Operating the Cycle to Work scheme

What is the Cycle to Work Scheme?

The Cycle to Work scheme is a government initiative which aims to encourage employees to cycle to work for both the health and environmental benefits. The initiative has been around for a number of years and has been successful for many businesses. Employees are able to buy a bike and cycling equipment through work and pay for it via deductions from their wages over a set period of time.


Why Offer a Cycle to Work Scheme?

  • Cycling can help improve employee physical and mental health which has been linked to improved productivity
  • Reduce pollution in your local area
  • Employees save on their tax and national insurance (generally 32-42% for most employees)
  • Employers can save on employers national insurance contributions (13.8% saving)


How does the scheme work?

Firstly you will need to register for the scheme online. This is a quick and simple process and should only take 5 minutes to complete. Once you are registered your employee can find the bike and/or cycling equipment they would like to purchase either online or in a local cycle shop and apply through your online portal. You will need to approve the request and the employee will then receive an eCertificate to exchange for their goods in store or online. You pay for the equipment and start making the deductions from the employee’s salary.  At the end of the hire period the employee will need to pay an Ownership Fee to keep the bike and avoid a benefit in kind charge.


For further information on the scheme and to apply online visit www.cyclescheme.co.uk .

If you are interested in offering this scheme to your employees you may also want to consider the Techscheme which you can read more about here 

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