Cycle to Work Scheme Guidance Update

Great News – the Cycle to Work scheme guidance has been refreshed with immediate effect making the scheme limit flexible for employers


Since this updated scheme guidance was published, it has come to light that the new documentation contained some unclear wording which meant that while in theory the limit had been removed, the actual process of creating a compliant, limit-free scheme was very difficult to execute.

We share the frustrations of our clients (new and existing) in that the new scheme legislation was extremely positively received and the employers that we work with were keen to enhance their scheme. However, we must ensure that the schemes we provide are fully compliant with the latest legislation and we (along with all other providers) would be unable to guarantee that at this point.

All members of the Cycle to Work Alliance are working to resolve this issue and will be communicating an update to all our clients as soon as we are able to provide any further information.

In the meantime, we are still running the ‘traditional’ Cycle to Work scheme as we always have so there is no impact on your scheme or how your employees currently access this benefit.

If you have any further questions regarding this information, please contact our client success team on 0330 100 2480.

Traditionally the scheme has always been capped at £1,000.00 as a maximum package value but thanks to the Cycle 2 Work Alliance this has now been changed to allow employers to choose their own limit to better suit the needs of their employees.

As we hold our own Consumer Credit Authorisation, we are able to provide the authorisation for scheme packages above the £1,000 threshold allowing the organisations we work with to set their own limits, while being fully compliant with DfT and HMRC (whose schemes we also run).

The Cycle to Work scheme now allows you to choose what package value limit you want for your scheme. This change in guidance means you can provide a Cycle to Work scheme that’s more inclusive than ever before, allowing you to cater for every type of cyclist in your workplace. When an enhanced scheme limit is used, Cycle Solutions retain ownership of the bike but issue a Salary Sacrifice Agreement to both the employee and employer, along with a Hire Agreement for the employee to approve before goods are released.

Employee ordering and approval process

End of scheme process (standard scheme v enhanced limit)

The refreshed scheme guidance means that the increased limit and process is optional to employers and if you wish to run a "standard" Cycle to Work scheme then this option is always available.

If you would like some more information about how to run a higher limit Cycle to Work scheme please contact us on 0330 100 2480 or on