What is the Cycle to Work scheme?

The UK Government first introduced its Cycle to Work scheme in 1999 as a way of promoting healthier journeys to work and reducing air pollution. According to the Cycle to Work Alliance (CTWA) – a coalition of the five biggest providers of the scheme – more than 2 million commuters working for 40,000 employers have received a cycle through the scheme.

It’s what’s known as a salary-sacrifice employee benefit. This is where you agree to give up part of your pre-tax salary in exchange for a benefit – in this case cycling equipment – from your employer. In essence, your employer buys the cycle, and you hire it. The loan period is usually between 12 and 18 months but can be longer.

The ‘pre-tax’ part is where the savings come in. Because the payment is made before deductions, you won’t pay tax on that portion of your salary, saving you money on both income tax and National Insurance. How much you save depends on your tax bracket and the total cost of the kit

At Thame Cycles we use several providers that employers can register with for the scheme. Click on the logos below for more information: