retailers allow online redemption, while others require you to order in-store or through a particular process.

Always check the retailer's Cycle to Work terms before placing your order.

How to make your Cycle to Work budget go further

The tax saving is only one part of the value you can get from the scheme.

The other is the price you pay for the equipment.

If an eligible bike is already on sale, you may be able to use the lower sale price as the value of your Cycle to Work package, subject to the retailer and provider's rules.

Example: buying a bike at full price

Suppose you have a Cycle to Work package of £1,500.

At an illustrative 42% saving:

£1,500 package → approximately £870 reduction in take-home pay

Example: buying the same type of bike on sale

Now suppose you find an eligible bike reduced from £1,500 to £1,200.

At the same illustrative 42% saving:

£1,200 package → approximately £696 reduction in take-home pay

The salary-sacrifice saving is the same percentage in both examples. The difference is that you're starting with a lower retail price.

That makes sale periods, clearance ranges and discounted previous-season bikes particularly useful places to look when you're deciding what to put through Cycle to Work.

Evans Cycles, for example, explicitly states that its Ride-to-Work scheme can be used on sale products, and Halfords currently advertises Cycle2Work savings on selected reduced-price cycling products. Evans Cycles Ride-to-Work · Halfords Cycle2Work terms

Find current cycling deals

Cycling Deals UK tracks current prices across UK cycling retailers, making it easy to compare discounted bikes, e-bikes, clothing, components and accessories.

Browse the latest cycling deals

You can also browse our cycling guides for buying advice before choosing a bike.

When is a good time to use Cycle to Work?

There is no single date when Cycle to Work is cheapest.

Retailers discount cycling products throughout the year, particularly during:

• End-of-season clearance
• Previous-model clearance
• New model launches
• January sales
• Black Friday
• Major retailer promotional periods

The important thing is to check the actual price of the product when you're choosing your package.

Our guide to when bikes are cheapest explains how these different sale periods work, while our Black Friday cycling deals guide covers the major November sales period.

Which retailers accept Cycle to Work?

The retailer you can use depends on which provider your employer offers.

Cycling Deals UK maintains a list of retailers with Cycle to Work options, including major cycling retailers such as Halfords, Evans Cycles, Merlin Cycles, Decathlon, Tredz, Sigma Sports, Ribble, Canyon, Tiso, Leisure Lakes Bikes, Planet X, Giant, GO Outdoors, Wheelbase and others.

Browse Cycle to Work retailers

See the Cycling Deals UK retailer directory

Before applying, check that your chosen retailer accepts your specific Cycle to Work provider. Retailer terms can also differ when buying discounted products.

You can also see current deals and retailer information for:

Halfords · Merlin Cycles · Tredz

What should you check before applying?

A few details can make a difference to the value of your package.

Your employer's maximum amount

There is no single universal Cycle to Work budget for every employee. Your employer sets the available limit and may have its own approval requirements.

Check your maximum before choosing a bike.

Whether the retailer accepts your provider

A retailer may accept Cyclescheme but not another provider, or vice versa.

Always check the retailer's current Cycle to Work information before submitting your application.

Whether sale prices are eligible

Many retailers allow Cycle to Work purchases on reduced products, but retailer policies differ.

Check the terms for the specific retailer and provider you're using.

Delivery costs

If you're buying online, check whether delivery needs to be included in your certificate value.

For example, Cyclescheme advises applicants to account for applicable delivery costs when requesting their certificate.

Whether you can top up the certificate

Under current Department for Transport guidance, adding personal funds to increase the value of a Cycle to Work certificate is not permitted under the scheme.

Cyclescheme's guidance on certificate top-ups explains the process if you need a higher-value package.

This is another reason to check the total price, including any delivery charges or retailer fees, before applying.

How the ownership arrangement works

The bike remains under the relevant hire arrangement during the initial hire period.

What happens afterwards depends on your provider and employer. You may have options to extend the arrangement or transfer ownership under the provider's end-of-hire process.

Check those terms before you join.

What happens at the end of the Cycle to Work scheme?

The bike and equipment are normally provided to you under a hire arrangement rather than being transferred to you immediately.

At the end of the initial hire period, your options depend on the scheme provider.

These can include extending the hire period, transferring ownership or buying the equipment under the provider's ownership process.

Different providers use different arrangements, so check your specific terms rather than assuming that every scheme works in exactly the same way.

Find a Cycle to Work deal

The Cycle to Work Scheme can make a new bike and cycling equipment much more affordable by combining salary sacrifice with the tax and National Insurance advantages available under the scheme.

Once you know your employer's budget, it is worth checking the current prices of eligible bikes and equipment before deciding what to buy.

A discounted bike, e-bike, helmet, lock, clothing or other eligible equipment can make the same Cycle to Work budget go further, provided the retailer and provider allow the purchase.

Browse current cycling deals on Cycling Deals UK

You can also browse cycling retailers or explore our cycling guides for buying advice before choosing your package.

Cycle to Work rules, eligible products, package limits, retailer policies and end-of-hire arrangements vary between employers, providers and retailers. The tax examples in this guide are illustrations based on 2026/27 rates in England, Wales and Northern Ireland and are not personal tax advice.