Bikes on a Bridge



We are pleased to announce that we can now offer the Cycle to Work Scheme through a choice of five schemes: 






The Cycle to Work scheme is a government initiative which promotes healthier and more eco-friendly journeys to work.  Employers sign up to the scheme, and are then able to purchase the bike you want (and any safety equipment), and loan it to you as a tax-free benefit.  You repay your employer out of your gross pay - before tax and NI has been deducted - so in effect you get the loan of a bike for a fixed period of time without having to pay any upfront costs.  The bike does, however, remain the property of your employer. 

In most cases, your employer has to be a signed-up to one of these schemes.  The exception is the Green Commute Initiative;  your employer does not have to be a member, but simply agrees to fund your bike through the scheme; the GCI will deal directly with your employer, 

Some schemes allow you to have more than one bike, but you must use them for commuting.  Perhaps this is for you because you have different commute routes, for example summer and winter routes using road or trails .

UPDATE JUNE 2019: The government has issued new guidance because it is aiming to increase the number of e-bikes in order to tackle congestion, speed up commutes and cut travel costs.  New guidance will make it easier for employers to provide cycles and equipment including e-bikes worth over £1,000. 

Check out the pages through the links above to find out more about each scheme and see links to their FAQ sections.

To help you see at a glance what each scheme offers, we've put together this summary:


  • No £1,000 limit

  • Employer does not have to join a formal scheme

  • You can have more than one bike as long as they are both used to commute

  • Has a scheme for specialist inclusion bikes

  • Minimum period 3 months; common terms are 12, 18 or 24 months

  • Authorised by the FCA

  • End of hire: GCI makes you a free of charge loan of the bike for 5 years; you can then buy it for £1


  • £1,000 limit on a bike and accessories.  No top-ups allowed


    Employer has to join this scheme and you need to be a member.  Many NHS organisations use this scheme
  • Length of hire: to be agreed with your employer

  • End of hire: you complete a short questionnaire on the bike's condition at the end of the loan period to determine its fair market value, then offset the disposal fee against it.



  • £1,000 limit unless employer agrees to more; you can add your own funds but you need to check with your employer

  • Employer has to join this scheme

  • You can have more than one bike as long as they are both used to commute

  • 12 month hire agreement

  • End of hire: you choose an ownership option - own it now (pay the market value), own it later (enter into an extended agreement), or return the bike to Cyclescheme.  



  • £1,000 limit unless employer agrees to more; If you wish to purchase items over this limit, you can add your own money; however, this will not form part of your salary sacrifice. All equipment remains the property of your employer during the hire period, regardless of whether you have added your own money. If a company wishes to allow its employees to purchase equipment over the £1,000 limit and make savings on the whole amount, they will need limited permission from the Financial Conduct Authority

  • Employer has to join this scheme

  • Hire agreement varies, perhaps 1-2 years

  • End of hire:  There is no guarantee ownership will be transferred to you once the hire agreement has ended, although it usually is.  Bike2Work Scheme will contact you at the end of the hire agreement about options. One option is to pay a small refundable deposit to them (either 3% or 7% depending on the original cost of the bike/equipment) and continue to lease the bike/equipment from Bike2Work for a further 36 months. If at the end you decide to keep the bike, they will retain your deposit. If not, you will need to return the bike to them and they will refund your deposit. You will not be charged for disposal of the bike but you will be required to arrange delivery of the bike and are responsible for any cost in doing so. Options may vary depending on when your Employer registered with Bike2Work Scheme. Contact Bike2work direct to find out which options are available.



  • £1,000 limit; you can't add your own funds.  Some employers impose a lower figure

  • Employer has to join this scheme

  • The information produced by your employer about the scheme will detail the dates between which you can apply – the ‘window’. Different employers run different application windows. For some employers the window is a one off so you wouldn’t be able to join later, others have a window every year or several windows a year. Your HR team is best placed to advise you.

  • You can have more than one bike as long as they are both used to commute

  • End of hire: no automatic entitlement for you to take ownership; however your employer may choose to let you purchase the bike.


 Your employer pays the initial cost of the bike/equipment and you agree to repay them that full amount back but through your gross pay (before tax and NI are taken out).  Put simply, you agree to give up part of your salary in exchange for a benefit – a bike.  The Salary Sacrifice scheme means you pay less tax and National Insurance.  



Where a salary sacrifice arrangement is used, your gross pay is affected, which in turn impacts upon your tax and National Insurance Contributions (NICs).  As entitlement to some benefits is based on the amount of NICs that are paid, entering into a salary sacrifice arrangement may affect your current or future entitlement to a range of benefits.



Yes, reducing your gross salary will most likely reduce your pension contributions, which in turn affects your final pension pot.  However, your employer might have different pension arrangements in place.  Please consult your pension provider for more details.



HMRC says that once implemented, a cycle-to-work scheme must be available to all employees with no groups of employees excluded.  However, a salary sacrifice arrangement cannot be used if in so doing the employee’s gross pay drops below the NMW.  To avoid this, the employee could be offered a lower value cycle package and/or a longer than usual hire period. 

Where employees are paid at NMW and salary sacrifice is not permitted, employers must make an alternative offer.  This could include loaning a bike without salary sacrifice or making available a pool of bikes for those staff to avoid them being excluded from the offer of a cycle.



This all depends on which income tax-band you are in.  This coupled with your national insurance contributions will give you the percentage of what you’ll save from your gross salary.

Basic Taxpayer Rate = 20%.
National Insurance contributions = 12%.
Total saving = 32%

Higher rate tax payers can save as much as 47%.

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